Avamore Capital launches new ‘Flexi-Term’ product

By Bridging Loan Directory 31st August 2023

Avamore Capital has announced the introduction of ‘Flexi-Term’ into its suite of existing products following feedback it has collated from partners and professionals across the market.

The lender has been conducting engagement sessions with its clients, partners and prospects and in doing so, discovered that in a challenging market, there is an opportunity to support borrowers by offering them greater flexibility to fit within changing circumstances.

The new ‘Flexi-Term’ product is designed to assist borrowers who are looking for the flexibility of a bridging loan but require the certainty of a longer term.

In a period of rising interest rates, developers with larger portfolios are facing obstacles re-financing their current facility or when they are looking to release equity.

This product offers the ability to do both with a loan term of up to 24 months, and the option to extend for a further year. Importantly the product also mitigates the need for a stress test, typically required by BTL products, which is now, in some instances making term finance unviable.

The product, which is being offered as a fixed rate from 10.99% p.a. will sit alongside Avamore’s other offerings; Development, Bridging, Refurbishment and Part Complete Development, the latter of which was a product pioneered by the company in 2019 to better assist with the challenges that developers were facing at the time.

D’mitri Zaprzala comments:

“Just like we did with Part Complete Development, formerly known as Finish & Exit, we’re hoping that this product will support a greater portion of the market in a time when it’s most needed.

We’re seeing an increased number of enquiries from those looking to refinance due to unexpected challenges that can arise, and with that, there’s a distinct need for a product that can adapt when this occurs.

For example, Flexi-Term is provided with no ERC’s which enables the client to sell the properties or part of the portfolio during the term, which isn’t an option they would get with a BTL product.

Instead of facing the current struggle to refinance when approaching the end of a loan period, those with a borrowing requirement which doesn’t suit traditional term debt can now make their finance adapt to fit them instead of the other way around.

We are seeing high street lenders draw back, but we are able to retain our proactive and responsive approach when looking at how we can strengthen our relationships with our brokers and developers, ensuring they’re equipped with the best tools possible.

Flexi-Term is just another step we are taking to inject the market with more innovation.

This follows a recent announcement that we have moved into the Purpose-Built Student Accommodation space; another area identified as being underserved which we can now offer support in and we don’t plan on stopping there.

In short, we’re continuing to do what we’ve always done. Just better.”