Funding 365 sharpens light development product rate

By Bridging Loan Directory 29th September 2020

Funding 365 has today announced that it has sharpened the pricing on its light development product with interest rates that start from just 0.74% per month with no exit fee.

The product is designed to enable property developers to carry out heavy refurbishments, extensions, building conversions and PDR schemes, as well as finish and exit development projects.

Eligible loans are £200,000 to £3million in size and secured against properties in England and Wales for up to 24 months.

The maximum LTV is 75% (day one) and clients can also borrow up to 100% cost of works, up to a maximum LTGDV of 70%.

The only fees charged are a 2% arrangement fee plus legal and valuation / monitoring fees at market rate.

As with all of Funding 365’s products this is available to all brokers, with no waiting lists.

Visit www.funding-365.com/products for transparent product guides or call Funding 365’s underwriters directly on 0800 689 0650 for more information, quick answers and bespoke terms.

Laura Kendall, pictured, Marketing Director, Funding 365 explains:

“We previously included an exit fee in our Light Development product as this is how the majority of development lenders price their loans.

But as we’ve settled in to the development market we’ve found that most of our brokers and borrowers appreciate their loans being priced in the same way that we price our bridging loans, with no exit fees (or application fees, admin fees, early redemption fees or other such fees).

We also found that we were, in practice, writing some loans that were a little lower than our advertised interest rate, so we adjusted that too.

We’re constantly assessing our products to make sure that they’re delivering for clients.”