Specialist finance provider Octopus Property has announced the launch of its new commercial term product.
Octopus Property has created a straightforward term product for commercial investment properties, which is solely funded by Octopus Choice, the peer to peer platform launched by Octopus earlier this year. This product will dovetail with the existing bridging product, which is suitable for short-term borrowing requirements or where properties have little or no rental income.
Key features of the new product include 5.5% per annum fixed rate; interest only & no amortisation; loans from £0.5m to £2.0m; 2-5 year terms; a max LTV of 65% and no ERCs.
Ludo Mackenzie, Head of Commercial at Octopus Property, added:
“According to the recent De Montfort Report, in the first half of 2017 over £8.1bn worth of senior term lending in the UK was undertaken by UK banks and building societies, which is by far the biggest segment of the market. With this new product we are confident of appealing to both new and existing borrowers, combining the speed and certainty of a specialist lender with the lower cost of debt traditionally associated with high street lenders.”
Nick Westoby, fund manager at Octopus Property, added:
“We’ve used our market knowledge and expertise to develop a product that can help borrowers achieve their goals. We always work closely with our network of intermediaries to fully understand what borrowers want and how we can help them. This product allows a borrower to raise higher levels of debt and keep more of the rental income, while also enabling them to finance assets with shorter leases, or take an interest payment holiday to cover lease expiries and break options.”