Commercial News

Funding 365 cuts light development loan rates

Rozi Jones -
|
29th September 2020
Laura Kendall Funding 365
"Most of our brokers and borrowers appreciate their loans being priced in the same way that we price our bridging loans"

Funding 365 has sharpened the pricing on its light development product, with interest rates now starting from 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.

Laura Kendall, marketing director at Funding 365, commented: “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.”

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