Funding 365, known for its short-term lending solutions, has announced a significant reduction in its lending rates. This change primarily affects their residential bridging and light refurbishment finance options.
Key Rate Changes
- Residential Bridging Loans: These loans now start at a rate of 0.74% per month, with a maximum loan to value (LTV) of 65%.
- New Light Refurbishment Finance: This option begins at 0.79% up to 70% LTV and 0.84% up to 75% LTV.
These rates are particularly notable because they bring Funding 365’s offerings closer to the rates provided by specialist banks, making them a more competitive option in the market.
Broker Commission and Loan Terms
Funding 365 also outlined the impact of broker commission on interest rates:
- For a 2% broker commission, the interest rates start at 0.79% up to 65% LTV, 0.84% up to 70% LTV, and 0.89% up to 75% LTV.
These unregulated products do not include administration fees, exit fees, or early repayment charges. However, investors should be aware of a standard 2% arrangement fee, in addition to legal and valuation fees at market rates.
Loan Specifications
- Loan Sizes: These range between £200,000 and £5 million.
- Duration: The loan terms span from three to 24 months.
- Geographical Coverage: These loans are available for residential properties across England and Wales.
Usage of the Financial Products
Funding 365 has specified the permissible uses for these financial products:
- Residential Bridging Product: Can be used for development exit and auction finance.
- Light Refurbishment Offer: Suitable for internal decoration, loft conversions, and conversion to residential or houses in multiple occupation. This option also covers the funded cost of works up to 40% of the initial open market value.
A Word from Funding 365
Paul Weitzkorn, a director at Funding 365, highlighted the competitive edge these new rates provide. He emphasized that the new bridging and refurbishment interest rates position Funding 365 alongside specialist banks, offering compelling terms for both brokers and borrowers. Weitzkorn encourages direct communication with their underwriters for bespoke terms, promising responses within an hour.
Recent Financial Milestone
Funding 365 recently secured a £200 million funding line from an unnamed global investment bank. This move is expected to further strengthen their position in the market and enhance their lending capacity.