Online Property Finance Brokerage Delivers

When you want to move fast you need options. By using online property finance brokerage www.PropertyFinanceFinder.co.uk our client secured a market beating facility at 0.85% per month, and it was done quickly. Time pressure was a factor with the change in tax laws due on the 1st of April.  

By controlling the process the borrower was able to personally select the most suitable lender for his needs based on pricing, loan to value and geography. He selected a flexible lender who was new to market, which helped him secure the loan without the need for lengthy application forms or multiple layers of lenders underwriting. 

The lender had been recently added on to the platform so the borrower benefited from a new to market lender, despite the funder having limited profile at the time. Providing borrowers with access to best in market pricing is something we do every day. Our research team are constantly speaking to new and established lenders to understand how they can offer our property developer and landlord clients the best possible deal every time they need to borrow. 

Having delivered the desired loan quantum with a lenders fee of 1.00% and at an interest rate of 0.85% per month with no exit fee, our client was extremely happy.  

By ensuring the process moved along swiftly on both sides of the transaction, the deal was completed in 4 weeks. 

We now look forward to assisting this borrower with long term finance, as we work to launch the new property investment component of Property Finance Finder. 

To view which lenders could offer the best rate, or the highest loan to value please visit www.PropertyFinanceFinder.co.uk.

Residential Development Finance – Latest Funding Prices

Having returned to the UK after working overseas, it is clear that the property development finance market is quickly evolving.  The widespread under supply of housing is supported by huge demand from occupiers and investors alike. 

The various sub-sectors are all equally active, with student housing and private rented sector both at the forefront.  As such the lending market is evolving by the day, with more and more liquidity coming into the market.  Loan to costs are increasing, while pricing is compressing.

We have seen an increase in the number of lenders active in this sector.  Retail banks are providing rates as low as 2.50%, and stretched senior lenders can provide attractive loan to cost facilities at 90%. 

This week we have received several telephone calls from newly active lenders looking to deploy capital into the UK residential development finance market.  Most of these lenders are backed by private equity funds or family offices seeking income yield.

Lender type                    Loan to cost                Lenders fee             Rate pa              Exit fee
Family office                    100%                            2.00%                       7.00%                 0% of profit
High LTC 1                       90%                             1.00%                        10.00%                1.00% of debt
High LTC 3                      85%                              1.50%                        6.50%                 1.00% of GDV
Lean pricing 1                  65%                              1.00%                        3.00%                 0.00%
Lean pricing 2                 50%                             0.50%                        2.50%                 0.00%

2016 is likely to be an active year for lending in the UK, with 2015 having seen the highest levels of property finance since 2006.  We would anticipate that there will be an inevitable increase in the lenders risk appetite, and a reduction in the net cost of finance as lenders compete for transactions.

If you have any requirements we can directly quote for, then please do not hesitate to get in touch with me by email or phone below.

Sean Crombie

Sean@ConduitFinance.com
DDI: 0131 564 0274
M: 07595 520 577

Brokers Love Conduit

In January 2016 we successfully completed a land bridge within a three week window for one of our valued introducers.

The facility was for £4,000,000, secured by a residential development site in England.  Our client was a house builder who was about to lose the site, along with the £2.5m profit that went with it.

Conduit’s Andy Lawson worked around-the-clock with the introducer to quickly pull together the due diligence pack and secure heads of terms that the borrower was keen to progress with.

The broker said, "Despite the complexity of the deal and very tight completion deadline, Conduit worked tirelessly to complete the facility for a very satisfied client."  Conduit Finance Managing Director Jamie Davidson commented, “This is the type of deal we enjoy delivering for our introducers.  We never circumvent introducers and welcome the opportunity to work with more of our partners in the future.“

Did we mention the broker received £32,000 for the introduction and was paid same day?

If you or your clients have a time pressured situation, then we are here to start early, finish late and work weekends to make it happen with our many sources of lending.

Jamie Davidson | Loans over £10m and restructuring | Jamie@ConduitFinance.com

Andy Lawson | Loans over £1m | Andy.Lawson@ConduitFinance.com

Edward Page | Loans under £1m | Edward@ConduitFinance.com 

Sean Crombie | Business Development | Sean@ConduitFinance.com

Mark Reidy | Business Development | Mark@ConduitFinance.com

Buy to Let Mortgage - Limited Edition Best Buy

Giving landlords peace of mind, this is the market leading, longer term fixed rate available for buy to let mortgages.  Limited edition, so please contact us to register your interest while stocks last.

• 5 year fixed rate at 3.99%.
• Available up to 80% Loan to Value, allowing clients to expand or improve their portfolio.
• Rental stress test at only 3.99%, even at 80% LTV to get more from the rental.
• Free standard legal fees.
• Reduced completion fee of 1.5% (no minimum) added in – even if takes above 80% LTV.
• Revert rate – standard variable rate minus 1% - currently 3.98% with no tie ins when fixed rate ends.
• No minimum income, income from rental acceptable – professional landlords.
• No portfolio limits.
• To 75% any form of capital raise options include business purposes, debt consolidation etc. to 75%.
• To 80% anything property related including reducing residential, home improvements to other properties, purchasing new properties, transfer of title.

Please contact Stuart Cardozo on 0131 564 0172, or email Stuart@ConduitFinance.com for more information.

Price Update - Friday 14th August 2015

Residential Property Investment

We recently used this lender to refinance a portfolio of good quality flats at moderate gearing.

Margin of 2% over base rate
Arrangement Fee 1% 
Minimum loan £150k
Maximum loan £30m
Interest Only for 5-10 years
Loan to value from 55% to 65%
Loan term up to 20 years
No personal guarantees

Contact Ed for more information on 0131 564 0172 or Edward@ConduitFinance.com