Funding 365 has completed a £700,000 stepped rate bridging loan at 75% LTV for a developer refinancing a newly built five-bedroom house in Nottinghamshire, freeing up cash flow to fund their next project.
The bridging loan carries a starting rate of 0.49% per month, stepping up to 1.15% from month seven. An exit fee of 1.15% applies, alongside a standard 2% arrangement fee and legal and valuation fees at market rate.
In keeping with Funding 365's standard product terms, there are no admin fees or early redemption charges, subject to a minimum three-month term, and interest is rebated daily on any loans repaid early.
The security is the last remaining unit in a multi-plot development, and the borrower already has a purchase offer in place, making early redemption a realistic prospect.
"Our Stepped Rate Bridge product is particularly popular with developers nearing the end of their sales process," said Prim Kambhato, underwriter at Funding 365 (pictured).
"While it still provides the reassurance of a full 12-month term, borrowers benefit from a lower rate if they are able to exit sooner. In this case, our security is the last remaining unit in a multi-plot development, and our borrower already has a purchase offer, so they are confident of an early redemption."
If you’re exploring bridging or development finance, get in touch and we can connect you with the right lender.
