Funding 365 removes exit fee from light development product
Funding 365 has streamlined the pricing of its light development product, removing the exit fee.
With interest rates that start from just 0.74% per month, the light development product is designed to enable property developers to carry out heavy refurbishments, extensions, building conversions and permitted development rights (PDR) schemes, as well as finish and exit development projects.
Eligible loans are £200,000 to £3m in size and secured against properties in England and Wales for up to 24 months.
The maximum loan-to-value (LTV) is 75% (day one) and clients can also borrow up to 100% cost of works, up to a maximum loan-to-gross-development-value (LTGDV) of 70%.
The only fees charged are now a 2% arrangement fee plus legal and valuation and monitoring fees at market rate.
Laura Kendall, marketing director at Funding 365, said: “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.”