Octopus Real Estate launches unregulated bridging product
Following a record month, Octopus Real Estate, part of Octopus Group, has launched an unregulated bridging product, increasing the maximum loan-to-value to 75%.
With a minimum loan size of £100,000 and maximum of £500,000 the rate is 0.6%.
It follows a record month of lending which saw Octopus Real Estate complete £101m, maintaining its best ever start to a calendar year, which has seen it provide more than £357m of financing across England, Wales and Scotland.
D’mitri Zaprzala (pictured), head of sales at Octopus Real Estate, said: “The changes to our unregulated bridging product form part of our strategy to ensure that our range of products is extremely simple and competitive while meeting the needs of a whole spectrum of borrowers.
“The increased level of gearing available to good quality borrowers reflects our confidence in both the quality of our underwriting team and the outlook for the UK residential real estate market.”
During May, 37 new loans were originated across Octopus Real Estate’s residential, commercial and development lending products.
Notable deals included a £10m acquisition loan to Strawberry Star Group for a retail-to-residential scheme in Harlow, Essex and a record £28.4m refinancing facility for a 106-unit private rented sector scheme in Ilford, London.
Benjamin Davis, chief executive, added: “Thank you to our brokers and borrowers throughout the UK, whose continued support has enabled the ongoing momentum in our lending activity.
“With an extremely experienced team and the size and scale of the business, we will continue to look at new ways we can support the evolving demands of the real estate sector, as borrowers seek timely and competitive finance solutions.”
Last month also saw the launch of Octopus Real Estate, following the merger of two leading real estate businesses, Octopus Healthcare and Octopus Property.
With more than £2bn of funds under management, the business has been formed to create greater size and scale, affording it the opportunity to expand into new areas of the UK property market.