Laura Kendall

Funding 365 cuts rates on light development loans

Funding 365 has sharpened the pricing on its light development loan product, with interest rates from 0.74% with no exit fee.

The specialist lender entered the development finance market in early August.

The product is designed to enable property developers to carry out heavy refurbishments, extensions, building conversions, and PDR schemes, in addition to finish and exit development projects.

Eligible loans are between £200,000 and £3m in size and secured against properties in England and Wales for up to 24 months. 

The product will allow for up to 75% LTV on day one, and clients can borrow up to 100% cost of works up to a maximum 70% LTGDV.

The offering includes a 2% arrangement, plus legal and valuation/monitoring fees at market rate. 

“We previously included an exit fee in our Light Development product as this is how the majority of development lenders price their loans,” said Laura Kendall, marketing director at Funding 365 (pictured above).

“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, admin, early redemption, 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.” 

Funding 365’s products are available to all brokers, with no waiting lists.

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