Fiduciam has reduced the interest rates on its bridging loans for residential property in the UK to 0.60% per month, the lowest rate the lender has ever offered.
The rate will be available on loans from £250,000 to £25m, at up to 60% LTV over a loan period of six months to three years. The 0.60% rate will also apply to all Fiduciam’s residential loan products which allow multiple drawdowns and repayments.
Andre Bartlett, director of Capital B Private Finance, said: “It’s always good for a lender to be comp. It’s great for us brokers.”
Clint White, head of property lending at Fiduciam, said: “While more and more bridging lenders are lowering their rates, many only offer them at a very low loan to value.
“We do things differently at Fiduciam which we are demonstrating by offering our very lowest rate up to 60% LTV and also for loans providing multiple drawdowns and repayments.
“Our target for the next 12 months is to lend £250m. This requires attractive interest rates, but also a good reputation. We are backed by institutional funding, ensuring that we can always live up to the borrowing needs of our clients.
“If our clients encounter difficulties on their projects, we work closely with them to find a resolution. As a result, we have never had an enforcement situation. There is nothing better than having successful borrowers returning to us for their next project.”
Fiduciam charges no exit fees. It also levies no early repayment charges as long as the borrower keeps the loan for at least half of the term; i.e. if they take out a loan for 12 months they can redeem it, free of charge, in six months if they choose to.