The initial funding line is for an amount of £5 million and will rise to £10 million over a period of six months. Whilst undisclosed, this brings Montello’s funds under management to around £50 million. The additional funding is competitively priced and will allow Montello to provide funding at less than 1% per month for prime London deals. The facility also allows Montello to expand its short term loan book against commercial property.
Christian Faes, managing director of Montello, said: “In the bridging market we get used to reading headlines all the time about this or that lender obtaining additional funding.
“We don’t claim to have gazillions to lend, but we do have real money that we can lend quickly.
“It’s a bit of a farce because almost weekly we have an introducer or borrower come to us with a deal where they have been let down by another bridging company – often from those claiming in the press to have loads of cash to lend.
“This particular funding line is very attractively priced for us, and allows Montello to lend at sub-1% per month for prime London transactions, including against commercial property.
“We are actively increasing our funds under management on a continuing basis, which has allowed us to grow our loan book accordingly. Our Montello Income Fund continues to see good investment in-flows and we are also talking to a number of other institutions about further additional funding.”
Gary Clark, director of business development, added: “This proves that Montello continue to be a serious player in the short term lending market in the UK and are genuinely keen to lend more.”