Clint White, who is the head of property lending at Fiduciam, has set his sights high with a target to lend £250million in the next 12 months.
He says that to achieve that number the business has to offer attractive interest rates and also enjoy a “good reputation” and have the prospect of always being able to “live up to the borrowing needs of our clients”.
White has set out the figure following news that the institutionally funded and pension-fund owned lender has lowered the interest rates on its bridging loans for residential property across the UK.
The interest rate will drop to just 0.60 per cent per month, the lowest rate the lender has ever offered. The rate will be available on loans from £250,000 to £25million, at up to 60 per cent LTV over a loan period of six months to three years.
Fiduciam believes that its integrity helps “set it apart so it 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, it says (for example, if they take out a loan for 12 months they can redeem it, free of charge, in just six months if they choose to).
The 0.60 per cent rate will also apply to all Fiduciam’s residential loan products which allow multiple drawdowns and repayments. These, the company says, are proving increasingly popular as they “provide borrowers with the flexibility to adjust the loan amount to match their financing needs over time so that the overall interest expenditure can be minimised”. And White adds:
“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 per cent LTV and also for loans providing multiple drawdowns and repayments.
“Our target for the next 12 months is to lend £250 million. 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.”
Back in April, Fiduciam said it expected to lend £150m in 2018, which it was said was treble the amount of business carried out in 2017, and that this would continue a pattern of 100 per cent year-on-year growth.
It was reported that the lender took on six new hires in the bridging team since the start of the year. According to the lender an increased demand for “business bridge” solutions in the manufacturing, healthcare, hospitality, agriculture and food industry sectors was helping to drive growth.