Funding 365 accredited under coronavirus business interruption loan scheme Funding 365 has been accredited as a new lender under the Coronavirus Business Interruption Loan Scheme (CBILS) by the British Business Bank. Delivered through British Business Bank accredited lenders, CBILS is designed to support the continued provision of finance to UK smaller businesses (SMEs) during the Covid-19 outbreak. The scheme enables lenders to provide facilities of up to £5m to smaller business across the UK who are experiencing lost or deferred revenues, leading to disruptions to their cashflow. Under the scheme, Funding 365 will provide unregulated bridging loans up to 65% LTV for up to 24 months. These loans will be secured on a first charge basis against residential properties in England and Wales. Read the full story here: https://www.mpamag.com/uk/news/general/funding-365-accredited-under-cbils/395483

Funding 365 slashes its commercial bridging rates to market leading levels Funding 365 slashes its commercial bridging rates to market leading levels Specialist bridge finance provider Funding 365 has this week announced a dramatic reduction in its interest rates for commercial bridging loans. Funding 365 will now offer commercial bridging loans at a market leading interest rate starting at 0.99% per month. Funding 365 Director, Michael Strange comments,“Funding 365 has built a reputation as being one of the fastest and most flexible bridge loan providers in the market, however, with today’s announcement we can now also be recognized as a low cost loan provider." Funding 365 Director, Mike Strange comments,“We’re excited to be bringing this new product to the bridging market. Funding 365 is well known for its speed of service and low interest rates. Launching this new Short Lease product also demonstrates Funding 365’s flexibility in financing unusual or complicated property transactions.”” Funding 365 Sales Director, Paul Weitzkorn adds,“Funding 365 has always worked with its broker partners to develop bespoke financing solutions for complex and non-standard scenarios. Now, our commitment to lend on short leases and fund lease extension provides borrowers with flexibility in a world where lease extension timing can be uncertain. We look forward to working with our broker partners on delivering this product to their clients.”

Funding 365 completes complex £3m semi-commercial bridging loan Funding 365 partnered with finance brokerage Kalms Property Finance to deliver a £3million semi-commercial bridging loan secured against a commercial unit and a residential mews house in London. The loan enabled the client to exit a development loan which they had used to build the commercial property on land adjacent to the existing house. It also provided them with short-term cashflow to allow them to focus on letting the commercial space and refurbishing the residential property. The Funding 365 team met with the borrower on site to discuss the proposal and oversee the valuation 2 days after the valuation was instructed, and the loan was executed within 10 days to meet their deadline. Despite the commercial unit being part vacant post works and the mews house being fully vacant and requiring refurbishment, Funding 365 delivered an interest rate of 0.85%pm at 67% net LTV. The planned exit route for the loan is via a restructure of the client's large property portfolio and refinance of other unencumbered assets. Paul Weitzkorn, director at Funding 365 comments, ”The smooth execution of this complicated loan was down to great teamwork from all parties involved - borrower, broker, lender, surveyors and lawyers. Funding 365’s bridging loan terms are always credit-backed, so even when complexities present at the due diligence stage we are able to stay commercially minded and deliver the required funds to the client at a highly competitive rate.”. Samuel Kalms, director at Kalms Property Finance adds, “It was a pleasure working with Funding 365 on this refinance. Their process and turnaround time coupled with experience and dealing with decision makers was extremely valuable and enabled us to deal with a number of last minute hurdles to get the loan over the line within the tight timeframe.”

London property - clear and present danger We have previously written a detailed article about the risks that we currently see in the London property market. As an attention grabbing summary, we stated that there is a high chance that the London property market could see a price collapse – and that this collapse could be swift and dramatic. To distill our analysis into a few bullet points, we stated: The London property market is supported by (pre-dominantly) Asian investors (it certainly isn’t supported by the City’s investment bankers any longer!). These investors are pre-dominantly investors who are either (a) looking for a safe home for their funds; (b) speculating in the market because prices are rising; or (c) long term buy to let investors. Buy to let investment in Central London no longer makes any financial sense. In real terms (after inflation) and after taxes and costs, most rental property does not generate a positive return (in other words, the investor is suffering a loss). If interest rates rise: - UK based buy to let investors will almost certainly start to suffer increasing losses on London rental property due to higher mortgage payments. - The exchange rate between Sterling and Asian currencies will start to strengthen meaning that it becomes more expensive for Asian investors to purchase London property so continued high levels of investment are unlikely. The maximum LTV at 0.75%pcm is 60% although higher LTVs will be considered if additional security is provided. Finally, the cherry on the cake, the UK Government is raising taxes on foreign investors (capital gains are now applicable on foreign property owners who dispose of UK property) and potentially on domestic buy to let investors (a mansion tax is still being debated). The problem that we were concerned about is fairly simple – should Asian investors start to pull out of London property and prices begin to fall, will this lead to an avalanche of other Asian investors heading for the exit (they are, to a significant degree, speculators after all)? You do not need to have a PhD in financial economics to understand that a bubble gets inflated slowly, but bursts quickly. The reason for this, as Warren Buffet says, is that confidence is gained one person at a time, but people panic together. I’m also sure that we have all heard the financial adage “don’t panic, but if you are going to panic, panic before anyone else”. Therefore, if you believe that the London property market is supported by foreign investors and speculators, then you should be very concerned about a sign of a slowdown as this could herald the point at which some (savvy) investors decide to offload their entire London property portfolio (and ring the bell to signify the top of the market). Who is going to buy these properties that rent out for a loss when prices are slipping? Answer – no-one, the prices have to fall until the rental return makes sense. Having written the previously mentioned article at the back end of 2013, I thought it would be interesting to see how the fact pattern has changed in mid-2014, and whether we think the tipping point is close. Firstly– how are London property prices faring? Badly, according to many news outlets – “asking prices fall 0.5% in June” according to Savills, while in July a RICS survey found that (by a majority of 10%) their surveyors thought that London prices would fall over the next three months. Secondly– How is Sterling faring against key Asian currencies? Very well (which is bad for London property). The graph below shows how the exchange rate between Sterling and the Chinese Yuan has appreciated steadily from about 9.2 last summer to around 10.6 today. What this means is that it is now about 15% more expensive for a Chinese person to buy a London property than it was a year ago just because of currency appreciation. If you also take into consideration the 16% growth in London house prices during that period (according to Rightmove), it is actually over 30% more expensive. Thirdly– are interest rates going to rise soon? The consensus is now “yes, and sooner than expected”. Interest rate increases this year are now perceived to be highly possible, if not probable. The recent jump in UK inflation to 1.9% has further increased expectation of early rate rises. So, in summary, if you believe that the London property market is supported by foreign investors (the evidence is overwhelming), that some of them will run for the hills when the market turns (the speculators will undoubtedly) and that the current interest rate / exchange rate dynamic will continue to make London less attractive as an investment and bring the tipping point closer – then you, like us, should worry. Mike Strange Director, Funding 365 Limited michael.strange@funding-365.com

Funding 365 completes £6.5m development exit bridging loan Funding 365 has completed a £6.5 million bridging loan at 70% LTV to refinance two apartment blocks in Maidenhead. The 9 month loan, introduced by West Rock Capital, enables the developer borrower to exit their development funding and complete the sale of multiple units. Funding 365 took security over 33 apartments across the two blocks, one of which was a ground up build and the other a conversion from an office building. The team delivered the loan in less than a month in order to hit the refinance deadline. The loan is under Funding 365’s versatile Residential Bridge product, which offers bespoke solutions of up to £10 million on properties across England and Wales, with no admin fees, exit fees or early redemption fees.

Funding 365 and Mantra Capital save auction purchase in just 3 days Last week Funding 365 completed on a bridging loan brokered by Mantra Capital in just 3 days, to rescue a client’s auction purchase of 3 flats in East London. Funding 365 stepped in to deliver the £270,000 to a tight deadline after the original lender pulled out at the last minute due to one of the flats being in an unlettable condition. As timing was critical, Funding 365 arranged for a valuer to be on site the day after application and completed the deal with only a verbal valuation figure confirmed. Post-purchase the client plans to fully refurbish the flats and resolve a planning issue before refinancing on to a buy to let mortgage. Funding 365 Senior Underwriter, Calum Waite, comments, “We pride ourselves on being able to turn around loan applications in rapid time - no matter how complicated the securities or unusual the circumstances. However, we can’t do this alone - thanks to our legal and valuation partners, and of course Mantra Capital for their assistance in progressing the loan to completion with time to spare.” Nerpal Singh, Commercial Relationship Manager at Mantra Capital comments, "We were under considerable pressure when the original lender pulled out of the transaction and left the client in a difficult situation. However, due to our experience, knowledge of the market and close working relationship with Funding 365, coupled with their pragmatic approach, we were able to find an acceptable solution for our client. Thanks to everyone involved.”

Funding 365 and Black Book Finance beat the clock for development exit bridge Funding 365 and Black Book Finance have delivered a 75% LTV development exit bridging loan, beating a hard deadline, to save their client from substantial charges on their maturing development facility. The £880,000 bridging loan provides the extra time required for the developer to market and sell their three new-build houses in Hampshire. The completion required unusually high coordination and communication between Funding 365, Black Book Finance and the lawyers on the case, Fieldfisher and Boyes Turner and included the need for a courier to deliver loan documents with less than two hours to the deadline. Funding 365 Senior Underwriter, Jonathan Brooks, comments: “Working with the Black Book Finance team was seamless. When timing is critical, having brokers who stay adaptable and communicate consistently is invaluable. This case highlights how solid partnerships between lenders, brokers, borrowers and solicitors directly impact success.” Black Book Finance CEO, Michael Clapper, adds: “The team at Funding 365 are always a pleasure to deal with and this case was no exception. From my experience, it is only when a lender commits to working in sync with the broker and the lawyers, that hard deadlines can be met. That was certainly the case here, and is one of the key reasons Funding 365 is always given the opportunity to quote for our clients.” Borrower Solicitor, Cara Groves, of Boyes Turner’s Development and Housebuilding Team adds: “It was delightful to see such determination and alignment across on all fronts on this transaction. Achieving completion by the target date, especially with the matter so seemingly far from the finish line on Friday morning, speaks volumes to the collaborative effort of everyone involved.”

Funding 365 completes £8.5m bridging loan in just 3 working days Fast bridging lender Funding 365 has completed an £8.5m bridging loan within 3 working days to save a borrower’s buy to let portfolio from being sold at auction. The borrower needed to re-finance very quickly as their high street lender had appointed an LPA receiver following a dispute and a number of its properties were due to be sold within days. The loan, which was brokered by LINK Capital UK, was supported by security over a portfolio of 16 commercial and residential properties. Known for its ability to execute complicated bridging loans very quickly, Funding 365 previously completed a £6.2m semi-commercial bridging loan within just 1 working day of agreeing terms with the borrower. Funding 365 Managing Director, Mike Strange comments,”We are very pleased that we were able to help the borrower retain ownership of their property portfolio and allow them the time to re-finance with a term mortgage. This is just another example of the quick, tailored service that our broker partners have come to appreciate from us. Credit must equally go to the team at LINK Capital UK and to our solicitors who worked above and beyond to complete this case within such tight time constraints.” LINK Capital UK Managing Director, Theo Kemp comments, “As a professional finance intermediary we are always conscious of those lenders that say they can deliver but can’t as ‘computer says no’ or credit committee declines the case at the nth hour. Funding 365 is unprecedented in its professionalism, speed and integrity - delivering what the customer requires on time and at highly competitive terms - especially in this situation with the borrower being in receivership. Mike Strange and Eddie Boakye worked extremely hard with us and the customer to deliver a complex solution so quickly."

Funding 365 and Clifton Private Finance deliver £4m development exit bridge Funding 365 completed a 75% loan-to-value (LTV) bridging loan with an interest rate of 0.79% per month, to provide a developer borrower with extra time to market and sell their properties. Introduced by Clifton Private Finance, the £4m loan was secured against six new-build houses in North London for a term of 12 months. The loan was under Funding 365’s residential bridge product which offers solutions of up to £5m-plus on properties across England and Wales with no admin fees, exit fees or early repayment charges (ERCs). Katie Spitz (pictured), senior underwriter at Funding 365, said: “This was a classic development exit proposition which allowed us to deliver a 75% LTV loan at a highly competitive rate of 0.79% per month. “The experience of working with Fergus and the Clifton Private Finance team was excellent, once again. “They’re always available to smooth the path for their clients and their communication is first class.” Fergus Allen, head of bridging at Clifton Private Finance, added: “Working with Katie and the team at Funding 365 is always a pleasure and this loan was a great example of the flexibility and exceptional service they offer. “Funding 365 took a view where it was required and reduced their pricing to fend off competition. “The client and I were delighted with their can-do attitude, quick responses and overall enthusiasm to lend. “We’ve had a lot of success with Funding 365 this year and look forward to building on that relationship into 2025.”

Funding 365 promotes Eddie Boakye to Head of Underwriting Funding 365 has today revealed the promotion of Eddie Boakye to Head of Underwriting. Eddie has been an integral member of the Funding 365 underwriting team since 2014 and last year he was also honoured by the wider industry with an ‘Underwriter of the Year’ win at the Bridging & Commercial Awards. As head of Funding 365’s underwriting department Eddie will continue to ensure that Funding 365 retains the extraordinary level of service that they are known for as well as further improve their product offering. The Funding 365’s underwriting team also last week welcomed a new addition in the form of graduate, Tim Plumbridge. Eddie comments, “I am really honoured to be appointed ‘Head of Underwriting’ at Funding 365. I’ve been here for a number of years and have witnessed first-hand a significant rise in all areas of the business. I’m delighted to embark on this new opportunity, and look forward to working with my colleagues and clients to continue the growth and success of Funding 365.” Funding 365 Director, Mike Strange adds, “We’re delighted to have Eddie as our Head of Underwriting. He has been with us since the early days of our company and has been integral to our growth and development. We’re excited about the future with Eddie as a key member of our team.” Eddie can be contacted on eddie.boakye@funding-365.com or 0800 689 0650.

Funding 365 completes 75 percent LTV £2million loan with Black Book Finance Funding 365 has this week completed a large portfolio refinance brokered by Black Book Finance. The tailored loan was to enable the borrower to restructure the debt across their seven properties – including an HMO - in Bristol. Alongside restructuring the current debt, the borrower also needed to release cash to purchase another BTL property to add to their portfolio. As their properties had strong rental yields Funding 365 was able to offer 75% LTV – just what the borrower required to cover the refinance and cash raise.

Funding 365 reveals new business development manager Fast bridging lender Funding 365 has this week expanded its team with the appointment of Dawn Trustam as Business Development Manager Dawn’s career spans 2 decades in mortgages and bridging at firms including Shawbrook Bank, Barclays Bank, Commercial First Mortgages and Mortgages for Business. Her priorities are to deepen Funding 365’s relationships with its existing broker partners as well as introduce new bridging brokers to its panel. Funding 365 Director, Mike Strange comments, “We’re delighted to be welcoming Dawn to the Funding 365 team. We’ve spent the past year developing Funding 365’s products with our broker partners and we’re confident that we have an unparalleled proposition - honest bridging loans from 0.65%pcm at a speed that cannot be beaten. Now with our team in place we’re ready to service all of the brokers who believe that getting fair, competitive loans for their bridging clients is their top priority.”