finanze

Finanze and Elysium Bridging launch revolving credit facility to cut out 'unnecessary fees'



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Finanze has partnered with Elysium Bridging to create a new revolving credit facility that only requires legal, admin and arrangement fees to be paid once for multiple purchases.

The new ‘hunting licence’ product — available exclusively through brokerage Finanze — offers loans from £100,000 up to 70% LTV, at a rate of 0.99% per month, secured against an unencumbered asset.

Once the facility has been agreed, borrowers can draw down and repay on demand as much as they require.

Clients utilising the new offering are set to benefit from paying only one set of fees upfront — including an arrangement fee of 2%, £500 admin cost, and legal/valuation expenses.

A transaction fee of circa £500 is required for each drawdown to cover paperwork and remittance fees.

The revolving credit facility is available to all types of investors and is expected to be beneficial to those making several transactions per year via property auctions.

Alastair Hoyne, managing director at Finanze (pictured above), said: “Every time you take out a bridging loan, as you would if you bought two or three properties in a year, you would be paying interest rates, valuation costs and legal fees of the lender for arranging the facility, and an arrangement fee of 2% — but with this product, you’re only paying once.

“There’s a selfish rationale as to why more brokers don’t promote this product,” Alastair claims.

“In theory, this kind of agreement shoots brokers in the foot as we only get paid to arrange the facility once — so, next time the client buys, they don’t need to pay again.

“However, I think this is short-sighted; if you treat your clients well, they’ll return to you for repeat business.

“By providing a tool that educates clients and saves them money, they will hopefully be more likely to use you again for refinancing in the future.

“If I can help my clients become more profitable, they can afford to do more projects with us —and then we will naturally profit as a result.”

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