Today we can reveal Precise Mortgages, the specialist intermediary lender, is behind Coreco Specialist Finance’s recent announcement that they will be offering a bridging product with an initial interest rate of 0.60 per cent within the M25.

Coreco Specialist Finance declared last week that the product will have an initial rate of 0.60 per cent for the first three months, reverting to 1.0 per cent thereafter for a maximum term of 18 months. The product is only available to those within the M25 and Coreco had said that the loan was being offered by an unnamed short-term lender.

Julian Ingall, Director of Coreco Specialist Finance, told us that it took around three months to iron out the deal and plan for this product. “We are delighted with this product as we believe it fills the gap that many investors and developers have been asking us for many months. This product ideally fits those light refurbishment projects that will be ‘turned’ in a few months or those investors wanting a short term facility before refinancing into long term Buy to Let products”.

The loan has been specially created for those who need to purchase properties quickly, those buying at auction, developers who are purchasing under market value and those that are intending to do some light refurbishment.

Julian stated: “The product was initially chosen only for our clients and not third parties, but we have had a number of enquiries since the product was initially leaked and we had to make an official press release as a result. However, most of the outside enquiries we’ve received probably won’t fit the criteria for this specific product.

“We are not a packager, have a desire to be a packager nor are we trying to compete with packagers. Coreco are a brokerage and we are simply trying to look after and offer our clients the very best products.

“We’ve taken some of the costs which are associated with a bridge and have rebooted it into the product to ensure that it is an extremely good rate.”

The product is available up to 75 per cent LTV of the open market value and comes with a 2 per cent facility fee, minimum loan of £250,000 and a maximum term of 18 months.

Julian told us that at the moment “a bridging loan on average takes around 4 and a half months to complete,” which means those taking out the 0.60 per cent rate bridging loan, on average, will have to revert to the higher 1.0 per cent rate after the first three months.

Speaking about why they chose Precise, Julian explained: “We deal with many of the lenders and packagers but the true Bridgers in the market, I believe, are Precise, Dragonfly, Omni and Tiuta. Omni and Dragonfly are quite progressive but Precise are more process orientated and with their strong funding lines their products are cheaper than anyone else’s in the market.

 “We’ve known Precise for quite a long time and we have lots of respect for them. We know how strong they are especially on the Prime and BTL aspect. We’ve been speaking with them for a number of months setting up this product for our clients.”

Precise entered the short term lending market back in May of this year. Alan Cleary, Managing Director of Precise, said of the product with Coreco: “Julian asked me for an exclusive product to which I agreed. He put forward his proposal and as it met our financial hurdles. I agreed it and I am looking forward to the results.”

Julian concluded: “Our clients are extremely happy and the feedback we’ve received has been great from them. It is a standard bridging product, not for development finance, which is soft and for refurbishing and bridging. If the application is a rather straight forward bridge and clean with low risk then the product may help many of our clients."

By Jason McGee-Abe