Montello’s new funding line will form another strong part of its diverse lending offering, the lender revealed.

The lender has sought to allay fears, however, that the introduction of the new funds will affect either its existing lending or that of the Montello Income Fund.

It was reported last week that the London-based bridging financier has received an additional funding line from a private banking institution.

The initial funding line, provided by an un-named private financial institution, will initially provide £5 million, rising to £10 million over a period of six months.

Not much is known about the funding’s source other than Montello has nurtured a working relationship with the bank for some time, which has resulted the recent provision of funding.

Though the figure remains undisclosed, this brings Montello’s total funds under management to around £50 million.

The additional funding has been competitively priced, and will allow the lender to provide finance for prime London deals at a monthly rate of less than one per cent.

The new facility will also allow 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.”

When asked about how the new line might affect other Montello funds, Christian said: “There will be no impact. It will simply be another 'pot of funding' for us to choose from in building our loan portfolio, and increase our funds under management.

“The Montello Income Fund continues to be very popular with IFA and wealth managers that are comfortable with the risk exposure, and the Fund's track record, etc. We see our diversified funding as a significant strength of our business - as we are not reliant on any one source of funding, which allows us to provide flexible solutions for borrowers.

He added: “This particular funding line is very attractively priced for us, and allows Montello to lend at sub-one per cent 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.”
 
Gary Clark, Director of Business Development at the lender, said: "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."