In this time, investors have lent more than £60m on property loans and developed Funding Circle’s strong presence in the property lending market.
The launch of the new bridging product, which complements the existing range of commercial mortgages, development and investment loans, was initiated after the company noticed an increasing number of enquiries relating to shorter term loans.
“Since we extended the loans we offer to small businesses to include property finance a year ago, we have been inundated with demand from successful property professionals who continue to find it difficult to access finance from traditional sources,” commented Parik Chandra, Property Finance Specialist at Funding Circle.
“Being able to provide a bridging product means we now offer the full suite of commercial property products, providing the liquidity that the property market needs and supporting projects across Britain.”
The short term loans now offered by Funding Circle include:
- Equity release against unencumbered properties
- Quick acquisitions of development sites
- Land purchases where the developer wishes to optimise planning permission prior to refinancing onto a more traditional development finance package
- Refurbishment loans
- Auction purchases
While housebuilding figures have been argued to still be way behind the widely accepted target, new products such as Funding Circle’s will allow property developers a larger range of short-term funding.
Funding Circle launched five years ago and launched its first development loan into the marketplace in May last year.
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