Octane Capital completes £2.6m bridge-to-let loan in 9 days
‘Product-less’ lender, Octane Capital, today announced it has completed a £2.6m bridge-to-let loan in just nine days to a client of specialist broker, PCF Financial Services (‘PCF’).
The 2-year facility was made against a block of 47 unencumbered residential flats in Suffolk with a value of £5m. The borrower, an experienced and acquisitive landlord, wanted to free up capital to purchase further properties in an attractive market.
PCF’s client plans to get the flats fully let and refinanced during the in-built 7-month ERC-free period (with the buy-to-let facility provided by Octane Capital acting as a back-up).
Octane Capital offers 2- and 3-year bridge-to-let facilities, with an ERC-free period at the start of the term to allow developers to exit without penalty, and includes a buy-to-let period acting as a safety net for borrowers.
Mark Posniak, managing director, Octane Capital, commented:
“Despite the complexity of the security, we had the best of both worlds on this deal. PCF’s client is a highly experienced UK landlord while PCF are an exceptional broker who packaged everything just as we needed it. On this occasion the loan made was at roughly 50% LTV, but brokers should be aware that we will consider higher LTVs and more challenging borrower profiles with this particular product. This product was perfect for the client too as it offers the flexibility of a bridge for the first 7 months coupled with the security of a buy-to-let for the remainder of the term if needed.”
Mark Sarratt, managing director, PCF, added:
“This was specialist short-term property finance at its finest. We really appreciate the speed and attention to detail demonstrated by Rick Hollingsworth and the rest of the Octane team. When it comes to complex and larger loans like this, Octane are among the best out there. We’ll definitely be putting more deals their way in the future.”