We take a conservative approach to lending and have strict criteria for every borrower and every loan to help us manage risk and to try and protect your money.
Each loan application is assessed on the value of the security asset, borrower track record and the borrowers ability to repay the loan, including a personal guarantee. As experienced property lenders and real estate developers, we understand the finer points of the property business and look at the viability of the project and exit, we assess the risks, returns and pricing on a case by case basis.
Once we have a good understanding of the purpose of the loan application and how we will be repaid, we undertake due diligence on the company, its directors, and the asset used as security for the loan.
Our valuations are generally undertaken by a Royal Institution of Chartered Surveyors (RICS) valuer.
Valuations are the valuer’s opinion of the value at the date of the valuation and further scrutinised by our credit committee to help us price the loan and categorise risk.
Good to know
Given our property experience we approve only a small number of applications we receive.
On bridge loans, we lend a maximum of 75% of the value of a property.
On development loans, we lend a maximum of (a) 75% of the current value of the property, plus (b) 100% of development costs.
Total lending under (a) and (b) including all interest, fees and other costs, is capped at 70% of the anticipated gross development value - namely the price that the valuer anticipates the developed property will sell for when completed.