London-based bridging financier Montello Bridging Finance, has obtained significantly expanded funding lines, which has allowed it to enter the medium term loan market.
The first medium term loan by Montello, was completed last week in a deal for GBP1.15m and for a three-year term. The loan was against a mixed use residential and commercial property in Soho, London.
This loan was completed by Montello at an interest rate of 11% per annum, with no up-front fees and no exit fees. The loan was for a minimum period of 1 month, and there were no early redemption penalties for the borrower. This allows the borrower entire flexibility as to whether the loan is for one month or three years.
Whilst Montello’s core business is short term bridging loans, Montello has various flexible funding lines which allows it to do a variety of transactions.
Christian Faes (pictured), Managing Director of Montello, says: “This was a classic situation where the borrower should have easily been able to obtain a loan from a high street lender. However, due to a very minor issue – which had no impact on the commerciality of the deal – the borrower was unable to obtain funding. The deal was done at a very conservative LTV against a prime London asset. This was a situation where the deal made sense, and we were able to utilise our flexible funding lines to arrange a deal that worked for the borrower.”
David Longhurst, Managing Director of Mandalay Financial Limited, says: “We typically would use Montello for straight forward bridging finance transactions. However, when we showed Montello this deal, they issued terms and completed the deal as quickly as if it was a bridging transaction. This was definitely a situation where we were able to use our strong working relationship with this lender, to get a market leading result for the borrower.”
