Credit & Mercantile Plc, the bespoke short-term finance specialist, today announced it is making millions of pounds available to property investors who are struggling to find short-term loans in a tough credit environment.
This announcement couldn’t be timelier as the number of mortgage products on the market have fallen from 7,726 last month to 5,700 (1) this month. Prior to the credit crunch in August 2007, 47 per cent of property deals required a deposit of five per cent or less. Today only 12 per cent of the deals available on the market will accept a deposit that small,(2) making it extremely difficult for investors to secure a deal if their cash is tied up in assets elsewhere.
Credit & Mercantile, provides non status loans and takes security of a first charge secured on property providing initial periods from one month to one year so that borrowers can firm up their long term plans for funding arrangements.
With house prices reportedly falling in certain areas, it is possible that some real bargains might be found but opportunities and good deals are only achieved with the ability to source funding. A delay with your property finance can hold up negotiations and the signing of a contract – which could lose you that deal.
Roy Winston, Chairman at Credit & Mercantile, explains, “We have the resources to be able to move swiftly in terms of property finance. However, while we are able to move quickly, our stringent credit process does mean that we look at every proposal in detail, and on that basis not all loan requests will be accepted”
Until recently securing finance for a property deal hasn’t been too much of a problem as some high street lenders have accepted a very short bridging loan period of only a few days between initial purchase and re-finance.
Due to the changed market conditions, this has become too high risk for many high street lenders and as such, they have withdrawn this facility, so property investors will need to turn to specialist lenders like Credit & Mercantile, if they want to take advantage of the current market and a profitable deal.
Note to editors:
About Credit & Mercantile
Credit & Mercantile is an independent UK provider of short term loans and property development finance. There is no red tape, no extensive form filling, and no bureaucracy enabling clients to have an immediate decision and immediate funding. Loans are from a minimum of £200,000 to £15million and are secured on residential property. Every proposal is considered on its own merits.
1 Moneyfacts (mortgage products have fallen by 2,026)– May 08
2 Moneyfacts – May 08
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