We have had an enquiry come through last week from one of our introducing Brokers for a development project in Staffordshire of 2×3 bed semi-detached properties.
The client had been to one of our competitors and had been provided with a quotation based on a loan of £130,000.The client was quoted a rate of 1.75% per month for a term of 9 months. The initial amount offered was £30,000 for the foundations of the properties; however the client was advised that for the first 3 months of their loan they would be charged interest on the full £130,000 rather than the initial £30,000 draw down. This would have ended up costing the client an additional £2,000 per month for the first 3 months of their loan.
We responded to our introducing broker that same day with details of our Proposed terms. We were able to offer the client a rate of 1.65% per month and offered a term of 12 months; however there would be no additional penalties to the client should they wish to settle after 9 months. We were also able to confirm with our introducer that interest is only payable on the amount which the client has borrowed rather than the full loan ie: if the client borrowed £30,000 initially then they would only pay interest on that £30,000 until they are ready for their next set of funds.
The client decided to proceed with us and we have just issued our loan offer, Subject to the valuation being received. All of this happened within the space of a few days as the client wanted to move quickly.