The “low start” Market Maker ~ £1 billion allocated exclusively to the UK property market
4.95% p.a. including lender’s margin
“low start” interest rate
rising to 5.95% after 6 years
30 year fixed interest loan
With lender’s only breaks after 6 years (without penalty)
Minimum loan £5 million—no maximum
The rate is a function of the money market and can fluctuate daily
The above is based on a fixing on 3rd July 2007
Case History
£20.4 million refinance
Security: well-spread residential investment/student accommodation portfolio
Objective: With a low start fixed interest rate loan of 4.75% (including lenders margin) for the first 6 years—the net income serviced a substantially higher loan to value than the investor’s previous lender
*This loan drew down Jan 2007 hence the lower interest rate
Suitable Securities:
Quality residential investment portfolios including student accommodation
Modern student accommodation purpose-built blocks
Quality well spread commercial portfolios
Single assets let to quality tenants with long term (25 years plus) leases
Housing Association and Primary Health Care Trust Portfolios
Hotels and Leisure with long term tenant commitments
