The first medium term loan by Montello, was completed last week in a deal for £1.15m and for a 3 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 1 month or 3 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, Managing Director of Montello, commented:
“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, commented:
“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.”
