The Montello Income Fund has continued to see ‘strong investor in-flows’ into the Fund. However the investor report details a number of issues that remains within the lending market, and the broader UK property market.
Montello Managing Director, Christian Faes, comments:
“Every day we see borrowers that should easily be able to obtain mainstream credit, but in the current market are having difficulty obtaining timely funding. This has continued to create an environment where bridging finance is able to capitalise on the market situation.
“In our latest investor report, we look at eight different house price indices and are unable to conclude the direction of the broader UK housing market. Furthermore, the Bank of England lending figures show that lending from the high street lenders has increased, but not by very much.
“If you look at the London property market, it has been extremely resilient and remains quite liquid, and it is clear that the high street lenders are more comfortable lending within London.
"Short-term lending against London residential property is the core focus for the Montello Income Fund, and this remains a very sound proposition.”
Highlighting the conservative nature of the Montello Income Fund, the latest investor report reveals the following statistics:
- The average Loan To Valuation for the Fund remains at a very conservative 50%;
- The average loan duration remains short term, at 5 months;
- 79% of the Fund is lent against London property;
- 91% of the Fund is lent against residential property.
Montello Head of Sales and Fund Distribution, Andrew Wood, comments:
“The Montello Income Fund continues to be very well received by the investor community, as we are recognised as the leading real estate bridging finance fund in the UK. The Fund offers an interesting alternative and provides a superior risk adjusted return.”
