As we move into the final quarter of the year, our finance update reviews the latest lender products and facilities:
Listening to the UK media about the state of the country’s finances, it is easy to believe that all parts of the economy are struggling.
This is not really correct in the world of UK investments and finance.
So far in 2025, we have seen three base rate cuts, bringing the base rate down to four percent from a high of five and a quarter percent. This equates to a 24% reduction in borrowing costs so far this year. It may not be as fast as some investers would like, it is however moving in the right direction.
At the same time in the auction markets, we have seen values increase and yields decrease this year, again starting to move in the right direction.
In the finance world there is no sign of any tightening in the investment finance market, lenders have money to lend and in some cases, have been reducing margins to increase their lending.
As we approach the final quarter of the year, some lenders are looking to drive more lending by creating new products with more flexible or lower cost facilities.
Below are some examples of post summer attractive funding.
This is for £250,000 – £750,000 loans secured on residential or commercial property:
Interest rate margins are influenced by a variety of factors which include the quality of the asset and the sponsor, loan to value, term of the loan, etc.
For commercial investment loans between £500,000 and £10 million, the guideline rates start from:
Margins have decreased for larger loans, the pricing depends upon the type property and the mix of a portfolio.
Current Margins 1.4% over BOE base rate or Sonia, the same margins can be used to fix rates.
For long term hold assets there are loan terms from 10 to 25 years with fixed interest rates available. Individual properties can be substituted if you want to make changes to your portfolio.
Current five-year fixed rate interest only loans for £750k – £20 million:
With higher base rates, using a fixed rate loan reduces the debt service requirements to increase the size of the loan.
Bridging Finance
Competative pricing is available with bridging loans now priced 2-3% over bank loans at 7-9% interest rate.
Average loan times of five-eight weeks with credit decisions within 24-48 hours.
Contact Us
Acuitus Finance uses a commercial finance sourcing system with access to over 100 specialist property lenders covering commercial property investment, residential property investment, development finance and bridging finance.
To find out how Acuitus Finance can support your investment plans, contact us today or complete the form on our website
Stuart Buchanan
Acuitus Finance
+44 (0)20 7034 4850
+44 (0)7879 432868
