Avamore Capital launches new ‘Flexi-Term’ product

Avamore Capital has added a new ‘Flexi-Term’ product into its suite.

The product is designed to assist borrowers who are looking for the flexibility of a bridge but require the certainty of a longer term.

In a period of rising interest rates, Avamore says developers with larger portfolios are facing obstacles re-financing their current facility or when they are looking to release equity. This product offers the ability to do both with a loan term of up to 24 months, and the option to extend for a further year. The product also mitigates the need for a stress test, typically required by buy-to-let products, which is now in some instances making term finance unviable.

The product, which is being offered as a fixed rate from 10.99% p.a., will sit alongside Avamore’s other offerings; development, bridging, refurbishment and part complete development.

D’mitri Zaprzala from Avamore Capital commented: "Just like we did with part complete development, formerly known as Finish & Exit, we’re hoping that this product will support a greater portion of the market in a time when it’s most needed. We’re seeing an increased number of enquiries from those looking to refinance due to unexpected challenges that can arise, and with that, there’s a distinct need for a product that can adapt when this occurs. For example, Flexi-Term is provided with no ERCs which enables the client to sell the properties or part of the portfolio during the term, which isn’t an option they would get with a buy-to-let product.

"Instead of facing the current struggle to refinance when approaching the end of a loan period, those with a borrowing requirement which doesn’t suit traditional term debt can now make their finance adapt to fit them instead of the other way around.

"We are seeing high street lenders draw back, but we are able to retain our proactive and responsive approach when looking at how we can strengthen our relationships with our brokers and developers, ensuring they’re equipped with the best tools possible.

"Flexi-Term is just another step we are taking to inject the market with more innovation. This follows a recent announcement that we have moved into the Purpose-Built Student Accommodation space; another area identified as being underserved which we can now offer support in and we don’t plan on stopping there. In short, we’re continuing to do what we’ve always done. Just better.”