Assetz lowers mortgage rate to expand borrower base
ASSETZ Capital has added a new, lower interest rate to cater for lower-risk borrowers looking for commercial mortgages.
The property-backed peer-to-peer lender said on Friday that it has decreased its entry-level interest rate to 6.9 per cent from 7.9 per cent.
“We haven’t changed our original range of rates and risk criteria, we’ve simply added a new entry rate for lower-risk companies,” chief executive Stuart Law told Peer2Peer Finance News.
“These would tend to be larger companies with higher turnover and a stronger balance sheet, perhaps at a lower loan to value.
“They might not quite be comfortable in the retail bank market – maybe they’ve restructured the business or took a hit to profits last year, but their balance sheet is still strong.”
Assetz is looking to expand its pool of borrowers with the new, lower rate, as it looks to ramp up its lending.
“We’re on a mission to get to the next milestone of lending of £50m a month and this is part of that process,” said Law.
Assetz gained full authorisation from the Financial Conduct Authority earlier this month and is preparing to launch its Innovative Finance ISA in the last quarter of 2017.