Archive for the Uncategorized Category

The risk that the downturn in manufacturing might spread to the rest of the Eurozone economy has receded. Short-term indicators suggest that manufacturers’ export orders have stabilised and confidence among businesses in the services sector has increased since last September. Its forecast that the Eurozone economy will grow by 1.25% p.a. through 2020-2021, in line with recent progress. The main driver should be consumer spending, supported by higher real wages and increasing employment in the services sector. In addition, pressure from populist parties is likely to lead to higher government spending in France, Italy and Spain. Inflation in the Eurozone is likely to remain subdued at around 1% p.a. and its expected that the European Central Bank (ECB) will cut the deposit rate from -0.5%

The term mezzanine finance as used within the UK is a description given to a combination of debt and/or preferred equity financing. Whether you are an investor seeking to place an investment, or a borrower seeking to maximise investment into a business, mezzanine finance is a popular and attractive solution. Mezzanine lending is a sum lent or invested into a business on a junior basis that ranks in priority behind senior debt, but ahead of standard equity. By virtue of being subordinated to senior debt, which in itself often secures the main banking facility, the returns reflecting the risk are likely to be higher, proving the old adage: ‘a greater return for greater risk.’ What the funds raised are used for are largely immaterial, but

What is Mezzanine Finance? Mezzanine development finance is designed to act as a top-up loan, to bridge the gap between the developer’s available deposit and the loan available from the senior lender. Mezzanine funders will usually secure their position by taking a second charge over the development to ensure their capital is secure. By supplementing their borrowing with mezzanine finance, property developers can secure the highest return on investment, with the lowest deposit contribution. This financing option is generally used to reduce the deposit needed to undertake a property development project. Funding can be used to reduce deposits, to fund a gap in deposit, or to allow you to retain funds for future deals. 1 -Borrow up to 90% loan to cost 2- Terms from

If you are a property developer or business owner who is finding it difficult to raise the required funds to pay off an urgent HMRC tax demand then a bridging loan can be a highly practical and uniquely serviceable lifeline. Although there are various sets of circumstances where HM Revenue and Customs (HMRC) may choose to grant you a payment extension – these are not always available and failure to pay your tax bill on time can result in very serious consequences. There are two situations where HMRC will expect and demand an immediate payment from you and these occur if: 1) HMRC think you can pay now. 2) HMRC are not convinced you can get your tax payments up to date. Either way, if

A bridging loan is a type of fast, short-term secured borrowing which allows a buyer to move quickly when they need to. They’re “secured” for the lender – usually against the value of a property: either a property already owned, or the one being purchased. Or sometimes a “charge” is taken out against both properties to achieve the loan-to-value (LTV) ratio you need to minimise the cost of your borrowing. That’s why they’re faster to set up than long-term mortgage finance. It’s much quicker to establish the value of a bricks-and-mortar asset, than to verify employment status, income and affordability, and credit ratings. How much can I borrow – for how long? Bridging loans solve problems for buyers because they offer: Loans from £25,000 upwards

The UK’s decision to leave the European Union has placed a great deal of uncertainty on Britain’s economic future.   No doubt, this will lead one group of investors to prosperity whilst causing serious grief for another, particularly where the property market is concerned.  To call Brexit a potential dividing line between financial success and failure for the many different types of UK property investors and UK property developers is something of an understatement, particularly where the UK housing sector is concerned. Of course, whether the Brexit vote results in a dramatic win or a substantial loss from your own perspective will ultimately be decided by which side of the fence you have found yourself on. Recently, the Nationwide building society published a report that indicated