Top Business News

Michelle Monck

Michelle Monck

Consumer Finance Expert
Published: 10/10/2019

Currently, bridging loans unlike residential and buy-to-let mortgages do not need to show an APRC for their products.  The use of a single metric to compare the cost of credit between products has been in place for 45 years. APRs (annual percentage rates) were introduced in the Consumer Credit Act 1974. In March 2016 these were updated for mortgages and buy-to-let to APRCs (annual percentage rate of charges) as part of the Mortgage Credit Directive.

Moneyfacts.co.uk wanted to find out the views from bridging lenders about whether APRCs would help or hinder borrowers and brokers in comparing bridging loans. We approached over 40 bridging lenders and of those that responded, half decided not to declare a view, and the other half were evenly divided between being in favour or having concerns about the appropriateness of APRCs for bridging loans.  

All the lenders who gave a comment agreed that transparency is critical in making sure brokers and borrowers can find a bridging loan that meets their needs. There is then a debate about the most appropriate way to do this from those who are strong advocates of the APRC, such as Funding 365 with others who take a more cautious approach about its applicability to the bridging market.

Hope Capital has recently launched a new bridging loan called ‘Hope Seven 5’. The new product is available on a first charge basis up to 75% loan-to-value (LTV) for residential properties up to £750,000. Borrowers can only use this bridging loan for non-regulated sales, for example to buy residential properties as an investment. This new bridging loan can only be used for properties in England and Wales at a rate of 0.75% for no longer than a 12-month term.

The new offer will only be available for as long as the tranche of funds set aside for this product lasts.

Gary Bailey, managing director said: “We have seen a growing demand for good value bridging loans for residential property, so we have launched this new bridging loan to meet this demand. We predict that it will be particularly useful for breaking a chain when buying a property as this is one of the biggest reasons for purchases falling through.”

 

American Express has teamed up with British Airways to launch a new business credit card that is available from today.

The British Airways American Express® Accelerating Business Card offers SME owners a number of reward incentives, including the opportunity to earn accelerated On Business Points and Avios from British Airways. Business owners should be aware that the card has a high 81.6% APR variable rate on an assumed credit limit of £1,200, as well as charging an annual fee of £210.

Commenting on the launch of the card, Colin O'Flaherty, general manager at Global Commercial Services, UK at American Express, said: “We work with thousands of business owners across the UK and we know that their world never stands still, and that they are always looking for the next opportunity to take their business further. We are therefore delighted to launch the British Airways American Express Accelerating Business Card, which will help company owners leverage their spending and earn rewards that can help progress and strengthen their businesses.”

Ailis Gavan, On Business manager at British Airways, added: “This new card offers business owners across the UK the opportunity to collect On Business Points, as well as Avios. Businesses can spend these On Business points on seats and upgrades through our On Business programme, which is free to join and can make business travel simpler with an online travel management tool.”

Allica, a bespoke bank for SMEs, has been granted a banking licence by the Prudential Regulation Authority (PRA) and will be dually regulated by the PRA and the Financial Conduct Authority (FCA).

The bank, which has the aim of enabling SMEs to advance their business by providing tailored support and financial expertise, is currently planning for a full launch of its products. It is expected to offer small business owners a range of products including loans, savings, payment services and asset finance.

Commenting on gaining the banking licence, Mark Stephens, chief executive officer at Allica, said: “The banking licence is an important milestone in our ambition to offer SMEs a genuine banking alternative. We built Allica specifically for businesses to realise their aspirations to advance. Allica will offer hands-on support from finance experts who are fully committed to providing each customer with tailored business solutions. I’m very much looking forward to the next exciting phase of launch."

Business savers are benefiting from increased competition in the market, with Redwood Bank increasing rates on both its one year business bond and 95-day business savings account.

Its 1 Year Business Savings Bond (Issue 2) now pays 2.00% on a £10,000 deposit and takes second place in the chart for its term. This account allows further additions within 14 days of account opening, but withdrawals are not permitted. While the 95 Day Business Savings Account (Issue 4) takes the top spot for its term paying 1.75%, again on a deposit of £10,000. It allows further additions, via a nominated account, and withdrawals subject to 95 days’ notice. Both these accounts can be managed by post, online and by phone. 

Search Business News

Search Business News

Most Popular Business News

news icon
Comparing bridging loans – lender’s views on the pros and cons of APRCs

10th October 2019

Currently, bridging loans unlike residential and buy-to-let mortgages do not need to show an APRC for their products. The use of a single metric to compare the cost of credit between products has been in place for 45 years. APRs (annual percentage rates) were introduced in the Consumer Credit Act 1974. In March 2016 these were updated for mortgages and buy-to-let to APRCs (annual percentage rate of charges) as part of the Mortgage Credit Directive.

Currently, bridging loans unlike residential and buy-to-let mortgages do not need to show an APRC for their products. The use of a single metric to compare the

Read More
news icon
American Express launches new business credit card

24th September 2019

American Express has teamed up with British Airways to launch a new business credit card that is available from today

American Express has teamed up with British Airways to launch a new business credit card that is available from today

Read More
news icon
New bridging loan from Hope Capital

30th September 2019

Hope Capital has recently launched a new bridging loan called ‘Hope Seven 5’. The new product is available on a first charge basis up to 75% loan-to-value (LTV) for residential properties up to £750,000.

Hope Capital has recently launched a new bridging loan called ‘Hope Seven 5’. The new product is available on a first charge basis up to 75% loan-to-value (LTV)

Read More
news icon
Rate rises make business savings accounts chart more competitive

5th September 2019

Business savers are benefiting from increased competition in the market, with Redwood Bank increasing rates on both its one year business bond and 95-day business savings account

Business savers are benefiting from increased competition in the market, with Redwood Bank increasing rates on both its one year business bond and 95-day business savings account

Read More

More Money and Finance News

Get our weekly newsletter

Weekend Moneyfacts is available free by email to all Moneyfacts.co.uk users.

Please send me Weekend Moneyfacts, Savers Friend and selected third-party offers.

Cookies

Moneyfacts.co.uk will, like most other websites, place cookies onto your device. This includes tracking cookies.

I accept. Read our Cookie Policy