The report showed that while global markets remain volatile, the conditions in the current UK mortgage market are allowing established bridging lenders to capitalise on the market situation.
It pointed to the recent events surrounding the eurozone, the US debt ceiling crisis, and the International Monetary Fund’s outlook on the UK economy, and contrasts those events with signs that the UK mortgage market is “stabilising”.
The core geographical focus area for the Montello Income Fund, being the London residential property market, remains very strong.
Statistics the report cited included: A return to investors of 8.5% per annum; an average loan to value of 51% across the Fund’s portfolio; 82% of the Fund is lent against property located in London; and 81% of the Fund is lent against residential property.
Christian Faes, managing director at Montello, said: “The current market situation has meant that we continue to see a huge volume of borrowers that are being let down by the high street banks. As a result bridging finance has moved to the mainstream.
“This has allowed us to lend to very high quality borrower against prime property in London, providing investors with a superior risk adjusted return.”
