Funding 365 completes £8.5m bridging loan in just 3 working days Fast bridging lender Funding 365 has completed an £8.5m bridging loan within 3 working days to save a borrower’s buy to let portfolio from being sold at auction. The borrower needed to re-finance very quickly as their high street lender had appointed an LPA receiver following a dispute and a number of its properties were due to be sold within days. The loan, which was brokered by LINK Capital UK, was supported by security over a portfolio of 16 commercial and residential properties. Known for its ability to execute complicated bridging loans very quickly, Funding 365 previously completed a £6.2m semi-commercial bridging loan within just 1 working day of agreeing terms with the borrower. Funding 365 Managing Director, Mike Strange comments,”We are very pleased that we were able to help the borrower retain ownership of their property portfolio and allow them the time to re-finance with a term mortgage. This is just another example of the quick, tailored service that our broker partners have come to appreciate from us. Credit must equally go to the team at LINK Capital UK and to our solicitors who worked above and beyond to complete this case within such tight time constraints.” LINK Capital UK Managing Director, Theo Kemp comments, “As a professional finance intermediary we are always conscious of those lenders that say they can deliver but can’t as ‘computer says no’ or credit committee declines the case at the nth hour. Funding 365 is unprecedented in its professionalism, speed and integrity - delivering what the customer requires on time and at highly competitive terms - especially in this situation with the borrower being in receivership. Mike Strange and Eddie Boakye worked extremely hard with us and the customer to deliver a complex solution so quickly."

Funding 365 launches pledge to rebate auction property valuation fees Funding 365 has today pledged to rebate property valuation fees to increase cash flow for borrowers using its bridging products to buy property at auction between 25th January and 30th June 2023. The offer applies to Funding 365’s unregulated, first charge bridging loans up to £10 million in value secured against residential investment, semi-commercial and commercial property in England and Wales for 3-24 months. All of Funding 365’s bridging products can be used to purchase at auction and carry no admin fees, exit fees or early redemption charges. Funding 365’s loans are underwritten on a case-by-case basis. This offer applies to the property valuations instructed by Funding 365 only. The valuation fees must be paid up front as usual by the borrowers and will be rebated in full by Funding 365 within 24 hours of loan completion. Full terms and conditions can be accessed at www.funding-365.com/auction-valuation-fee-rebate-offer Visit www.funding-365.com/products for transparent product guides or speak to a Funding 365 underwriter directly on 0800 689 0650 for more information, quick answers and bespoke, credit-backed terms within just one hour. Head of Underwriting at Funding 365, Calum Waite, comments, “Recent interest rate rises have impacted the housing market and we will see the knock on effect of this on auctions in the coming months, with a squeeze on businesses’ cash flow. We hope that our pledge to rebate auction property valuation fees until the end of Q2 will help to mitigate this and support our property investors and developers to deliver on their plans.”

Funding 365 increases maximum loan term to 18 months Fast bridging lender Funding 365 has today announced the extension of their maximum loan term from 12 to 18 months, in response to demand from their broker partners. This increased loan term will apply to all of their bridging products with the exception of their Short Lease Bridge, which will remain at 12 months. This announcement comes just one month after Funding 365’s decision to officially increase their maximum loan size to £10million, and is part of their move to broaden their offering. Funding 365 Marketing Director, Laura Kendall comments, “At Funding 365 we’re always listening to our broker partners and striving to find new solutions to meet their clients’ needs. We identified longer loans as something that was being requested with increasing frequency. We pride ourselves on being extremely competitive, and with super low rates (from 0.65%pcm for residential and 0.75%pcm up to 70% LTV for commercial properties), plus now loans up to £10million for 18 months, we envisage that 2018 will continue to be a very busy year!”

INTEREST RATES LOAN SIZES LOAN TERMS LOCATIONS 3 to 24 months Across England and Wales £100,000 to £10,000,000 2 From 0.89% up to 65% LTV 1 LOAN USES FEES & CHARGES Buying commercial property incl. at auction Refinancing of maturing commercial debt Working capital for your business Arrangement fee: 2% Broker commission: From 1.5% (taken from the arrangement fee) Exit fee: None Early Repayment Charge: None (interest rebated on a daily basis for loans repaid after the 3rd month) Legal fees: At cost, provided upon application 5 Valuation fee: At cost, provided upon application 4 Light to medium property refurbishment 3 Permitted securities: Commercial properties, HMOs, buy to lets, student accommodation, holiday lets with no title restriction COMMERCIAL BRIDGE Vacant property in disrepair Property with potential environmental contamination Farms or agricultural property First charge unregulated loans only Properties in England and Wales only Adverse credit history considered UK residents and limited companies only This does not constitute an offer of financing. Heads of Terms and Loan Agreements will be provided by Funding 365 Limited on a case-by-case basis. Funding 365 Limited reserves the right to amend, suspend or terminate this product at any time and without notice. YOUR PROPERTY MAY BE AT RISK IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT. Owner residing above semi-commercial property PRODUCT CHARACTERISTICS PROHIBITED USES 1. Our 0.69% product rate is only available to properties with either (i) a blue chip tenant on a lease with five or more years remaining (no breaks); or (ii) more than seven individual tenants where rental income is relatively equally spread and a history of occupancy is available. Interest can be paid monthly (in full or in part) or rolled up and paid upon redemption. Gross LTV is calculated using the gross loan amount divided by the lower of the purchase price and valuation. Valuation is typically the OMV, although other measures may be used on a case-by-case basis. Higher LTVs are available with the provision of additional security (first or second charge basis). | 2. Larger loans considered upon application. | 3. Light to medium property refurbishment is defined as having no planning permission requirements. | 4. Valuation fee is required up front. | 5. Legal fees will be deducted from the loan amount. Your lawyer will be required to provide our lawyer with an undertaking to pay all legal fees in full. COMMERCIAL BRIDGE INTEREST RATE From 0.59% up to 60% LTV From 0.69% up to 75% LTV Interest can be paid monthly (in full or in part) or retained upfront LOAN SIZES £100,000 to £10,000,000 Larger loans considered upon application LOCATIONS Across England and Wales LOAN TERMS 3 to 24 months KEY INFORMATION Swipe across for key product information COMMERCIAL BRIDGE INTEREST RATES LOAN SIZES LOAN TERMS LOCATIONS 3 to 24 months Across England and Wales £200,000 to £2,000,000 2 From 0.99% up to 65% LTV 1 (1.5% broker commission) (2% broker commission) From 1.04% up to 65% LTV (2% broker commission) DOWNLOAD PDF PRODUCT SHEET INTEREST RATE From 0.69% up to 75% LTV 1. Our 0.69% product rate is only available to properties with either (i) a blue chip tenant on a lease with five or more years remaining (no breaks); or (ii) more than seven individual tenants where rental income is relatively equally spread and a history of occupancy is available. Interest can be paid monthly (in full or in part) or rolled up and paid upon redemption. Gross LTV is calculated using the gross loan amount divided by the lower of the purchase price and valuation. Valuation is typically the OMV, although other measures may be used on a case-by-case basis. Higher LTVs are available with the provision of additional security (first or second charge basis). LOAN SIZES £100,000 to £10,000,000 Larger loans considered upon application LOCATIONS Across England and Wales LOAN TERMS 3 to 24 months KEY INFORMATION Swipe across for key product information £200,000 to £2 million loan size Up to 24 months loan term Example uses: Property purchase (including at auction) Development exit Light to medium refurbishment Refinancing of maturing debt Working capital for your business Permitted securities: Commercial properties HMOs Buy to lets Student accommodation Holiday lets with no title restrictions Across England and Wales From 0.99% pm up to 65% LTV

Funding 365 completes £1.6m commercial bridge in just 3 days Funding 365 has completed yet another bridging loan in just 3 working days, to assist with the purchase of a commercial property with a strict vendor’s completion deadline, after the original lender amended their loan terms. Funding 365 has completed yet another bridging loan in just 3 working days, to assist with the purchase of a commercial property with a strict vendor’s completion deadline, after the original lender amended their loan terms. The security is a commercial unit occupied by a high street bank with a strong tenancy, which also benefits from planning permission to convert the upper floors into residential dwellings. Given the time constraints of the loan an off-panel valuation re-type was accepted. With a strong lease in place and a clear exit route, Funding 365 offered the borrower 72% LTPP at a rate of 0.85%pm. Funding 365 Director, Paul Weitzkorn comments, “We are very pleased that we were able to help the borrower save his purchase under such time pressures. This is just another example of the fast, tailored service that our broker partners have come to appreciate from us.” Alpha Property Finance Partner, Clive Liddelow adds, “The Funding 365 team and their solicitors performed admirably under extreme timing pressures to complete the deal on time and immediately understood the fundamentals and complexities of the deal. Alpha Property Finance together with our new strategic partner, LSH Property Finance, would have no hesitation in using Funding 365 and this form of loan structure again when there is an urgent acquisition deadline.”

LOAN INTEREST RATES PER ANNUM Gross loan to value: Residential Commercial 60% 65% 70% 75% 8.99% 10.49% 11.49% 9.49% 9.99% Prime Classic Complex CREDIT PROFILE No CCJs in the last 2 years (director or company) ​ All CCJs must have been satisfied at least 12 months prior to completion ​ No bankruptcy / IVA in last 3 years ​ If a company is being purchased, credit checks are applied to the acquirer and its directors ​ The tenant in the property must have a strong credit profile ​ For commercial premises, the remaining lease term should be at least 3 years unless, in the case of mixed usage property, the commercial element comprises less than 35% of the total property income ​ Any lease on the property should be on an arms-length basis to a third party with the rental income set at a market rate ​ The Property should not be deemed to be specialist in nature and should be a liquid property which would attract significant mainstream investor demand should it be marketed for sale in its current condition Up to 2 CCJs of less than £7,000 in the last 2 years (per director or company) ​ All CCJs must be satisfied at the completion date (completion proceeds can be used for this purpose) ​ No bankruptcy / IVA in the last 3 years ​ Where loan repayment is based on a development / re-development proposal ​ Where the loan otherwise does not fit the Prime product criteria Up to 5 CCJs in the last 3 years with a maximum value of £20,000 (per director or company) or, for owners of property portfolios worth > £2m, a maximum of 2% of the portfolio value ​ No bankruptcy in last 3 years This does not constitute an offer of financing. Heads of Terms and Loan Agreements will be provided by Funding 365 Limited on a case-by-case basis. Funding 365 Limited reserves the right to amend, suspend or terminate this product at any time and without notice. YOUR PROPERTY MAY BE AT RISK IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT. Funding 365 Limited is registered in England and Wales. Registered address: 20 – 22 Wenlock Road, London N1 7GU. Company Number: 8488034. Sept 2019. 1. Gross LTV is calculated using the gross loan amount divided by the lower of the purchase price and valuation. Valuation is typically the OMV, although other measures may be used on a case-by-case basis. Loan interest rates outlined above include a monthly pay rate, retained interest and SONIA. Minimum monthly pay rate of 4.50%. 3m SONIA has a minimum level of 3.5% pa. Indicative pricing based on Prime credit profile. | 2. Larger loans considered upon application. | 3.Paid from arrangement fee. | 4. Only offered on residential properties where the property is deemed to be highly liquid and in very good internal and external condition. | 5. Only offered for commercial premises where a Strong Tenant Covenant exists. INTEREST RATES LOAN SIZES LOAN TERMS LOCATIONS 36-60 months Across England and Wales £100,000 to £2,000,000 2 From 9.99% up to 70% LTV 1 FLEXIBLE 3-5 YEAR INTEREST RATE From 0.59% up to 60% LTV From 0.69% up to 75% LTV Interest can be paid monthly (in full or in part) or retained upfront LOAN SIZES £100,000 to £10,000,000 Larger loans considered upon application LOCATIONS Across England and Wales LOAN TERMS 3 to 24 months KEY INFORMATION Swipe across for key product information FLEXIBLE 3-5 YEAR PRODUCT INFORMATION HMOs & residential accommodation Security: First charge on commercial or residential property in England and Wales (personal guarantees required). Arrangement fee: 2.5% Broker commission: From 1.5% 3 Loan Purpose: Purchase, re-mortgage or capital raise Adverse credit: Three product types are offered for different credit levels (see table below) ACCEPTABLE PROPERTIES Retail with or without living accommodation Offices Purpose built student accommodation Warehouses and light industrial units Repayment Charges: 3%, 2%, 1% (Year 1,2,3+) or 0% if loan is repaid in last month of scheduled term. PRODUCT INFORMATION Additional loading may be applied to the interest margin as follows: Loan term available: 3 years Repayment: Loans are offered on an interest-only basis Affordability: 110% of monthly payment amount (monthly pay rate) calculated after using a Libor stress of 1.0% Minimum trading period: None ADDITIONAL MARGIN LOADINGS House of multiple occupation - 0.35% Loans under £200,000 - 0.50% Classic and Complex credit - upon review DOWNLOAD PDF PRODUCT SHEET FLEXIBLE 3-5 YEAR

Funding 365 and Adapt complete £3m of complex bridging loans this month Fast bridging lender Funding 365 and award winning short term finance broker. Adapt have together provided borrowers with bridging solutions worth over £3million in less than 4 weeks. Funding 365 have been providing Adapts clients with bridging loans since late 2015 and their relationship is forged through a shared focus on always delivering the best possible solution for the borrower. One of the bridging loans involved both first and second charges secured against a commercial property and strict timings, yet the borrower received a rate of just 0.75% per month. Another loan involved a portfolio of 9 BTL properties in London worth £3.1 million. Funding 365 Marketing Director, Laura Kendall explains,Our working relationship with Adapt feels so natural as they share our core values and our nimble way of working. Ultimately it benefits the borrower when their broker and lender work together to provide the best financial solution in a seamless, pain-free process. Adapt MD, Jordan McBriar adds, Yet again, great work from the whole team at Funding 365, kickstarted with a common sense approach and thorough packaging from Adapt.

London property - clear and present danger We have previously written a detailed article about the risks that we currently see in the London property market. As an attention grabbing summary, we stated that there is a high chance that the London property market could see a price collapse – and that this collapse could be swift and dramatic. To distill our analysis into a few bullet points, we stated: The London property market is supported by (pre-dominantly) Asian investors (it certainly isn’t supported by the City’s investment bankers any longer!). These investors are pre-dominantly investors who are either (a) looking for a safe home for their funds; (b) speculating in the market because prices are rising; or (c) long term buy to let investors. Buy to let investment in Central London no longer makes any financial sense. In real terms (after inflation) and after taxes and costs, most rental property does not generate a positive return (in other words, the investor is suffering a loss). If interest rates rise: - UK based buy to let investors will almost certainly start to suffer increasing losses on London rental property due to higher mortgage payments. - The exchange rate between Sterling and Asian currencies will start to strengthen meaning that it becomes more expensive for Asian investors to purchase London property so continued high levels of investment are unlikely. The maximum LTV at 0.75%pcm is 60% although higher LTVs will be considered if additional security is provided. Finally, the cherry on the cake, the UK Government is raising taxes on foreign investors (capital gains are now applicable on foreign property owners who dispose of UK property) and potentially on domestic buy to let investors (a mansion tax is still being debated). The problem that we were concerned about is fairly simple – should Asian investors start to pull out of London property and prices begin to fall, will this lead to an avalanche of other Asian investors heading for the exit (they are, to a significant degree, speculators after all)? You do not need to have a PhD in financial economics to understand that a bubble gets inflated slowly, but bursts quickly. The reason for this, as Warren Buffet says, is that confidence is gained one person at a time, but people panic together. I’m also sure that we have all heard the financial adage “don’t panic, but if you are going to panic, panic before anyone else”. Therefore, if you believe that the London property market is supported by foreign investors and speculators, then you should be very concerned about a sign of a slowdown as this could herald the point at which some (savvy) investors decide to offload their entire London property portfolio (and ring the bell to signify the top of the market). Who is going to buy these properties that rent out for a loss when prices are slipping? Answer – no-one, the prices have to fall until the rental return makes sense. Having written the previously mentioned article at the back end of 2013, I thought it would be interesting to see how the fact pattern has changed in mid-2014, and whether we think the tipping point is close. Firstly– how are London property prices faring? Badly, according to many news outlets – “asking prices fall 0.5% in June” according to Savills, while in July a RICS survey found that (by a majority of 10%) their surveyors thought that London prices would fall over the next three months. Secondly– How is Sterling faring against key Asian currencies? Very well (which is bad for London property). The graph below shows how the exchange rate between Sterling and the Chinese Yuan has appreciated steadily from about 9.2 last summer to around 10.6 today. What this means is that it is now about 15% more expensive for a Chinese person to buy a London property than it was a year ago just because of currency appreciation. If you also take into consideration the 16% growth in London house prices during that period (according to Rightmove), it is actually over 30% more expensive. Thirdly– are interest rates going to rise soon? The consensus is now “yes, and sooner than expected”. Interest rate increases this year are now perceived to be highly possible, if not probable. The recent jump in UK inflation to 1.9% has further increased expectation of early rate rises. So, in summary, if you believe that the London property market is supported by foreign investors (the evidence is overwhelming), that some of them will run for the hills when the market turns (the speculators will undoubtedly) and that the current interest rate / exchange rate dynamic will continue to make London less attractive as an investment and bring the tipping point closer – then you, like us, should worry. Mike Strange Director, Funding 365 Limited michael.strange@funding-365.com

Funding 365 secures £200m funding facility Funding 365 has completed an additional funding line of over £200m with a global investment bank. The new facility is aimed to boost Funding 365’s lending capabilities alongside its other institutional lines and in-house funds across unregulated residential, semi-commercial, and refurbishment bridging loans. The bridging and development lender will retain its principal-led funding model, enabling it to continue underwriting in-house. Mike Strange, director at funding 365 comments (pictured above), commented: “Our new facility will allow us to significantly readjust our interest rates across our residential and refurbishment products — watch this space.”

Funding 365 reveals new business development manager Fast bridging lender Funding 365 has this week expanded its team with the appointment of Dawn Trustam as Business Development Manager Dawn’s career spans 2 decades in mortgages and bridging at firms including Shawbrook Bank, Barclays Bank, Commercial First Mortgages and Mortgages for Business. Her priorities are to deepen Funding 365’s relationships with its existing broker partners as well as introduce new bridging brokers to its panel. Funding 365 Director, Mike Strange comments, “We’re delighted to be welcoming Dawn to the Funding 365 team. We’ve spent the past year developing Funding 365’s products with our broker partners and we’re confident that we have an unparalleled proposition - honest bridging loans from 0.65%pcm at a speed that cannot be beaten. Now with our team in place we’re ready to service all of the brokers who believe that getting fair, competitive loans for their bridging clients is their top priority.”

Funding 365 Delivers £3.2m 75 percent LTV finish & exit facility Funding 365 has executed a £3.2 million 75% LTV finish and exit loan at a rate of 0.78% per month - with no admin or exit fees - to complete the development of 14 new build houses in Lincolnshire. The 12 month facility, introduced by Adelpha Capital, frees up cashflow for the experienced developer to begin work on their next development project whilst they complete and market their existing one. The 3 and 4 bed houses are at varying degrees of completion, from shell condition through to almost finished. Funding 365’s expert underwriters worked closely with all parties to craft the highly tailored solution, delivering £2.2 million on day one and £900,000 in further advances. This finish and exit loan is one of the many uses for Funding 365's versatile Light Development product, which offers bespoke funding solutions of up to £5 million on properties across England and Wales, with no admin fees, exit fees or early redemption fees. All of their simple, transparent products can be viewed on their website www.funding-365.com/products Read the full story here: https://www.developmentfinancetoday.co.uk/article-desc-8914_Funding%20365%20completes%20%C2%A33.2m%20finish%20and%20exit%20facility%20for%20Lincolnshire%20residential%20development

Funding 365 and Mantra Capital save auction purchase in just 3 days Last week Funding 365 completed on a bridging loan brokered by Mantra Capital in just 3 days, to rescue a client’s auction purchase of 3 flats in East London. Funding 365 stepped in to deliver the £270,000 to a tight deadline after the original lender pulled out at the last minute due to one of the flats being in an unlettable condition. As timing was critical, Funding 365 arranged for a valuer to be on site the day after application and completed the deal with only a verbal valuation figure confirmed. Post-purchase the client plans to fully refurbish the flats and resolve a planning issue before refinancing on to a buy to let mortgage. Funding 365 Senior Underwriter, Calum Waite, comments, “We pride ourselves on being able to turn around loan applications in rapid time - no matter how complicated the securities or unusual the circumstances. However, we can’t do this alone - thanks to our legal and valuation partners, and of course Mantra Capital for their assistance in progressing the loan to completion with time to spare.” Nerpal Singh, Commercial Relationship Manager at Mantra Capital comments, "We were under considerable pressure when the original lender pulled out of the transaction and left the client in a difficult situation. However, due to our experience, knowledge of the market and close working relationship with Funding 365, coupled with their pragmatic approach, we were able to find an acceptable solution for our client. Thanks to everyone involved.”