By Aisling Finn on Tuesday 25 August 2020
Since completing its first loan-on-loan facility in 2015, OakNorth now has over £300m of loan-on-loan facilities on its books.
The pot of cash will be used to support Ultimate Finance’s loan book and provide short-term funding as well as helping the alternative lender to deliver its government-backed Coronavirus Business Interruption Loan Scheme (CBILS) loans.
Founded in 2002, Ultimate Finance has over 2,500 companies on its books, with a specific focus on property, and, in the last four years alone, has helped to complete over £90m in bridging facilities.
Josh Levy, CEO of Ultimate Finance Group, said: “Bridging finance is a significant and vital source of capital to the UK property market, particularly given the funding void caused by current market conditions.”
“We see a clear need for bridging finance in the market and look forward to working closely with the team at OakNorth Bank to take advantage of the opportunities ahead, aided by OakNorth’s deep understanding of the property market.”
Since its launch in 2015, OakNorth has completed over £300m loan-on-loan facilities and was the first challenger bank to reach profitability over two years ago now and just three years after it first opened its doors.
Alex Rimmer, debt finance director at OakNorth Bank, said: “Loan-on-loan facilities allow us to access different clients and geographic locations which we might not have access to typically, so will continue to be a key growth area in our portfolio.”
“There is a huge gap in the market for facilities below £35m such as this one, so this creates a significant opportunity for lenders like us. Despite ongoing economic uncertainty due to COVID-19, the UK property sector has fortunately remained stable with both property prices and demand up year-on-year.”