The loan lowdown: February 2024

With the summer holidays well behind us, February is always the month things start to ramp up in the property market, and this month has for sure been another busy month securing high-quality loans at SCP.  

Here are some of our most recent deals: 

• Refinance / equity release – We helped a company with the refinance of an existing loan with another lender. The remainder was used to assist with the construction costs at the security property; a road front site in Te Atatu Peninsula. The security property had a consent in place for six townhouses comprising two road front freestanding townhouses and four rear positioned attached townhouses. The loan term was eight months, with a 42% LVR and an interest rate of 9.99% plus fee.  
• Refinance – We supported a request to refinance an existing loan with another lender and the remainder to be used to assist with an industrial project in Upper Hutt. The security property is a recently renovated 430 sqm two-level dwelling built circa 1911. The loan term is 12 months, with an LVR of 61% and interest rate of 10.49% plus fee. 
• Construction support – We are supporting a company with the construction of a five bedroom, five ensuite executive residence in Christchurch. The loan term is 12 months, with an LVR of 60% and an interest rate of 11.99% plus fee. 

Whilst the above loans are all unique, they all will have started with an application to SCP detailing the following:  

• LVR. The ratio between the size of a property’s mortgage and its resale value, known as the loan-to-value ratio (LVR), ensures we have a buffer in case of any headwinds. In your application, we need to know how much your client wants to borrow and what their security is worth.
• A clear exit. We are a short-term lender, so we must also know how and when the borrower is going to exit their loan with us. This could be through selling the property or refinancing with a traditional bank. We also need to ensure they’ll be better off for it. 
• The borrower’s situation. The key thing we want to know is if the borrower will be in a better position if they have a loan with SCP. If you can outline their background and how this is the case, then we want to hear about it. 

*All pricing is on a deal-by-deal basis, please call for any pricing queries.

If you have a loan that you think fits SCP lending, or if you’d like to workshop a deal with us, please give us a call on 09 535 2239, email loans@scpartners.co.nz, or reach out to your SCP business development manager.