Recognise Bank has agreed a £2.6 million refinance package for Caldew Court, a 35-unit mixed residential development in Carlisle, consisting of 15 two-storey three-bedroomed townhouses, 15 two-bedroomed apartments and five one-bedroomed apartments.
The borrower, Wayne McKnight of McKnight and Son Builders Ltd, wanted to refinance an expiring loan. Steve Dunne of Lakeland Commercial Finance, the company’s funding adviser, introduced the deal to Recognise Bank and worked with Business Development Manager Ian Fields to complete the transaction.
Caldew Court was perfect for Recognise Bank’s Professional Buy-to-Let (PBTL) loan, which is specifically designed for property investors with a portfolio of four properties or more. Recognise provided a five-year fixed interest only PBTL loan for £2.6 million at 75% LTV, with a capital and interest repayment slice in years four and five.
Steve Dunne, Director of Lakeland Commercial Finance Ltd, said: “This was the first deal we’ve completed with Recognise Bank and we found its PBTL product was ideal in this instance; it does what it says on the tin. As with most cases there were minor challenges along the way, but the deal got over the line in good time thanks to the smooth legal process. We have already placed further Lakeland Commercial customers with Recognise and look forward to building on our relationship with the Bank going forward.”
Ian Fields, Business Development Manager at Recognise Bank, commented: “This is another example of how our PBTL product can be used. Despite the large number of units within the development, our understanding of the sector and our one-to-one relationship with Steve Dunne meant we were able to provide his client with the right refinance deal.”
Recognise Bank was created to provide SMEs with digitally enabled, relationship-led banking, offering a range of unregulated lending options via a network of relationship managers across the UK. Despite only receiving its full authorisation in September 2021, Recognise has already achieved £100 million in lending. In September 2021 it also launched a range of Personal Savings accounts, which has so far attracted £95 million in deposits, launching Business Savings accounts in April this year. It recently announced fresh capital of £8.7 million following a successful fund-raising round, to be used to develop its digital capability and support further lending.