In a period of rising interest rates, developers with large portfolios are struggling to refinance their current facilities or release equity.

The new flexi-term offering — which offers a fixed rate from 10.99% pa — aims to provide a solution for both, with a loan term of up to 24 months and the option to extend for a further year.

The loan has no ERCs, which allows the client to sell the properties or part of the portfolio during the term.

The product also removes the need for a stress test, typically required by BTL products, which can sometimes impact the viability of term finance.

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D’mitri Zaprzala, CEO at Avamore (pictured above), commented: “Just like we did with part-complete development, we’re hoping that this product will support a greater portion of the market at a time when it’s most needed.

“We’re seeing an increased number of enquiries from those looking to refinance due to unexpected challenges that can arise and, with that, there’s a distinct need for a product that can adapt when this occurs.

“Instead of facing the current struggle to refinance when approaching the end of a loan period, those with a borrowing requirement which doesn’t suit traditional term debt can now make their finance adapt to fit them, instead of the other way around. 

“Flexi-term is just another step we are taking to inject the market with more innovation. 

“In short, we’re continuing to do what we’ve always done — just better.”

Avamore also offers development, bridging, refurbishment and part-complete development finance, and recently entered the PBSA market.