How it works

Navigating Our Loan Facility: A Step-by-Step Guide

1. In-Principle Offer Letter

  • Once we've agreed to extend a Loan Facility to you or your broker, we'll issue an "In-Principle Offer" letter detailing the main terms of the proposed facility.
  • Acceptance Window: You have 14 days to accept this offer. Acceptance can be communicated in writing or via email.
  • Next Steps: Upon acceptance, you will need to provide us with your solicitor's contact details so our legal team can request a "Legal Costs Undertaking."

2. Understanding the Legal Costs Undertaking

  • While our legal fees are generally covered by our "Arrangement Fee" upon completion, you're responsible for these costs during the processing phase.
  • Procedure: Our solicitors will request an undertaking from your solicitor before commencing any work.

Cost Breakdown:

  1. Up to 0.5% of the first £200,000 of the Loan Amount.
  2. 0.25% for any Loan Amount exceeding £200,000.
  3. Additional VAT and disbursements apply.
  4. Rates are charged at £295 per hour, with a minimum fee of £1,500 + VAT.

Important: Work begins only after receiving the undertaking.

3. Initial Drawdown Process

  • Funds will be transferred from our solicitors to yours to ensure all legal charges and securities are in place on the "First Drawdown Date."
  • Documentation: You'll receive an Opening Statement and an invoice for the Arrangement Fee via email. Typically, this fee is deducted from the "First Drawdown Amount."
  • Interest Payment Schedule: The "First Drawdown Date" establishes your "Interest Payment Date," which recurs monthly until the loan is fully repaid. This date also aligns with any additional drawdowns you request.
  • Monthly Statements: These will outline the upcoming month's interest payment and any other pertinent details.

4. Drawdown Scheduling

  • Advance Planning: We ask you to provide a projected drawdown schedule before your project commences. While we understand that schedules can change, this helps us manage cash flows effectively.
  • Notification: A week's notice via email is required for each specific drawdown request.
Get in touch

Get in touch

Aspen Heights, Carleton Hill Road, Penrith Cumbria CA11 8WH

Tel. +44(0) 7967 173666

Get in touch

Aspen Heights, Carleton Hill Road, Penrith Cumbria CA11 8WH

Tel. +44(0) 7967 173666
Email. info@pallisterco.com

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