Signature Property Finance has completed a £108,750 revolving credit facility (RCF) to support an experienced project manager and property investor in building his portfolio across South Wales, providing flexible funding for strategic acquisitions and refurbishments.
Introduced by Joshua Good of SoFinance, this deal demonstrates Signature’s commitment to supporting investors with clear strategies and proven capabilities, particularly through flexible facilities that enable responsive portfolio management.
Supporting strategic portfolio expansion
The borrower operates as a self-employed project manager and cost consultant, bringing professional construction expertise to his property investment activities, with a current portfolio of four properties generating a stable monthly rental income.
The RCF is secured against an unencumbered three-bedroom terraced house, valued at £145,000, representing a 75% loan-to-value.
The facility enables the borrower to acquire properties requiring modernisation, complete targeted improvements and refinance onto buy-to-let mortgages. This acquire-improve-refinance model allows the facility to revolve as properties exit through refinancing, creating a sustainable growth mechanism for the portfolio.
Well-positioned security in growing South Wales market
The property is located near Caerphilly, approximately 20 miles north of Newport and Cardiff, offering fluid connectivity to these major employment centres. The area offers affordable property prices for both purchase and rent, with good demand, making it attractive for value-add investment strategies.
The security property is a two-storey, three-bedroom mid-terrace in good condition, currently let on an assured shorthold tenancy. With a floor area of approximately 990 square feet and an EPC rating of D, the property provides solid rental income to support the facility structure.
Clear structure with multiple exit routes
The primary repayment mechanism is through refinance proceeds as acquired properties complete their improvement programmes and exit onto buy-to-let mortgages. The facility structure allows it to revolve as capital is recycled, supporting continued portfolio growth.
Secondary exit routes include refinancing the security property itself, which achieves comfortable interest cover based on current rental income. The borrower’s substantial household income, combined with cash reserves, provides additional repayment capacity.
Joshua Good of SoFinance commented: “Working with the team at Signature and Josh in particular, on this RCF has been excellent throughout. This product gives our client the flexibility they need to act quickly on opportunities while maintaining financial discipline through the revolving structure.
“This borrower has the professional expertise and financial strength to execute his strategy effectively. Signature’s understanding of how experienced investors operate, combined with their straightforward approach to facility structuring, makes them ideal partners for this type of transaction.”
Josh Barrett, Relationship Manager at Signature Property Finance, said: “This product exemplifies the type of professional investor we’re keen to support through our revolving credit facility. We’re backing someone with professional construction knowledge, a modest but well-managed existing portfolio and a clear strategy for value creation.
“The South Wales market offers excellent opportunities for investors who understand property improvement and local rental dynamics. The revolving facility gives this investor the financial agility to capitalise on opportunities as they arise, while the facility remains secured against quality collateral.
“Supporting investors who improve housing stock while building sustainable portfolios through disciplined financial structures is exactly what we aim to achieve – it’s been immensely gratifying to provide this facility. We look forward to supporting Joshua’s client in the future and this portfolio’s continued growth.”