Why would I borrow from Platinum Mortgage Securities and not a bank?
It’s all about speed of credit decision and funds advance, flexibility of terms, and a collaborative journey to exit. As responsible lenders, we do undertake a thorough due diligence but we don’t blindly follow a tick-all-the-boxes approach. Discretion and common-sense guide all that we do.
How long does a loan application take to approve and payout?
We’ll provide a credit decision in principle and indicative pricing and terms within a day. Time to payout of funds is usually between one and three weeks. This allows for completion of our due diligence, including professional property valuation, and preparation and signature of agreements.
What are the key credit assessment criteria?
As asset-based lenders, we are focussed on the character of the borrower, the purpose of the loan (is it legitimate and commercial), the nature and value of the security property (can it be readily sold at fair value if required), and the quality of the loan exit (is there evidence of several feasible options).
What are the costs involved in a Platinum Mortgage Securities loan?
We price our loans accurately for the credit risks as we assess them. Depending on the loan type and term, the loan to value ratio, and the quality of the exit plan, our all-in effective cost to borrower ranges from 7% to 15% per annum.
What are the payment options?
All our loans are interest only, either serviced monthly or, to improve cash flow, rolled up and capitalised to the loan principal and paid at settlement. Loan capital can be drawn down in tranches and repaid in lump sums on terms agreed at inception.
What are the risks involved?
The key risks of course are failure to a) service a loan on the basis agreed or b) settle the loan at end of term. In these situations, the borrower will incur costs and charges and ultimately carries the risk of losing their security property. It is essential to have several feasible exit strategies in place.
