These are secured on land and buildings.
Advances of between two thirds and three quarters of the value are made based on
the finance providers own valuation which tends to be below market value.
This type of funding only provides long-term capital although it is secure and is
provided at competitive rates.
Any long-term commitment requires careful consideration as it can be inflexible
and it is not a quick alternative as property valuations and the release of funds
can be a lengthy process.