On all our lending areas we have introduced a guideline/framework for quick reference within each section.

Demand for new business from lenders continues to intensify which is positively putting pressure on lenders to reduce their rates and increase their maximums. There is a wealth of lenders moving up to 70% loan to gross development value compared to the traditional 65%.

1. One our existing development finance lender’s offering up to 95% loan to cost, 80% gross development value and loans from £5,000,000 upwards.
2. A new development finance lender offering up to 95% loan to cost, 75% gross development value and loans from £100,000 to £10,000,000.
3. Lenders continue to innovate with the launch of a new buy to let development exit product which allows up to 75% loan to value day one minus costs to complete on a buy to let rate where up to 10% of works remain to complete the project.

• We welcome the launch of new fixed rate options from many of our lenders which will help in the short term and long term give certainty on loan and interest payments in a period when costs are rapidly increasing.
• We are also delighted to announce that several of our lenders have increased interest only options to 75% loan to value up to 30 years which comes with the additional benefit of being available to hotels and bed and breakfast alongside mainstream commercial classes.

• Supporting trading businesses with their property needs is a genuine passion of ours. Its fair to say the high street banks were absent for new business for quite some time after covid.
• Over the past few months, we have seen a renewed appetite from our lenders offering great rates however being much more commercial i.e., not requiring 2 years trading accounts and instead relying on forecasts where the current business is performing.

• Rates continue to improve in the marketplace, and we are now seeing bridging rates starting to look like buy to let rates with rates of 6% (0.50% a month) to 8% (0.66% a month) for the upper loan to values i.e., 75 to 80%. This makes raising capital against completed stock on developments highly competitive.