Are you a housebuilder or developer looking to grow your business?


Housebuilders’ head office operational costs have invariably been funded by the business owners, project profits or third party investors.   Current market conditions favour housebuilders, but as ever it's about maximising the opportunity when it presents itself. 

Most development finance lenders allow a level of management team overhead to be run through the SPV cashflow, but it's usually not enough to fully fund a growing business. 

The availability of growth capital for this purpose has improved, and recently there have been individual investors and established private equity funds investing in this sector. 

Striking a balance between access to capital and maintaining control is key. 

These investments are being used by developers to open up new sites, amass land banks for a consistent pipeline, or to act as the equity needed to access cheap 60% LTC senior debt. 

It's also useful to be able to pre-fund a growth in full-time head count, to lead to more development activity. 

Investment amounts vary, from a few hundred thousand pounds, into the millions, with investment terms ranging from 1-5 years.  

Investor expectations consist of two components: 

1. An annual coupon or interest rate, which can be serviced monthly or rolled up.
2. Capital return, which can be an IRR or multiplier based model, depending on the profitability of the business. 

The investment partner doesn't have to be a friend for life, but just for a defined period. Ensuring that their role and input is clearly defined is crucial, as the primary role of the capital is to grow the business, not to run it. 

If this sounds like a means which could help you grow your business, then get in touch to discuss specific figures relative to your business, and your aspirations.

Jamie Davidson, Managing Director

07919 863 034

Success Breeds Success

Photo by claudiodivizia/iStock / Getty Images

After completing a deal for a client we were grateful to receive an introduction to one of their friends, a real endorsement of having done a good job previously. 

The new borrower needed finance to permit the refurbishment of a residential property that had suffered fire damage. As a professional landlord, borrowing in his sole name, the borrower had built a high yielding portfolio of residential investment properties so location and asset quality were a challenge for most lenders. 

Securing competitively priced finance was difficult and the lenders the borrower had approached were unwilling to lend to the asset in its current condition. Being able to help clients add value to properties by securing flexible finance is something we enjoy. 

The buy to let landlord had bought the property cash at auction and quickly needed finance to ensure the property became revenue generative quickly. Within a week of being engaged we had credit backed terms for the loan and had progressed to valuation stage. 

We completed a whole of market search and recommended a ‘new to Scotland lender’ who were able to quickly grasp the transaction. We were able to prove the lenders appetite for this transaction by cross checking with heads of terms from another recent completion with this lender. By negotiating hard for the borrower we managed to secure an interest rate and arrangement fee much better than the market rate quoted by this lender. This reduction in cost more than covered our fee. 

Brokering the transaction at Conduit Finance, Edward Page said; “It was a pleasure to assist this client and advise on the best funding option.  I worked closely with the client to drive the process forward and arrange all supporting documentation, the valuation and legals. All parties were delighted to complete the process quickly to ensure the client was on site promptly.” 

We have been engaged to source and deliver the long term buy to let finance which, with interest rates an all-time low, will be on competitive terms.

Conduit Finance is from the outset, focused on providing a clear process, transparency of information flow and fees charged which leads to reduced deliverability risk and high levels of borrower satisfaction. 

Get in touch with a member of the team to access the best cost of finance from new and established lenders:

Jamie Davidson | Loans over £10m and restructuring |
Andy Lawson | Loans over £1m |
Edward Page | Loans under £1m | 
Sean Crombie | Business Development |
Mark Reidy | Business Development |

The Seven Day Bridge

Having been referred to us by a previous client, we were engaged by our client to raise funds against an unencumbered property within extremely tight time scales.  The money was required to complete a purchase on a premium London off-plan apartment, within the agreed purchase date.  Unfortunately our client was unable to unwind existing investments as quick as was hoped, and turned to us to find a viable and deliverable solution to plug this funding gap.

Taking into account the prime location and nature of our client’s other properties, we decided to use a new to market family office we had met a week earlier.  The requirement for funds was needed within 10 working days, and we knew this would be deliverable given the lenders unique structure and their ability to make decisions and to deliver quickly.  

Having raised funds across two unencumbered properties, our client was able to complete the purchase on time with no further cash required.

By constantly scoping the market for new lenders, we were able to quickly make a decision on the most viable route given this specific requirement.  The £1,000,000 fund raise was met within the client’s tight timescales using a previously unknown lender.  The greatly reduced timescales were deliverable due to the lenders tight company structure, taking only seven days from heads of terms to final drawdown.  

Sean Crombie commented that “The ability to constantly refresh which lenders we have access to allows us a unique perspective on what is deliverable.  We are always striving to be at the forefront of the property finance industry.”
Having delivered the funds required within the desired timescales, our client was extremely happy with not only the solution delivered, but our transparency from the very beginning of the process on what could be achieved, and the likely costs involved.  

As a company we pride ourselves on a no surprises ethos, which ensures clarity as well as deliverability.    

Should you have a time pressured requirement for funding, do not hesitate to get in touch with a member of the team.

Jamie Davidson | Loans over £10m and restructuring |

Andy Lawson | Loans over £1m |

Edward Page | Loans under £1m | 

Sean Crombie | Business Development |

Mark Reidy | Business Development |

Residential Development Finance – Latest Funding Prices

Having returned to the UK after working overseas, it is clear that the property development finance market is quickly evolving.  The widespread under supply of housing is supported by huge demand from occupiers and investors alike. 

The various sub-sectors are all equally active, with student housing and private rented sector both at the forefront.  As such the lending market is evolving by the day, with more and more liquidity coming into the market.  Loan to costs are increasing, while pricing is compressing.

We have seen an increase in the number of lenders active in this sector.  Retail banks are providing rates as low as 2.50%, and stretched senior lenders can provide attractive loan to cost facilities at 90%. 

This week we have received several telephone calls from newly active lenders looking to deploy capital into the UK residential development finance market.  Most of these lenders are backed by private equity funds or family offices seeking income yield.

Lender type                    Loan to cost                Lenders fee             Rate pa              Exit fee
Family office                    100%                            2.00%                       7.00%                 0% of profit
High LTC 1                       90%                             1.00%                        10.00%                1.00% of debt
High LTC 3                      85%                              1.50%                        6.50%                 1.00% of GDV
Lean pricing 1                  65%                              1.00%                        3.00%                 0.00%
Lean pricing 2                 50%                             0.50%                        2.50%                 0.00%

2016 is likely to be an active year for lending in the UK, with 2015 having seen the highest levels of property finance since 2006.  We would anticipate that there will be an inevitable increase in the lenders risk appetite, and a reduction in the net cost of finance as lenders compete for transactions.

If you have any requirements we can directly quote for, then please do not hesitate to get in touch with me by email or phone below.

Sean Crombie
DDI: 0131 564 0274
M: 07595 520 577

Brokers Love Conduit

In January 2016 we successfully completed a land bridge within a three week window for one of our valued introducers.

The facility was for £4,000,000, secured by a residential development site in England.  Our client was a house builder who was about to lose the site, along with the £2.5m profit that went with it.

Conduit’s Andy Lawson worked around-the-clock with the introducer to quickly pull together the due diligence pack and secure heads of terms that the borrower was keen to progress with.

The broker said, "Despite the complexity of the deal and very tight completion deadline, Conduit worked tirelessly to complete the facility for a very satisfied client."  Conduit Finance Managing Director Jamie Davidson commented, “This is the type of deal we enjoy delivering for our introducers.  We never circumvent introducers and welcome the opportunity to work with more of our partners in the future.“

Did we mention the broker received £32,000 for the introduction and was paid same day?

If you or your clients have a time pressured situation, then we are here to start early, finish late and work weekends to make it happen with our many sources of lending.

Jamie Davidson | Loans over £10m and restructuring |

Andy Lawson | Loans over £1m |

Edward Page | Loans under £1m | 

Sean Crombie | Business Development |

Mark Reidy | Business Development |

Buy to Let Mortgage - Limited Edition Best Buy

Giving landlords peace of mind, this is the market leading, longer term fixed rate available for buy to let mortgages.  Limited edition, so please contact us to register your interest while stocks last.

  • 5 year fixed rate at 3.99%.
  • Available up to 80% Loan to Value, allowing clients to expand or improve their portfolio.
  • Rental stress test at only 3.99%, even at 80% LTV to get more from the rental.
  • Free standard legal fees.
  • Reduced completion fee of 1.5% (no minimum) added in – even if takes above 80% LTV.
  • Revert rate – standard variable rate minus 1% - currently 3.98% with no tie ins when fixed rate ends.
  • No minimum income, income from rental acceptable – professional landlords.
  • No portfolio limits.
  • To 75% any form of capital raise options include business purposes, debt consolidation etc. to 75%.
  • To 80% anything property related including reducing residential, home improvements to other properties, purchasing new properties, transfer of title.

Please contact Stuart Cardozo on 0131 564 0172, or email for more information.

Price Update - Residential Buy to Let Portfolio Finance

Residential Buy to Let Portfolio Finance

This lender has extremely competitive terms for financing a portfolio of buy to let properties under one global facility

  • 3.79% over 3 month LIBOR
  • 3,4 & 5 year fixed rates also available.
  • 1.5% fee, interest only available.
  • Competitive rental income coverage, up to 60% loan to value.
  • Higher LTVs available for higher margin above 3 month LIBOR

Please contact Stuart Cardozo on 0131 564 0172 or email for more information.

Price Update - 2nd September 2015 - Expat Buy to Let, Commercial Investment and Development Finance

Please find below the latest product prices from Conduit Finance.  Of particular note is the Expat Buy to Let Mortgage, we recently completed a deal using this lender and assisted a client who was struggling to find a lender in the UK.

Expat Buy to Let Mortgages

Available to overseas clients with no current credit in the UK for the purchase of Buy to Let and second homes.  We recently completed a deal using this lender. The borrower was a solicitor based overseas who was struggling to secure lending despite having substantial net worth.   

  • Arrangement Fee 1%
  • Variable Rate of 4.50%
  • Interest only repayments
  • Loan term 20 years and an Loan to Value of 75% 

Contact Ed Page page for loans below £1m and Andy Lawson for loans above £1m.  

Call 0131 564 0172 or email or 


3.0% Interest Rate for Residential Development Finance 

Prime pricing available for well located sites at a moderate loan to cost 

  • Heads of terms in 3 days 
  • Lenders fee from 0.5% to 1.0% 
  • Interest rate from 3.0% to 3.5% 
  • Loan to cost up to 65% 
  • Exit fee 0% 
  • No personal guarantees 
  • Completion in 6 to 12 weeks 
  • All we need to determine if this pricing can be achieved is a cashflow appraisal. 

Please contact Jamie Davidson for loans of £5m or more, Andy Lawson for loans between £1m and £5m and Edward Page for loans below £1m.   Contact, or or call 0131 564 0172.                   


Commercial Investment Facility

New to market lender offering gearing up to 70% and pricing from 2.60% over cost of funds

  • UK Wide
  • Office, Retail, Industrial and Leisure
  • £2m - £15m
  • Loan to Value up to 70%
  • 5-20-year term
  • Long-term amortisation profile
  • 1% Arrangement Fee
  • No personal guarantees

Call Andy Lawson on 0131 564 0172 or email 


Price Update - 24th August 2015 - RPD and Buy to Let

100% Residential Development Finance without Personal Guarantees 

Private debt lender with considerable experience in the sector is looking to deploy capital in to projects with a 25% min net profit on cost. 

All purchase costs and build costs lent
Experienced developers only
Lender charges a flat interest rate and a % of profit equating to a total of 20%-30% of profit
Developer retains 70% + of the profit with any upside on projected GDV retained by developer
Scotland preferred but other locations considered
Loans from £1m to £10m
Loan term from 12 to 24 months 

Please contact Jamie Davidson on 0131 564 1970 or for further information.

Buy To Let Finance, 80% LTV with £995 fee

Lender providing highest available loan to value for buy to let purchase and refinance

5 year fixed rates available, security with interest rates forecast to rise
Available to experienced & first time landlords
No minimum income criteria
Rental income calculation based on interest rate of 4.99%

Please contact Stuart Cardozo on 0131 564 0172 or email for more information.


Price Update - Friday 14th August 2015

Residential Property Investment

We recently used this lender to refinance a portfolio of good quality flats at moderate gearing.

Margin of 2% over base rate
Arrangement Fee 1% 
Minimum loan £150k
Maximum loan £30m
Interest Only for 5-10 years
Loan to value from 55% to 65%
Loan term up to 20 years
No personal guarantees

Contact Ed for more information on 0131 564 0172 or