3% Interest Rate for Residential Development Finance
As lender competition increases, the cost of development finance for sub 70% loan to cost projects is decreasing. In recent months we have delivered finance with arrangement fees from 0.5% to 1%, and interest margins from 2.5% to 3.5%.
The risk balance is currently weighted in the borrowers favour with personal guarantees being minimised or completely removed. By providing access to established lenders building market share, and new to market lenders who are looking to establish themselves, we have seen non-utilisation fees dropped and exit fees removed completely.
These projects are invariably for sites with multiple units, in locations where there is good demand from buyers. This can be in London or in other locations across the UK. Finance of this type is available for a range of residential sub-sector property types with properties being built for sale on the open market the most appetising for lenders.
In recent years we have provided access to liquidity and advisory services relating to contractor finance, joint venture funding, private lending and forward funding. More recently we have been supporting developers delivering Private Rented Sector (PRS) and Build to Rent (BTR) projects. Some are funds specifically focused on this space or residential developers who are diversifying. Funding for this specific strategy varies from build to sell as the interest rates are invariably lower.
Contact Daniel Tongue for the latest pricing, products and terms on offer by completing this brief enquiry form.