November 22, 2016

Product update: We’ve launched a new development exit finance product

Our development exit product has been designed for developers whose project has reached practical completion, but have not concluded selling the units. This exit finance product allows them to switch to short-term, lower-cost funding.

Key features of the development exit finance product:

  • Interest is charged at 0.7% per calendar month
  • It is available on loans between £250,000 and £5 million
  • A maximum loan-to-value of 75% applies
  • There are no early repayment charges
  • Borrowers may be able to retain part of the proceeds from every unit sale

We know that it can be expensive for developers to remain on their development finance loan when they have finished constructing the units, but have not yet sold all of them. We’ve introduced this flexible new product to help experienced developers move to terms that better suit them and ensure they maximise the profit opportunity from their projects.

Subject to certain conditions, developers will be able to retain part of the proceeds from every unit sale. This will boost their cashflow and can help with the sale and marketing of the remaining units or go towards starting their next project.

Intermediary? Find product overviews on our Intermediaries Site