LendInvest completes first development exit loan saving borrower 30% in future interest

LendInvest, the UK’s award-winning online mortgage lender, has completed its first development exit loan for a new bridging customer only four weeks after the new product was launched to market.

Development exit loans are designed for developers whose project has reached practical completion, and are looking for short-term, lower-cost funding while they conclude the marketing and sale of their property.

In this case, the borrower was an experienced developer who was seven months into a twelve-month development finance loan from another specialist finance lender to fully renovate a two-bedroom apartment in Fulham, Southwest London.

Having reached practical completion, the borrower was looking for cheaper finance until the apartment could be sold. Within three weeks, the lender and borrower moved seamlessly from initial enquiry to full drawdown.

The loan is based on a 70% net LTV and lasts for nine months with rolling interest charged at 0.7% pcm. By moving onto a LendInvest development exit loan, the borrower is saving himself 30 basis points per month in the rate.

Matthew Tooth, Chief Commercial Officer at LendInvest, said: “Getting our first development exit loan over the line so soon after launch proves that our model works and demand is there. This is just the first of many developers we can help to secure more affordable finance quickly when they reach practical completion on their projects.”

Development exit loans were launched by LendInvest in early November. They coincided with LendInvest’s reduction in minimum loan sizes and its expansion to Scotland and northern England, as part of the company’s regional rollout strategy.

About LendInvest

LendInvest is the UK’s leading online mortgage lending and investing business. The company was spun out of Montello, an offline bridging finance lender, in 2013 and now provides over 10% of all short-term property finance in the UK.

In November 2016, LendInvest was named Best Short-Term Lender at the annual National Association of Commercial Finance Brokers (NACFB) awards.

To date LendInvest investors have invested to date in over £800 million of loans made to borrowers who have bought, built or renovated over 2,600 residential properties in more than 120 English towns and cities.

LendInvest is authorised and regulated by the Financial Conduct Authority and is the only UK online lender to have been rated twice by a regulated European credit rating agency (2015 & 2016).

For further information, please visit www.lendinvestgroup.com and follow the company at @fastestmortgage.