LendInvest launches new development exit finance product

London, 2 November 2016 – LendInvest, the UK’s leading online mortgage lender, has launched a new development exit finance product.

The 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

Matthew Tooth, Head of Distribution at LendInvest, said: “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 to 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.”

Last month LendInvest reduced the rates charged on its Tier 1 residential bridging loan range by as much as 11 basis points per month.

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Contact

John Fitzsimons: [email protected] / 020 3864 6817

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.

To date LendInvest investors have invested to date in over £770 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 the only UK online lender to report three years’ of profitability in its first three years of trading, with profits for FY 2016 rising to £3.4 million.

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).

In September 2016, LendInvest launched the LendInvest Property Development Academy, a non-profit initiative designed to improve the skills of aspiring property developers whose projects can help to solve Britain’s major housing crisis.

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