Aldermore Bank has raised its maximum property development loan size from £10 million to £25 million with immediate effect.
The bank says the decision follows increased demand from developers who are looking to borrow through tailored financing facilities, as well fitting in with its strategy to further increase its support for UK housebuilders in 2018.
Since 2012, Aldermore’s property development division has enabled SME developers to build over 5,000 homes. The bank claims the new limit will enable SME developers, who often struggle to gain financial support, to secure the right funding to help them meet the growing demand for new homes across the UK.
Simon Knowles, head of property development at Aldermore, said: “We have seen a growing demand from existing and new customers for larger loan limits and we are delighted to provide them with a significant increase with immediate effect. Alongside this, our personalised underwriting service will continue to ensure that our customers receive tailored support to suit their individual needs.
“It is vital that banks offer the necessary financing to SME developers to help them meet the growing demand for new properties and tackle the significant housing shortage in the UK, and Aldermore is very much committed to playing its part.”