InterBay Commercial has announced the launch of its new ‘Developer Exit’ product.
It is specifically designed to enable developers to re-finance recently completed small-to-medium sized (single or multi-unit) residential developments whilst they are in the process of selling the properties.
The key features of the new product include:
- Up to 75% LTV available (inclusive of interest and fees)
- Loans available between £100,000 – £5 million
- Interest rates from 0.70% a month
- Six or 12 month term options
- Interest roll up for full term
- Arrangement fee can be added to the loan
Colin Bell (pictured), product and new business director, InterBay and Kent Reliance, said: “Our key partners have highlighted the need for greater security in the building and construction industry, so I’m happy we’re able to provide yet further re-assurances to developers that they can raise funds from current or recent properties to help them move on to the next opportunity.
“If recent times have taught us anything, it’s that cash flow is the primary pressure for developers. That’s why we’re developing these specific lending products that give developers the confidence to keep building, keep contributing to the UK’s economic recovery, and keep helping to tackle this country’s chronic housing shortage.”
Brian Walters, director, New Source Commercial Finance, added: “From the looks of it, this is set to be not just an innovative product, but a market leader. Cash flow is absolutely key to our developer clients, who want to avoid having equity locked up in a completed development; waiting for sales and loan repayments before having access to cash again.
“This product allows cash to be released immediately, while rolling up both the arrangement fee and up to 12 months interest into the facility, eliminating the need to service the debt until anticipated property sales have taken place.”