LendInvest has removed the exit fee charged on development finance deals.
A 2% fee was until now applied if the loan-to-GDV was over 50%.
LendInvest launched formally into development finance in December 2015. Since then it has written 14 development deals, ranging in size from £400,000 to £10 million.
Loans are available to experienced property developers looking to build residential or semi-commercial properties in England and Wales over terms of up to 24 months. Borrowers can apply for up to 65% of the gross development value (GDV), up to 100% of the development costs and may be eligible for loans of up to 90% of total project costs.
Steve Larkin, director of development finance at LendInvest, said: “Our development finance product has proved very popular with developers already, as our tremendous progress over the last four months demonstrates.
“We have big plans for development finance, and removing the exit fee makes it even more attractive to the small-scale developers who we are committed to supporting. These experienced developers know what they are doing, have exciting projects that need support, and stand to be the solution to the country’s housing crisis. We want to help get their projects moving.”
