Specialist lender Blend has launched a brand new bridge product for property builders.
The lender stated the market was experiencing a gross sales slowdown, which meant some lenders didn’t need to carry ahead a accomplished venture when the mortgage was about to run out, or weren’t in a position to.
The exit bridge product goals to deal with this downside by permitting builders to hold a venture till a worth sale is achieved.
It is open to property builders with accomplished residential developments who’re going through the expiry of their current mortgage with a lender that doesn’t need to lengthen this.
Developers can borrow between £500,000 and £5m with the bridge product, with mortgage to values (LTVs) of 70 per cent and 75 per cent. This is priced at 0.95 per cent to 1.1 per cent monthly. Blend may permit builders to launch fairness to fund their subsequent venture, in some circumstances.
This product launch follows the announcement that Blend had obtained a £50m-plus institutional funding line to supply bridging finance to builders.
Yann Murciano, CEO at Blend, stated: “For the previous seven years, Blend has been supporting mid-size property builders throughout the UK, and we’re very proud to say that we’ve by no means needed to appoint a receiver on any of our builders. Have there been points with the initiatives we’ve funded? Yes, undoubtedly.
“But our business model is based on supporting developers and working with them, not against them. So, where our developers have faced issues with their schemes, we have worked closely with them to find solutions that help them overcome the challenges. That collaboration has been, and continues to be, the cornerstone to our business, and is the reason we see repeat developers wanting to work with us.”
He added: “The previous 18 months have been very difficult available in the market. We are seeing quite a lot of extensions and are talking with many builders with services which are coming near expiry.
“The launch of our new bridge sends a strong message to those developers: we want to work with you and support you. We want to give you enough time to market your property at the right price, rather than having to fire sale or face the expiry of your facility, which often comes with extremely high default rates and fees.”
Shekina is the industrial editor at Mortgage Solutions, YourMoney.com’s sister title within the B2B business. She has over 4 years’ expertise within the B2B publishing market, with earlier industries together with the accounting, pet, funeral, hospitality, retail and jewelry trades.
She at present experiences on present occasions within the mortgage market and liaises with monetary purchasers to provide sponsored content material.
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