According to the lender, it will put a particular emphasis on lending to the sub-£5m section of the market, which it said is currently underserved by rival lenders.
Bridging lender TAB said it plans to originate £100m in development finance within the next 12 to 18 months.
According to the lender, it will put a particular emphasis on lending to the sub-£5m section of the market, which it said is currently underserved by rival lenders.
TAB's development finance product starts from 0.9% per month, with a minimum loan of £250,000 and maximum loan of £10m.
The loan to gross development value (GDV) is up to 65%, and term is maximum 24 months and the exit fee is 1% of GDV.
Duncan Kreeger, founder and chief executive of TAB, said: “There are two reasons to do this. First, we want to help customers with whom we have an existing relationship.
“Second, there's a gap in the market. 15 years ago, this space was dominated by the big banks.
"That's all changed now - high street lenders started getting cold feet about development finance after the sub-prime crisis.
"COVID-19 has been the nail in the coffin. The few banks that are still lending are relying on old, outdated technology and systems.
"They're slow. You get the impression they don't really want to do deals.
“The sub-£5m segment is particularly under-served and we think developers will like to see a new lender in the market, one that’s trustworthy, transparent, and capable of working to tight deadlines.
"Given our pace and the fact we will not be competing with established brands, I like our chances of quickly making a big impact on the market.
“While we’ll fund conversions, heavy and light refurbishments and finish and exit property projects, I’m particularly excited by the prospect of becoming part of a moment that’s set to offer ground-up house building a massive booster shot."
