It has committed to supporting residential property developers
Specialist asset-based lender Ultimate Finance has announced that it is freezing its bridging finance loan rates for the next two months in the face of continuing challenges for developers in the residential property market due to rising interest rates.
Bridging finance loans of £100,000 to £3 million are offered at rates from 0.74% per month for LTVs up to 75%, available through many types of bridging loans tailored to a specific challenge: development exit, purchase bridge, development finish and exit, and refurbishment. The lender said all its bridging facilities operate on a fixed-rate basis.
Ultimate Finance said the base rate increase by the Bank of England has added to the existing pressures on development projects from increased costs of materials and labour, GDVs remaining static, and ongoing planning delays. The lender has committed to maintaining its support of residential property developers with its range of products remaining at current rates.
“On the back of a strong performance in our bridging finance business this year, we are committed to continuing to support residential developers and investors, and have taken the decision to freeze our bridging loan rates for the next two months against the backdrop of increasing lending rates in all areas of finance,” Josh Levy (pictured top), chief executive at Ultimate Finance, said. “Our unique position as an independently backed lender allows us to take this decision.”
Liam Cavanagh (pictured immediately below), head of bridging finance at Ultimate Finance, noted that the current market conditions are making it extremely difficult for residential developers to complete their projects on time and budget.
“Our products are uniquely positioning to support them in the key phases where refinance is the best option for them, particularly with our development exit offering,” Cavanagh said. “The key advantage of development exit finance is to provide valuable time for a developer to complete their project, secure their desired exit without additional pressure on cashflow or time constraints, and provide capital through equity release for future projects.
“Our team know that where property is concerned, speed and flexibility is everything, and freezing our rates will give developers some certainty over the coming months. What’s more, once the project is completed and signed off, we can look at a potential equity release to support our borrowers’ cash flow requirements, whether it be used towards a new project or another business need.”
