It will use the pilot to refine its offering ahead of a full market launch
Bridging lender London Credit has launched a pilot programme for its development finance product, offering up to 70% loan-to-gross-development-value.
The lender said it will use the pilot to refine its offering ahead of a full market launch. It will initially provide financing on a small number of schemes to fine-tune its lending and service processes.
According to London Credit, the aim of the pilot programme is to ensure the product meets the needs of brokers and their clients before a broader rollout.
Earlier this year, the company appointed Jake McCausland to head its expansion into development lending. The pilot marks the first stage of this plan.
London Credit currently offers bridging loans ranging from £100,000 to £3.5 million on residential, commercial, and semi-commercial properties in London, the South East, and major cities. Loan terms range from three to 18 months.
The loans are available for various purposes, including refurbishment, auction finance, and capital raising. The lender’s maximum loan-to-value (LTV) is 75% for residential properties and 65% for commercial and semi-commercial properties.
“We understand that development finance is a very specialist area of lending, and it’s important to ensure both product and processes are built to meet the specific needs of developers,” McCausland said.
“With this in mind, we are launching in a controlled way to ensure we are completely happy with our proposition before rolling it out more widely. We look forward to the next stage of our launch in the coming months and helping brokers to deliver new funding options to their developer clients.”
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