It also appoints underwriting manager for development finance
Specialist lender Spring Finance has launched its development finance division, with a new product range that includes ground-up development finance for new build sites and a light development finance product for conversions, changes of use, completion of unfinished sites, and home extension projects.
The products cater to both FCA-regulated and non-regulated loans, targeting SME developers, self-builders, and the home extension market.
Day-one funding is available up to 60% of gross development value (GDV) on ground-up projects and up to 65% on light development cases. Both products offer 100% of the cost of works, with loans ranging from £100,000 to £2 million, and have no exit charges.
The development finance launch follows Spring’s expansion into Scotland and the introduction of a non-FCA regulated proposition.
Although Spring had delayed the full launch of its development finance products due to unfavourable market conditions over the past year, it had been accepting development loans from key partners. With improving property market conditions, decreasing base rates, and stabilising build costs, Spring believes now is the right time to fully introduce the product to the market.
To support the launch, Spring has appointed Emmanuel Johnson as underwriting manager for development finance.
Johnson, who brings years of experience from high street banks and specialist lenders, will work alongside Claire Newman, director of bridging and development finance.
“Spring has grown significantly since the launch of the bridging division two years ago, and this is an exciting time in the journey,” Newman said. “Our development product will enable us to support our brokers and their clients in particular with regulated self-build schemes which are underserved in the market.”
Jim Baker (pictured), sales director at Spring Finance, added that they were thrilled to add the new development finance range to their product offerings.
“We have very ambitious growth plans at Spring with the broker and customer experience at the heart of what we deliver,” he said. “A key to our growth plans is to offer a full suite of products to service the diverse needs of our brokers and their clients.
“I am delighted to add this solution for development projects to our comprehensive offering of specialist lending products.”
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