Zorin Finance has completed a £26m loan to developer Vision Homes to fund the building of 82 properties in South West London.
Zorin pledged to fill the gap left by mainstream banks and provide more funding to SME housebuilders.
Luke Townsend, its chief executive, said: “With limited financing a major contributor to the UK’s housing shortage, we aim to support the re-establishment of the SME housebuilding industry to deliver crucial new homes.”
SME housebuilders were responsible for 50% of new housing production in the 1980’s, falling to 25% in 2008 and 15% last year.
However alternative lenders’ share of the development finance market has doubled in the past three years.
Parma Sulh, chief executive of Vision Homes, said: “Zorin Finance offered us an attractive borrowing proposition, based on their expert knowledge of the property sector, flexibility, transparency and ability to move swiftly.
“It is clear to us that alternative lenders such as Zorin offer a crucial way for housebuilders to realise their developments under challenging market conditions and deliver important new homes for Britain.”
Zorin offers development finance and bridging loans for between £1m and £50m and is able to offer loans up to 90% of loan-to-cost and 70% of loan to gross development value.
