Written by Rachel Bartlett
20th June 2024
Customers can access development exit bridging loans from just 0.8% per month, our lowest rate since 2022, under a ring-fenced £50 million funding allocation.
The pot, part of our current funding structure, is aimed at developers keen to access a more affordable and competitive bridging rate as they complete projects and move to the next.
There are no exit fees and borrowers can unlock up to 70% LTV on loan periods of four, six and nine months, with extensions available up to a full term of 15 months.
Adam Tovey, MSP Capital’s Director of Risk and Underwriting, said the allocation would support greater diversity in the funding of residential schemes, especially in our south of England heartlands.
Adam, who joined us in 2010 and leads a team accountable for all lending and credit risk across our lending activity, said: “We strongly believe the time is right for a lower rate.”
“We’ve ring-fenced these funds to support our developer customers with a specific Development Exit Bridging Loan, that provides them with flexibility to wait for sales and options for capital release for future projects. Whilst sales can still be slower in the current market, it shows shoots of improvement and we are keen to provide the support with the right funding solutions for our clients.
It’s a time-limited offer designed to give developers more breathing space and flexibility as they wait for a finished scheme to sell.
It means you can reset the clock, refinancing a development loan on to a more competitive bridge secure in the knowledge that as you source your next project, your current one is supported financially.
We believe this will be highly attractive for those seeking that all-important competitive advantage as they await the right buyer and move on.”
“It’s a cost-effective way to benefit from our more than 40 years’ experience and like-minded understanding of the property market.
“Starting at just 0.8% per month, our lowest for two years, the rate will help borrowers’ confidence, boost their profit margins and keeping them building homes.
“We encourage prospective borrowers to talk to us early. As there is a limited time offer on this pot, once it’s gone, it’s gone.”
The allocation applies to recently completed, new-build residential properties at practical completion. Individual properties must be under £1.5m in value, with a maximum total loan of £5m. Properties must be vacant and ready to sell.
