Development finance lender Pluto enters bridging market

The lender said it will provide short-term bridging loans alongside its current core activity of providing development loans, with rates starting at 0.8% a month charged on a rolled-up basis.

Loans will be available for £1m to £6m up to 70% loan-to-value. The shortest loan available will be for three months, with a maximum term of 12 months.

Lending Manager Steffan Goold said the lender would consider financing potential development sites as well as refinancing completed units.

It wanted to give developers more time to get their projects off the ground and more flexibility to complete existing projects before selling them on.

“It feeds into our own lending platform of development finance. In an ideal world they would then take up a development plan with us,” he said.

Pluto will target clients in London and the South East but will accept all asset classes, including commercial and residential land.

The first deal is already lined up for February, Goold said.