Saffron Building Society has launched a smaller development finance loan for customers requiring an advance of between £150,000 and £500,000 to build or renovate a property to sell on the open market.
The lender will lend primarily for new builds and conversions.
It will in some circumstances also consider funding projects which are part completed and which require additional funding to complete the project.
Customers can leverage at the lower of 75% of project costs and 65% of gross development value.
Interest rates start from 1% per month, with 2% arrangement fee and 1% exit fees.
Fixed legal costs stand at £1,200 for a single titled property.
The loan is supported by a team of relationship managers offering guidance for customers, including newly appointed Solo Baleisolomone who has experience as a qualified quantity surveyor.
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