Assetz Capital said the rate changes came as developers increasingly relied on conversions to keep projects moving amid planning delays.
According to the Home Builders Federation’s (HBF’s) Q2 2025 Housing Pipeline Report, there was a 23% fall in units that secured planning permission, at 48,022. Just 1,559 housing projects were approved, a third down on the previous quarter and 45% lower than the year before.
In the 12 months to June 2025, there were around 221,900 units approved, which was the weakest annual total in over a decade.
In response, Assetz Capital’s development exit loans now start from 8.75% per annum, planning assistance loans from 8.75% per annum and residential refurbishment loans from 9% per annum.
Andrew Fraser, chief commercial officer at Assetz Capital, said: “Despite government intervention, planning approvals still remain low [and] developers are dealing with unprecedented delays. This is pushing many toward refurbishment and conversion projects, which are quicker to deliver and far less exposed to planning risk.
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“Our new pricing is designed to support that shift. But this is about more than rates – it’s about speed, certainty, and the ability to fund through complexity. We’re calling on brokers to bring regeneration and conversion cases forward this autumn, because these projects are now critical to keeping UK housing supply moving.”
At the end of last month, the firm lowered its ground-up development finance rate.
Allica renews owner-occupier mortgage range
SME lender Allica Bank has revised its owner-occupier mortgage range to support businesses to borrow while keeping capital.
The lender has introduced a limited cashback offer, which will give borrowers 0.5% cashback on the loan amount, excluding fees. This will apply to applications submitted between 26 November 2025 and 31 March 2026, and completed by 30 June 2026.
Allica Bank will waive its usual £500 commitment fee during this period.
Further, the bank has increased the maximum loan term to 30 years and introduced a five-year interest-only period at the start of their agreement on loans up to 75% loan to value (LTV).
Allica Bank will also be raising the maximum LTV to 80% for businesses in the accountancy, veterinary, architecture, property surveying, and selected industrial and warehousing sectors.
Nick Baker, chief commercial officer at Allica Bank, said: “Right now, many business owners are feeling the squeeze of high costs and limited access to finance. They’re ambitious and ready to grow, but too often, the funding they need just isn’t there. That’s where the broker community is so vital – helping those businesses navigate their options and find the finance that fits.
“At Allica, we believe banks have a crucial role to play, too. By expanding our mortgage parameters and introducing new, flexible options – from longer terms to interest-only periods – we’re giving established businesses the confidence and headroom to invest in their future.
“As a bank that rewards its customers, I’m pleased too we’ll be offering cashback and waiving our commitment fees for the next few months. We want to make a tangible difference for brokers and their clients. I hope today’s changes show we really mean that.”
