Commercial Finance
Paragon launches 70 per cent GDV development funding
Paragon Development Finance has launched a 70 per cent gross development value (GDV) offering for SME housebuilders.
The first charge product is available up to 90 per cent of the overall development cost.
Along with its sub-£1m product for smaller housebuilders which allows borrowing from £400,000, Paragon hopes to help more SME developers deliver homes in the UK.
The maximum loan size for residential developments is £3m.
Robert Orr, managing director of Paragon Development Finance, said: “UK SME housebuilders are developing much needed new homes across the UK and access to finance from a committed, experienced and capable lender is vital.
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“We always look at ways in which we can support customers and the move to 70 per cent GDV funding is a further extension of that.”
He added: “As part of a successful, well-capitalised bank, all of our lending is completely off our own balance sheet, so customers have one point of contact and a seamless process with credit and due diligence. That is important to them as they look to get schemes off the ground.”