In the past year, UTB grew its property development sales team to 24 directors and managers and has struck partnerships with Homes England and British Business Bank to broaden its reach to housebuilders.
With Homes England, it agreed a five-year lending alliance and launched a £250m housing accelerator fund to support SME housebuilders with development finance up 70 per cent loan to gross development value. It provides construction loans between £1m and £10m.
UTB also secured an Enable Build guarantee, valued at £250m, through British Business Bank, which the lender said allowed it to grow the amount of development finance it can provide to housebuilders.
During the lifetime of the guarantee, it will support the building of 2,700 units of new housing and provide £300m of funding to SME housebuilders.
The bank said it planned to grow its property development loan division with more locally based development directors and managers, who would work with housebuilders to create more development finance and developer exit solutions.
This year, it will also use technology to improve the funding application process for brokers and customers, as well as continue to develop its offering and strike more strategic alliances.
Adam Bovingdon (pictured), head of property development at United Trust Bank said surpassing the £1bn mark in its development loan book was an “impressive achievement” for the team and company.
He said: “We supported more SME housebuilders with more funding in 2021 than we ever have before, and our loan commitments now support the delivery of in excess of 6,000 new homes across England and Wales at any one time.”
He added that its personal approach to its development finance along with the team’s knowledge of the construction industry had appealed to a wide range of customers across the country. Its partnerships with Homes England and British Business Bank also allowed it to increase its lending of “higher geared funding” to housebuilders and development.
Bovingdon said: “Our aim this year is to further develop our compelling offering and assist the resurgence of the SME housebuilding sector.”
UTB is also planning to grow its asset finance division, following a record breaking performance last year, by expanding its team, innovating products and investing in technology.
It also appointed Nikki Brett, formerly of Hampshire Trust Bank, to the new position head of underwriting for the bridging division.