Saxon Trust launches two development exit products

Rates on the market and sell product start at 0.57 per cent per month, allowing developers to cut the cost of their existing development funding while avoiding extension fees. With the product, developers will be able to market and sell completed units at maximum value and potentially release capital to use on their next project. 

The finish and sell product lets developers reduce the cost of finance when a project has reached the wind and watertight stage, when the structure is deemed sheltered by the wind. 

Rates start at 0.79 per cent per month, which Saxon Trust said could be helpful if the developer is experiencing unexpected delays on a project. 

Borrowers can also transition to these products from the lender’s stretch development finance which enables developers to take on additional or larger projects. In this scenario, borrowers will pay no product fees and will benefit from rate reductions of more than 0.40 per cent. 

Loan sizes are available from £100,000 to £5m with terms ranging from three to 18 months.

Stuart Munden, head of credit and risk at Saxon Trust said: “Developers have endured a challenging period over the last two years. Whilst there are some risks they simply can’t mitigate, these new products give them the control and time to ensure they can complete and sell their units in an orderly fashion.”   

Brian West, head of sales and marketing at Saxon Trust, added: “As a lender we are always looking to introduce genuinely innovative product ideas.  

“With our existing borrowers already enjoying the benefits of ‘fee free’ product transfers we look forward to introducing many new developers to the same opportunities.”