Hodge changes its residential development loan criteria

It will now allow lending on alternative residential assets, including student accommodation and retirement living. 

The change has been made in response to client and broker demand, Hodge said. The bank was previously focused on pure residential development but is now looking to broaden this. 

It has therefore also launched a development finance loan for experienced developers in England, Scotland and Wales with non-complex ownership structures.

The loan is available to those borrowing through limited companies, PLCs, LLP, partnerships and individual borrowers

It goes up to 80 per cent loan to cost (LTC) and 65 per cent loan to gross development value (LTGDV). The minimum loan size is £1m and the maximum is £5m over a two-year term. 

Gareth Davies, Hodge’s head of development finance, said: “There is clearly demand for development funding in the alternative residential asset class and, given Hodge’s history and experience in this sector, it makes sense for us to expand our appetite across multiple asset classes.”