Hodge eyes commercial lending expansion with product revamp

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  • 28/04/2022
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Hodge eyes commercial lending expansion with product revamp
Hodge has revised its commercial property offering, updated its development finance criteria and launched an investment product for commercial borrowers.

 

This is part of the bank’s plan to extend its offering further into the commercial lending market which it said was in response to an increased demand for diverse funding for multiple asset classes. 

The newly launched product is aimed at experienced property investors who tend to buy a mix of commercial buildings. This may include office buildings, industrial, retail, leisure and mixed-use properties. 

It is available up to 75 per cent loan to value (LTV) with a maximum loan size of £5m. The maximum loan rises to £10m for borrowers in common ownership, which is when an organisation rather than an individual owns a property. 

There is a choice of a floating or fixed rate for terms up to five years.  

Hodge has also updated its development finance offering and will now lend on residential and alternative residential asset classes, including student accommodation, retirement living and commercial developments. 

The bank hopes this will capture investors who want to retain their assets once a development is complete. 

Loans from £1m up to £5m are available over a 24-month term, up to 80 per cent loan to cost (LTC) and 65 per cent loan to gross development value (LTGDV). 

Kevin Beevers, managing director of commercial lending at Hodge, said: “Having worked in this industry for nearly two decades, there has been a definite shift in appetites of both developers and property investors over the past few years to more diverse developments and portfolios. 

“We have been working closely with our intermediary partners on what their clients want and need, and believe we have come up with some great changes and a new product that will hopefully help more investors who have historically not been well served by commercial finance otherwise. 

“We are excited by the changes we have made to our products offerings over the past few months and look forward to working with as many intermediaries, and their clients, on finding finance solutions for their development and commercial project needs,” Kevin added. 

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