You are here: Home -

Ultimate Finance to fix bridging rates for next two months

by:
  • 09/08/2022
  • 0
Specialist asset-based lender Ultimate Finance will freeze bridging finance loan rates for the next two months to support residential developers and investors.

The lender offers bridging finance loans between £100,000 and £3m with rates from 0.74 per cent per month up to 75 per cent loan to value (LTV).

It is available for development exit, purchase bridge, development finish and exit, and refurbishment, with all available on fixed rates.

Ultimate Finance said that the Bank of England’s decision to increase the base rate to 1.75 per cent last week was “adding existing pressures” on development projects, pointing to increased material and labour costs.

The lender added that gross development values remained static and there were also ongoing planning delays.

Ultimate Finance said that it was “committed to maintain their support of residential property developers with their range of products remaining at current rates”.

Josh Levy (pictured), CEO of Ultimate Finance, said: “On the back of a strong performance in our bridging finance business this year, we are committed to continuing to support residential developers and investors, and have taken the decision to freeze our bridging loan rates for the next two months against the backdrop of increasing lending rates in all areas of finance.

“Our unique position as an independently backed lender allows us to take this decision.”

Liam Cavanagh, head of bridging finance of Ultimate Finance, said that current market conditions were “extremely difficult” for residential developers to complete on time and budget, and its products were uniquely positioned to support them in key phases where refinance was the best option.

He pointed to the development exit product, which gives developers “valuable time” to complete their project, secure their desired exit and provide capital through equity release for future projects.

Cavanagh added: “Our team know that where property is concerned, speed and flexibility is everything, and freezing our rates will give developers some certainty over the coming months.

“What’s more once the project is completed and signed off, we can look at a potential equity release to support our borrowers cash flow requirements, whether it be used towards a new project or another business need.”

Related Posts

Tags

There are 0 Comment(s)

You may also be interested in