Spring Finance formally launches development finance division

  • 17/06/2024
  • 0
Spring Finance formally launches development finance division
Specialist lender Spring Finance has formally launched its development finance division, which will offer regulated and non-regulated loans.

The lender said that within its development finance offering, it would offer ground-up development finance for new-build suits, light development finance for conversions, change of use, completions of yet-to-be-finished sites and home extension products.

The firm said it is targeting SME developers, self-build and home extension markets.

Spring Finance said that day one funding is available up to 60% gross development value (GDV) on ground-up cases and up to 65% GDV on light development cases.

Both products offer funding for 100% of the cost of works, with loans available from £100,000 to £2m.

There are no exit charges on the product.

Spring Finance said that it had appointed Emmanuel Johnson as underwriting manager for development finance to support its launch.

He will work with Claire Newman, director of bridging and development finance, to launch this product and build out the development finance team.

The company said: “Spring is committed to delivering a full suite of specialist lending products, and the development financial proposition follows on the back of the expansion into Scotland and the launch of a non-FCA-regulated proposition.

“Whilst Spring feels the market conditions in the past 12 months have not been right to fully launch this product, they have been inviting in development loans from key partners. With property market conditions improving, base rates on the way down and build costs stabilising, the lender feels that now is the time to fully launch the product to the market.”


‘Exciting time in the journey’ for Spring Finance

Newman said that the firm “has grown significantly since the launch of the bridging division two years ago and this is an exciting time in the journey”.

She continued: “Our development product will enable us to support our brokers and their clients, in particular with regulated self-build schemes, which are under-served in the market. Emmanuel is a great addition to the team, and with him onboard, we look forward to growing the development side of the business over the coming months”.

Johnson added: “Spring Finance puts its clients at the centre of all it does, the launch of this product is yet another example of this. I am very excited to be part of the team and look forward to adding value to the business and seeing it grow.”

Jim Baker, sales director at Spring Finance, said: “We have very ambitious growth plans at Spring, with the broker and customer experience at the heart of what we deliver. A key to our growth plans is to offer a full suite of products to service the diverse needs of our brokers and their clients. I am delighted to add this solution for development projects to our comprehensive offering of specialist lending products”.


Broker reaction to development finance deals

Michael Cartwright at Buildloan said: “We have been happy to support Spring since the beginning, due to their flexible approach, access to decision-makers and an overall first-class team. It’s great to see Spring move into development finance and support both non-regulated and regulated developments.

“Their background and deep understanding of development projects, coupled with a first-class team, will allow us to place business with confidence. This is a very welcomed product and we are very happy to have this added to the options we can offer our clients’’.

Aaron Noone, director of Master Finance, added: “I recently completed an unregulated ground-up development with Spring Finance, choosing them for their attractive no-exit-fee proposition – this reflected lower cost than other lenders for my client.

“This was for an experienced developer with a total facility in excess of £1m. The build was a luxury four-bed detached property in a great location. I expect the highest level of service from the lenders I work with and the team at Spring delivered this loan way above my expectations.

“As any broker will say, my client is central to my process, and it’s evident it is with Spring too. I am delighted to see Spring now offering development to the wider market and I have no doubt it will be a great success.”

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