This is the lender’s lowest rate since 2022 and the product is aimed at developers who want an affordable and competitive rate when completing projects. 

The product from MSP Capital has no exit fees and borrowers can access the deal up to 70% loan to value (LTV) on loan periods of four, six and nine months. The term can also be extended up to a maximum of 15 months. 

There are no exit fees and borrowers can unlock up to 70% LTV on loan periods of four, six and nine months, with extensions available up to a full term of 15 months. 

The product is available against recently completed, new-build residential properties at practical completion. Individual properties must be under £1.5m in value, with a maximum total loan of £5m. Properties must be vacant and ready to sell. 

Adam Tovey (pictured), director of risk and underwriting at MSP Capital, said the allocation would support greater diversity in the funding of residential schemes, especially in the lender’s South of England heartlands. 

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Tovey said: “We strongly believe the time is right for a lower rate for our development exit product.

“The Bank of England base rate has held at 5.25%, the general election is imminent and homes on the market have grown faster than sales agreed across England.

“Noting this, we wanted to give our clients the benefit of more time and financial flexibility.” 

He added: “We’ve ringfenced these funds to support our developer customers with a specific development exit bridging loan that provides them with flexibility to wait for sales and options for capital release for future projects.

“Whilst sales can still be slower in the current market, it shows shoots of improvement and we are keen to provide the support with the right funding solutions for our clients.” 

 

‘Time-limited offer’

Tovey said the deal was a “time-limited offer” designed to give developers “more breathing space and flexibility as they wait for a finished scheme to sell”.

He continued: “It means you can reset the clock, refinancing a development loan on to a more competitive bridge secure in the knowledge that as you source your next project, your current one is supported financially.

“We believe this will be highly attractive for those seeking that all-important competitive advantage as they await the right buyer and move on.

“It’s a cost-effective way to benefit from our more than 40 years’ experience and like-minded understanding of the property market. 

“Starting at just 0.8% per month, our lowest for two years, the rate will help borrowers’ confidence, boost their profit margins and [keep] them building homes. 

“We encourage prospective borrowers to talk to us early. As there is a limited-time offer on this pot, once it’s gone, it’s gone,” Tovey added.