Up until now a 2% fee applied if the loan to gross development value (GDV) was over 50%, but this has now been removed.
Steve Larkin, director of development finance at LendInvest, said the move was made to make development finance “even more attractive to the small-scale developers” who are the target market.
Lendinvest provides loans for residential and semi-commercial developments in England and Wales, over terms of up to 24 months. Borrowers can apply for up to 65% of the GDV, up to 100% of the development costs and up to 90% of total project costs.
In the first four months since its December launch into development finance, LendInvest has written 14 development deals, ranging from £400,000 to £10m.
“These experienced developers know what they are doing, have exciting projects that need support, and stand to be the solution to the country’s housing crisis. We want to help get their projects moving”, added Larkin.
LendInvest is also growing its bridging and buy to let divisions, recently securing a £40m funding line from investment bank Macquarie and has set its sights on a move into mainstream mortgage lending.