For light development cases, covering large-scale extensions and changes of use from commercial to residential, rates have fallen to 1.04% per month. Masthaven Finance said this would improve affordability for smaller and mid-scale development schemes.
For professional development aimed at SME developers, the lender now offers reduced pricing of 1.09% per month, with up to 100% of build costs covered.
Regulated self-build has been reduced to 1.14% with no exits. Elsewhere, Masthaven Finance’s development exit product is priced at 0.89% per month up to 70% loan to gross development value (LTGDV).
There are no exit fees on any product.
Emmanuel Johnson, head of development finance at Masthaven Finance, said: “Each rate adjustment has been made where pricing has the greatest impact on deal flow, whether that’s during the build or at the point of exit. With competitive prices and robust underwriting, Masthaven Finance is well-positioned to support as many projects as possible in what we believe will be an important year for developments in the UK.
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“We’ve been very deliberate in where we have made changes, ensuring brokers can deliver stronger outcomes for their developer clients without compromising on certainty or service.”
Earlier this week, the lender lowered bridging rates, broadened the use of automatic valuation models (AVMs) and introduced dual representation.
