Interbay Commercial has announced the launch of its new ‘Developer Exit’ product as it moves to further support developers.

The product, showcased at yesterday’s NACFB Commercial Expo, will enable developers to re-finance completed small and medium-sized residential developments whilst they are in the process of selling the properties.

Key features of the new product include:

•    Up to 75% LTV available (inclusive of interest and fees)
•    Loans available between £100k and £5m
•    Interest rates from 0.7% a month
•    6 or 12 month term options
•    Interest roll up for full term
•    Arrangement fee can be added to the loan
 
Colin Bell, Product and New Business Director at Interbay and Kent Reliance, said its key partners highlighted the need for greater security in the building and construction industry.

“I’m happy we’re able to provide yet further reassurances to developers that they can raise funds from current or recent properties to help them move on to the next opportunity,” said Colin.

“If recent times have taught us anything, it’s that cash flow is the primary pressure for developers. That’s why we’re developing these specific lending products that give developers the confidence to keep building, keep contributing to the UK’s economic recovery, and keep helping to tackle this country’s chronic housing shortage.”

The product received a positive reception from brokers at the Expo including Brian Walters, Director at New Source Commercial Finance, who described it as a ‘market-leading’ product.

“Cash flow is absolutely key to our developer clients, who want to avoid having equity locked up in a completed development; waiting for sales and loan repayments before having access to cash again,” said Brian.

 “This product allows cash to be released immediately, while rolling up both the arrangement fee and up to 12 months interest into the facility, eliminating the need to service the debt until anticipated property sales has taken place.”

Julian Ingall, Director of Coreco Specialist Finance, added: “InterBay’s Developer Exit offering is an exciting new entrant to the market, easing a number of the financial restrictions that blight those in the developer community.

“It’s refreshing to see lenders listen so carefully to their stakeholders during the product development process, and I’m sure the approach will now lead to a flurry of activity for them.”