Aldermore to increase exposure to larger commercial development loans

Aldermore is looking to increase its exposure to larger commercial development loans, according to its commercial director John Carter (pictured above).

John claimed that while the bank has previously served the lower level, it hasn’t really penetrated above that.

As a result, it wants to grow its coverage to help bolster its balance sheet.

John mentioned that the bank would continue to serve the existing market, but has grown the team to have the skills set to cover the full breadth of lending.

“I think it’s just [that] we’re looking at the number of transactions which are in that investment space, and we’re seeing a lot more opportunities there…”  

Aldermore sees prospects in the £5m-plus space.

“That’s for existing customers that want to grow, but also to entice new customers in that are looking to invest there as well.”

Another one of the specialist bank’s major focuses is to increase the amount of lending via its development-to-hold proposition.

This allows a developer to refinance a development loan on to a commercial lease, from three years up to 20 years.

Aldermore will provide up to £25m of funding for this on PBSA schemes and later life residential developments, including supportive living.

"So, we'll provide them [with] a one-stop shop.

“We'll fund the development and once the development is completed, we'll create another facility and offer them the option to move to a commercial mortgage. 

John said that the specialist bank had seen demand for this because it saved on costs.

“So, being a one-stop shop does make it a bit more efficient.”

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