Simon Knowles

Aldermore launches VAT loans for development finance customers

Aldermore has announced the launch of VAT loans for development finance customers to cover the VAT due on land and property purchases.

The specialist bank has introduced the product on the back of demand for such loans from housebuilders and developers, and has committed to increasing its support for the housing industry.

Housebuilders will be able to reduce their initial cash flow commitment when purchasing land and property elected for VAT when taking out a development finance facility with Aldermore.

Simon Knowles, head of property development at Aldermore (pictured above), said: “The purchase of a property that is elected for VAT can pose a real problem for SME developers when it comes to cash flow.

“This payment can have a negative impact on a developer’s ability to progress the early stages of their development. 

“The introduction of this new facility will ease the initial cash flow impact and allow the developer to focus on getting the development started.”

This follows the specialist bank’s launch of VAT loans for commercial mortgage customers in June 2019.

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