The collaboration will create a £25m revolving fund to allow Invest & Fund to support small builders with construction loans of between £400,000 and £2.5m, funding schemes of two homes and more, at up to 80% LTC.
Applications are being accepted from today and prospective borrowers should contact Invest & Fund by email.
Gordon More, chief investment officer at Homes England said: “We are particularly pleased to be working with a specialist finance provider, recognising the crucial role that the non-bank lending market continues to play in supporting smaller builders in these challenging times.
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“In Invest & Fund, we have found a partner with a shared purpose to support the market and the desire and capability to scale their lending activity.”
David Turner, chief executive at Invest & Fund, commented: “We are delighted to be partnering with Homes England to help fund the development of the new homes the country needs.
“Our approach of employing a best-in-class credit underwriting model, backed by a strong focus on operational excellence and our culture of good governance has been recognised in this partnership and we are focused on lending to creditworthy borrowers via this venture.”
Housing minister, Christopher Pincher, added that the government was determined to support as many as possible within the housebuilding industry — in particular, smaller builders — to get Britain building.