The facility provides up to 75% LTGDV and 90% LTC, effectively blending mezzanine and senior debt into one facility, making it easier for developers to borrow in one place.
As a result, borrowers are able to optimise their day-one cash flow and maximise returns.
The product is available to residential developers on schemes of up to £10m GDV across the UK.
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Roxana Mohammadian-Molina, chief strategy officer at Blend Network (pictured above), said: “What many experienced and established developers are saying is that there are no shortage of opportunities in the current market, yet many deals are being lost due to the constrained nature of many lenders which have a limited understanding of the true requirements of the development process.
“That’s why we are saying to experienced developers loud and clear: if you have a good scheme and need to up your gearing to make it work, we’ll back you.”
Yann Murciano, chief executive at Blend Network, commented: “At a time when most lenders have capped their gearing at 65% post-pandemic, we are sending a strong signal to the market that we are ready to back established property developers who want more cash than what other lenders can offer them.
“Effectively, we are offering an alternative to challenger banks who are more constrained by their credit terms.”
The new offering adds to the lender’s existing range of existing development finance products, and follows the launch of ‘development plus’, a facility with a guaranteed exit for housebuilders, powered by LDS Sales Guarantees.
Paul Watson, head of lending at Blend Network, added: “It’s time to go back to pre-Covid levels of gearing to get Britain moving [and] to get lending going.
“That’s why we are launching this new 75% LTGDV facility, because it’s what the market needs right now and what developers are begging for.”
In June, Blend Network funded its largest ever project, a £3.46m facility for a £5.63m GDV development in Dorset.