The 70% LTGDV facility — agreed at 0.79% on an 18-month loan term with no exit fee — was used by the borrower to purchase the site and fully fund the cost of the construction works.

The borrower’s agreement with the vendor of the land enabled works to begin before the completion of the purchase.

Therefore, Fiduciam’s challenge was to ensure that a flexible initial drawdown was available to fully cover the works to date, as well as provide funds towards the acquisition costs.

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Anastasia Sachinidou, case manager at Fiduciam, said: “This case demonstrates how close long-term borrower-broker-lender relationships can deliver finance solutions that are optimally tailored to clients’ requirements.  

“Small housebuilders often negotiate bespoke agreements with landowners, which enable them to seek planning before completing the purchase of a site; in this case, the developer could also start works prior to completion. 

“Fiduciam’s loan provides efficient funding at the time it is required, and therefore helped reduce the borrower’s overall finance costs.”

Marc Morris, underwriter at Fiduciam, added: “Fiduciam continues to support small housebuilders across England, Scotland, Wales and Northern Ireland with development finance. 

“In this fast-moving space, it is essential to consider cases on the merits of their core credit risk fundamentals and adapt products to borrower and scheme requirements. 

“We were delighted to provide another tailored loan solution to a returning borrower in the Midlands.”