Saffron Building Society has launched a smaller development finance loan for those requiring between £150,000 and £500,000 to build or renovate a property to sell on the open market.
Saffron will lend primarily for new builds and conversions but will in some circumstances fund projects which are part completed.
Using the product the customer can leverage at the lower of 75% of project costs and 65% of gross development value. Interest rates typically start from 1% per month with a 2% arrangement fee and 1% exit fee.
Peter Owen, head of property development at Saffron Building Society, said: “Our customers like the fact that we take a personal interest in their projects and provide ongoing advice, guidance and support throughout the complete development process.
“We don’t just lend and walk away, we are dedicated to the project and we visit the site to ensure we support our customers as the project progresses. We offer regular assistance wherever possible to enable them to overcome potential issues, such as unavoidable cost and time overruns.
“Many of our customers stay with us and ask for support on subsequent projects – it becomes a partnership. For us, it’s not just about finance. It’s about lending our years of experience to help our customers achieve a successful outcome.”
Each customer taking out a development finance loan will be supported by a dedicated relationship manager throughout the build.