Pivot cuts bridging and development finance rates by 200 bps
Pivot, the specialist real estate lender, has reduced its interest rates by 200 bps, with its bridging and development finance now starting from 6% per annum above BoE base rate.
Since its management buyout in February this year, backed by Foresight Group, Pivot has broadened its lending offering, including an expansion into commercial development finance, as well as reducing pricing across its loan products throughout England, Scotland and Wales.
Loan sizes range from £2m to £15m with terms up to three years, supporting developers and investors with funding to acquire, build, and stabilise throughout the various stages of their property plans.
By simplifying its pricing structure and reducing its rates, Pivot pledges to broaden its reach, providing funding solutions to borrowers with proven experience who want to work with a highly experienced team and genuine partner.
At a glance
- ● Starting rate: 6% + BoE base rate per annum
- ● Loan sizes: £2m to £15m
- ● Residential development finance: up to 70% LTGDV and 90% LTC
- ● Commercial Development finance: up to 65% LTGDV / 85% LTC
- ● Development exit and stabilisation finance: up to 70% LTV
- ● Residential bridging: up to 75% LTV
- ● Commercial bridging: up to 65% LTV
Pivot lends throughout England, Scotland and Wales, and backs deals where the numbers work rather than where the postcode is most familiar. Recent completions include:
- ● Harrogate: £6.7m acquisition and development loan for a 28-unit scheme combining new homes, converted buildings, offices and a café within a former mill complex.
- ● Newcastle-under-Lyme: £10m senior refinancing for a 273-bed student accommodation scheme.
- ● Gloucester: £5m facility funding the conversion of a vacant office building into a special educational needs school with capacity for 120 pupils.
- ● Aberdeen: £3.1m, 20-month development facility at 70% LTGDV for ground-up project comprising commercial ground-floor units and 16 apartments.
Shahil Kotecha, Pivot CEO, comments: “We’ve been working hard behind the scenes to make our offering as competitive as possible, while still reflecting the specialist nature of our lending proposition. Simplifying our rate model allows us to invite more conversations about interesting assets and funding scenarios which we have a strong appetite to support.
“Our intention is to ensure that our products are accessible and that we are actively supporting SME developers and investors throughout the country, leveraging our market-leading expertise and flexibility of funding.”
Foresight Group has supported Pivot for almost three years and completed a £100m+ debt facility and equity investment into the business in February this year.