Assetz Capital cuts development finance rates to 8.85%
Assetz Capital, a leading funder in the SME residential development space, has announced a further cut to its development finance rates, now starting from a highly competitive 8.85%. This follows a prior rate reduction in February, signalling the lender’s continued push to drive housing delivery across the whole of the UK, with a series of deal completions across Scotland, Yorkshire, South Coast and Midlands in April.
The move is designed to increase affordability and confidence among SME developers, helping them progress stalled projects, make new site acquisitions, and accelerate delivery pipelines amid persistent challenges in the market.
“Our aim is simple: help developers build more homes, faster,” said Andrew Fraser, chief commercial officer at Assetz Capital. “Our rate reduction immediately improves the Day 1 advance available to developers, therefore helping developers to break ground sooner, with lower upfront costs and more certainty in funding.”
Immediate Support for Developers Facing Cost Pressure
Fraser underscored that the decision to reduce rates is part of Assetz Capital’s strategy to respond proactively to changing market conditions, rather than waiting for central bank shifts.
“We’re staying ahead of the BoE curve because the urgency for housing delivery can’t wait,” he said. “By acting now, we’re giving brokers and their clients the ability to move quickly, reduce finance costs, and maintain profitability—even in a more constrained market.”
The lender is also offering up to 72% LTGDV Day 1 advances, coupled with 24-hour credit decisions for straightforward cases—streamlining access to capital and easing developers’ cashflow burdens.
A Nationwide Solution for Regional Development
While the government’s proposed planning reforms are welcomed, Assetz Capital notes that meaningful impacts will take time to materialise. The lender’s reduced rates and accelerated processes are available now to SME developers across England, Scotland, Wales, and Northern Ireland.
“Developers deserve both speed and fairness when it comes to finance,” Fraser added. “From site acquisitions to the final build phase, we’re providing accessible, fast-track funding that supports sustainable growth in every UK region.”
Backed by a Decade of Impact
With over £1.7bn deployed since 2013 and a role in funding 1 in every 12 SME-built homes, Assetz Capital has firmly established itself as a go-to lender for smaller housebuilders looking for competitive, flexible finance.
The latest rate cut further strengthens its position as a responsive and developer-centric alternative to traditional lenders and challenger banks alike.