Ultimate Finance freezes bridging finance loan rates
Specialist asset-based lender Ultimate Finance is today announcing they are freezing their bridging finance loan rates from 0.74% per month for the next two months in the face of continuing challenges for developers in the residential property market.
The Bank of England base rate went up for the sixth time in a row last week, the largest single step in 27 years and puts base rates at their highest level since 2008. This adds to the existing pressures on development projects from increased costs of materials and labour, GDVs remaining static and ongoing planning delays but the lender has committed to maintain their support of residential property developers with their range of products remaining at current rates.
Bridging finance loans of £100k to £3m are offered at rates from 0.74% per month for LTVs up to 75%, available through many types of Bridging Loans tailored to a specific challenge: Development exit, purchase bridge, development finish and exit, and refurbishment. All bridging facilities from Ultimate Finance operate on a fixed rate basis
Josh Levy CEO of Ultimate Finance said “On the back of a strong performance in our bridging finance business this year, we are committed to continuing to support residential developers and investors, and have taken the decision to freeze our bridging loan rates for the next two months against the backdrop of increasing lending rates in all areas of finance. Our unique position as an independently backed lender allows us to take this decision.”
Liam Cavanagh, head of bridging finance of Ultimate Finance said “The current market conditions are making it extremely difficult for residential developers to complete their projects on time and budget, and our products are uniquely positioning to support them in the key phases where re-finance is the best option for them, particularly with our development exit offering. The key advantage of development exit finance is to provide valuable time for a developer to complete their project, secure their desired exit without additional pressure on cashflow or time constraints, and provide capital through equity release for future projects. Our team know that where property is concerned, speed and flexibility is everything, and freezing our rates will give developers some certainty over the coming months. What’s more once the project is completed and signed off, we can look at a potential equity release to support our borrowers cash flow requirements, whether it be used towards a new project or another business need.”