To support the property market, the British Business Bank have released information on new government-backed loans that can provide developers across the country with more time to sell their developments.
COVID-19 has affected the UK economy substantially, with companies in many sectors having to pause or stop trading. For this reason, the UK has provided financial support with government-backed loans in the form of the Coronavirus Business Interruption Loan Scheme (CBILS). Over the last few months, we have been supporting businesses of all sizes gain access to these vital funds by careful management to support application eligibility, sourcing the right lenders for their business and being there from inception to completion of the loans.
There has, however, been a gap created for those in property development who have been unable to progress with property sales. Developers across the country have felt the financial burden, and gaining access to the necessary funding has been almost impossible.
It is becoming increasingly clear that as we continue to ease out of lockdown, the property market is essential in supporting the UK’s economy post-coronavirus. To support this integral market further, a CBILS product is now available. If your development has been affected by the coronavirus, a CBILS Development Exit Loan can give you the time to sell.
What is the CBILS Development Exit Loan?
This type of loan can be used to refinance a completed or near complete fully residential development. The government will cover 100% of the interest and the arrangement fee for the first 12 months, so you will only pay back the net loan and any introducer fees. Monthly payments must be serviced if the loan is still open after the first 12 months.
This new product will reduce stress and pressure on developers, but is only available through limited distribution. It is recommended that you act quickly to gain access to this fantastic offering.
Terms and eligibility varies from lender to lender, however you could borrow up to £5m with:
- Terms up to 2 years, with the first year covered by the Government.
- Loan to Value up to 70% of the market value.
- Interest and arrangement fees in the first 12 months covered by CBILS.
- Rates from 0.55% per month.
- Part redemptions may be acceptable.
Finance 4 Business
Act quickly to avoid disappointment – these loans are available through select distribution channels with limited funds available.
As a specialist financial broker, Finance 4 Business can search the market to find you an applicable loan for your property developments and provide you with access to these integral forms of finance.