Assetz Capital has reduced its headline development finance rate for the third time in six months, bringing it down to a new starting level of 8.60%.

The latest cut follows earlier reductions from 9.10% in February and 8.85% in April, and underlines the non-bank lender’s ambition to offer what it describes as “fair, accessible finance” to smaller developers delivering much-needed housing across the UK.

Andrew Fraser (pictured), chief commercial officer at Assetz Capital, said the lender had “acted quickly again to support our borrowers”, adding that the revised rate reflects its determination to help SME developers “maintain momentum” in a testing market.

The rate cut is supported by a package of flexible lending features including enhanced Day One loan advances and credit decisions within 24 hours on straightforward cases.

The lender is also offering experienced borrowers the ability to model early-stage plot sales, with gross funding options of up to 72.5% of loan-to-gross development value and up to 87.5% gross loan-to-cost.

Loans ranging from £1m to £10m are available, structured with a regional relationship-led model that Assetz says ensures continuity from initial enquiry through to redemption.

“The combination of improved loan terms, greater certainty and faster decisions gives our clients the edge they need in a competitive market,” said Fraser.

“Our institutional funding structure enables us to pass on savings in real time, giving developers confidence to move decisively.”