Assetz Capital has announced a cut in its headline rate for ground-up development finance to 8.35%, as the lender seeks to widen access to funding for small and medium-sized developers.
The lender offers a range of funding solutions including bridging, refurbishment and commercial mortgage finance. The company said the reduction will help SME developers manage costs and maintain momentum in delivering new housing projects.
The Manchester-based lender will now offer development loans from £1m to £10m, with gross funding structures available up to 72.5% loan-to-gross-development value (LTGDV) and up to 87.5% gross loan-to-cost.
Developers can access flexible day-one advances, while experienced operators will benefit from improved options to model early-stage plot sales.
Assetz Capital said it can deliver credit decisions within 24 hours on straightforward cases. Each project is supported by a dedicated regional relationship director to provide continuity from initial enquiry through to redemption.
The lender has also expanded its criteria to recognise planning gain as a valid developer contribution, enabling borrowers to reduce upfront cash requirements. The change applies to both experienced and less established developers, and aligns with the firm’s first-time developer finance initiative, designed to help capable business and property professionals move into residential development with structured support.
Andrew Fraser, chief commercial officer at Assetz Capital, said: “This latest reduction to 8.35% reflects our commitment to provide certainty of cost for SME developers to maintain momentum.
“By combining lower rates, flexible day-one advances, recognition of planning gain, and our first-time developer enhancements, we’re giving clients the tools to improve margins, and deliver more homes efficiently through Assetz enlarging the SME developer pool.”
He added: “Developers can act decisively, knowing they’re supported by a partner who delivers with certainty. From a single-unit scheme up to more than 50 units, we cover all sizes of developer in all regions with our on-the-ground development experts.”
