InterBay has completed a £17.5m interest-only remortgage on a new residential apartment development in the South East of England.
The specialist property lender worked with broker partner SPF Private Clients on the transaction, which is secured against a 103-unit private rented scheme.
The development comprises three purpose-built buildings, with a mix of one, two and three-bedroom apartments, as well as underground parking and secure cycle storage.
The borrowers are experienced property developers and intend to retain the scheme as part of their long-term rental portfolio.
InterBay said the transaction required a bespoke structure, with its in-house specialist property solutions team overseeing origination and working closely with underwriting and completions.
The work included valuation reviews, stress testing multiple loan exit scenarios, securing support for a non-panel new homes warranty provider, and structuring a deferred charge over the freehold to allow separate completions across the blocks and a phased transition from the development funder.
Bespoke interest cover ratio calculations were also completed to support a policy exception, reflecting the operational cost profile of the development.
InterBay said rental demand in the area is being supported by the recent opening of a new NHS hospital and university campus adjacent to the development, which are expected to drive employment, student growth and housing need.
Marc Callaghan (pictured), head of commercial mortgages at InterBay, said: “This transaction demonstrates InterBay’s ability to structure large, complex residential investment deals with speed, confidence and a deep understanding of the PRS market.
“Our InterBay team and Russell Hall at SPF Private Clients worked closely to manage the case from each side, overseeing the deal from start to finish and crafted a solution to match the client’s needs.”
Russell Hall, executive director at SPF Private Clients, added: “InterBay were the ideal partner for this transaction. The scale and complexity of the development required a lender that understood the asset and could move with confidence throughout the process, InterBay delivered on both.
“Their ability to structure a solution aligned with the client’s long term rental strategy was invaluable and this deal shows why InterBay remains a go-to lender for experienced developers seeking certainty, expertise and a collaborative approach.”
