A specialist development and bridging finance lender has announced a reduction in its interest rates for development funding.

Bridging Loans Ltd, based in Glasgow, has announced the plans that sees a reduction in its interest rates from 1.65 per cent to just 1.5 per cent per month with immediate effect.

The rates offered almost match that of those available for projects in London and selected areas of Central Scotland, which currently stand at 1.45 per cent per month.

The product will now offer a highly competitive option to developers and builders, with facilities up to £750,000 per project and interest that is only charged on the amount of capital being drawn down.

Speaking on the enhanced product, David Levitus, Director of Bridging Loans Ltd, said: “We have had an excellent first five months of 2013, and have observed a distinct upturn in the amount and quality of development enquiries from all over the United Kingdom. 

“Previously, the greatest concentration of property developments was in the South-East of England. 

“The Government’s new-build mortgage initiatives such as the New Buy and Help to Buy Schemes in England, and the MI New Home and LIFT Schemes in Scotland, seem to be encouraging new construction activity throughout the whole of the UK.”
 
Below is the current product suite offered by Bridging Loans Ltd:

Bridging Finance (Residential)
•    0.95% per month in London
•    1.25% per month outside London

Commercial Finance 
•    1.25% per month in London
•    1.45% per month outside London

Development Finance
•    1.45% per month in London
•    1.5% per month outside London

Through these schemes, the Government can provide assistance to 1st and 2nd time buyers of new homes, with the aim of stimulating demand and therefore encouraging builders to undertake new residential property projects.

David continued: “This upturn translates into reduced risk for ourselves, as a Principal Lender, and hence we are now able to offer improved rates to our English and Scottish clients seeking development finance. 
"We are very hands-on, both prior to and during the projects we are funding, and we are confident that this approach, combined with our low rates, will attract many new builders and developers to use Bridging Loans Ltd. 

“As one of the largest private lenders in Scotland, we are delighted to meet with prospective clients and developers at our Glasgow office, although we can cater equally well with enquiries from ‘down South’. 

“Our new development rate fits in well with the company's straight forward product structure, and our friendly and experienced underwriting team welcomes approaches from both introducers and developers alike.”