London development lender launches new product

London development lender launches new product



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Welcome news has come to the development finance sector following a difficult couple of years, as privately owned lender, Regentsmead, launches a new product to the market. 

The North-London based finance firm promises that the development lending product will be its most flexible yet, and will greatly benefit introducers trying to get fast development funding to their clients.

 

The new development lending product has an annual interest rate of 9 per cent, which is payable monthly, working out at 0.75 per cent per month. Additionally, funds can be made available within 5 working days of an offer being signed.

 

James Bloom, chief executive of Regentsmead, said that the firm has launched this product following extensive research with their introducers, adding that a more bullish, aggressive attitude must be adopted as the market begins to improve.

 

“We’re cautiously optimistic, we don’t think we’re at the beginning of another big boom but we do want to capture more market share,” he said.

 

“We have reduced the payable interest rate by 50 per cent, which eases cash flow considerably throughout the project, and if you are an introducer this will be a much easier product to sell to your clients.”

 

Post 2007, the unstable conditions in the property market have hindered most development finance activity, but Regentsmead has weathered the storm, with Mr Bloom attributing his firm’s ability to overcome the “challenging climate” to being privately owned with substantial resources, and therefore not having to rely on bank funding lines.

 

Although there is a set criteria – Regentsmead currently lends from the South up to and including the Midlands, and its maximum LTV is 50% GDV, which is now the benchmark in the development finance industry – Mr Bloom says that any introducers will always speak to a decision maker, therefore an immediate answer can be given over the phone within minutes of receiving details of the case.

 

He continued that since the product was launched this week, his team have already received a good number of enquiries and one sign-up.

 

“We’ve always been the market leader for service, now we want to be the market leader for products. This new, flexible product should put us in a uniquely strong position.” Mr Bloom added.

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