Development finance lender, Assetz Capital, is increasing its LTGDV to 72% and loan-to-cost (LTC) to 87.5% for SME housing schemes.
The move is designed to accelerate housebuilding, improve cash retention, and ultimately support SME developers in bringing more homes to market faster through retaining equity to acquire further sites.
This change follows Assetz Capital’s recent rate launch in January, where it reduced development finance rates from 9.1%.
Assetz Capital offers nationwide coverage to developers across England, Scotland, Wales, and Northern Ireland.
Andrew Fraser, chief commercial officer at Assetz Capital, commented: “Developers need funding certainty and strength of large funding from day one, our enhanced senior lending terms for housing provide precisely that. By increasing our LTGDV to 72%, it means we’re offering a more aggressive and developer-friendly solution that reduces the equity burden, improves cash flow, and speeds up project delivery through providing stronger day-one advances on all housing deals.
“A lower equity requirement, means developers contribute less upfront capital, freeing up cash for other projects. Reducing the need for mezz will keep things more profitable and allow developers to spread their cash across more schemes.
“Our mission is simple: to enable more homes to be built, faster. We’re ensuring the UK’s development sector remains focused on accelerating housing delivery through smarter, fairer funding solutions. Lower equity requirement, means developers contribute less upfront capital, freeing up cash for other projects by giving a higher day 1 advance is part of this solution.”
