Spring Finance Launches Development Finance Division
Specialist lender Spring Finance has launched a development finance division, offering ground up development finance for new-build sites and light development finance to fund conversions, change of use, completion of yet to be finished sites, and home extension projects. This move marks a significant expansion of their product range, which already includes bridging finance.
The development finance division will target small to medium (SME) developers, self-build, and the home extension market. Day one funding is available up to 60% of gross development value (GDV) on ground up projects, and up to 65% of GDV on light development cases. Both products offer funding for 100% of the cost of works with loans available from £100,000 to £2m; all products have no exit charges.
Spring Finance’s development finance division offers flexible funding options for developers.
Spring Finance entered the bridging market two years ago and has since expanded into Scotland and launched a non-regulated proposition. The lender has been testing the development finance waters by inviting in development loans from key partners, but with property market conditions improving, base rates on the way down, and build costs stabilising, they felt it was the right time to fully launch the product to the market.
To support this product launch, Spring recently recruited Emmanuel Johnson as underwriting manager for development finance. Johnson has worked with high street banks and specialist lenders and will work alongside Claire Newman, director of bridging and development finance, to launch this new product and continue the build-out of the development finance team.
“Spring has grown significantly since the launch of the bridging division two years ago, and this is an exciting time in the journey,” said Newman. “Our development product will enable us to support our brokers and their clients in particular with regulated self-build schemes which are underserved in the market.”
The Spring Finance team is committed to supporting brokers and their clients.
The launch of the development finance division is a key part of Spring Finance’s ambitious growth plans, which focus on offering a full suite of products to service the diverse needs of their brokers and their clients.
“We have very ambitious growth plans at Spring, with the broker and customer experience at the heart of what we deliver,” said Jim Baker, sales director. “A key to our growth plans is to offer a full suite of products to service the diverse needs of our brokers and their clients.”
The development finance division has already received positive feedback from brokers, who appreciate the flexible approach and access to decision-makers that Spring Finance offers.
“We have been happy to support Spring since the beginning due to their flexible approach, access to decision-makers, and an overall first-class team,” said Michael Cartwright at Buildloan.
With the launch of the development finance division, Spring Finance is poised to become a one-stop-shop for brokers and their clients, offering a comprehensive range of specialist lending products.
The development finance division offers brokers and their clients new opportunities for growth.
