Blend Network launches new development finance product
Blend Network has launched a new development finance product with up to 75 per cent loan-to-gross development value (LTGDV) and up to 90 per cent loan-to-cost.
The Blend Network Blended facility is available to experienced property developers looking to do residential schemes of up to £10m gross development value across the UK.
The peer-to-peer property lending platform said the product effectively blends mezzanine and senior debt into one single facility, which makes it quicker and easier for developers to borrow in one place without having to structure the deal with several lenders.
Read more: Blend Network gains approval for FCA direct authorisation
“With our new Blended facility, we are offering our experienced developers pre-Covid levels of LTGDV,” said Yann Murciano, chief executive at Blend Network.
“At a time when most lenders have capped their gearing at 65 per cent post-pandemic, we are sending a strong signal to the market that we are ready to back established property developers who want more cash than what other lenders can offer them.
“Our game is to support developers by lending to them more than other lenders can afford to lend. So, effectively we are offering an alternative to challenger banks who are more constrained by their credit terms.”
Read more: Blend Network updates product prices
“We’ve spoken and listened to property developers,” said Roxana Mohammadian-Molina, chief strategy officer at Blend Network.
“What many experienced and established developers are saying is that there are no shortage of opportunities in the current market, yet many deals are being lost due to the constrained nature of many lenders who have a limited understanding of the true requirements of the development process.
“That’s why we are saying to experienced developers loud and clear: if you have a good scheme and need to up your gearing to make it work, we’ll back you. We will offer you more cash than other lenders, we will max your gearing.”
Earlier this month, Blend Network launched a new development finance product with a built-in sales guarantee.
Read more: P2P property platforms not worried about drop in transactions
