By Oliver Smith on Wednesday 9 September 2020
Government cash deployed via the non-bank lending platform.
Development finance platform Invest & Fund today secured £25m as part of a 7-year partnership with the government’s Homes England to support small builders.
The partnership will see Invest & Fund deploy the capital to builders in loans of between £400k and £2.5m, covering projects of two homes and up with up to 80 per cent loan to cost.
“We are delighted to be partnering with Homes England to help fund the development of the new homes the country needs,” said Invest & Fund CEO David Turner.
“Our approach of employing a best in class credit underwriting model, backed by a strong focus on operational excellence and our culture of good governance has been recognised in this partnership and we are focused on lending to creditworthy borrowers via this venture.”
Homes England is described as the government’s “housing accelerator” which works to unlock land for development and is investing some £4bn to help support the development of new homes.
Its chief investment officer Gordon More said Homes England is “particularly pleased to be working with a specialist finance provider, recognising the crucial role that the Non-Bank lending market continues to play in supporting smaller builders in these challenging times.”
Applications for the new funding are opening via Invest & Fund today, and are offered on 24 month terms and are subject to interest of 6.65 per cent plus the Bank of England base rate, with an additional arrangement fee of 2 per cent.