Octopus Property has launched a new low-priced development finance product to expand its residential development lending range.
The new facility will be priced at 0.54% per month, or 6.5% per annum, for loans up to 60% loan-to-gross development value.
Octopus said a key market differentiator is the exit fee of 1%, which is charged on the gross facility amount rather than the GDV, which makes its pricing competitive.
The lender provides a range of financing products to for acquisitions and development.
Its various lending rates are:
- 60% LTGDV – rates from 0.54% per month (6.5%pa)
- 65% LTGDV – rates from 0.66% per month (8%pa)
- 70% LTGDV – rated from 0.83% per month (10%pa)
- 1% Exit fee charged on gross facility amount only
Emma Burke, head of development origination, said: “We can now offer developers lower rates to reflect lower leverage requirements and structure flexible loan facilities to reflect the varying complexities of each scheme. Having built such a strong and experienced team we can both assess and complete loans extremely swiftly, which continues to differentiate us from our peer group.”
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