- 16th May 2019
- Posted by: DMM
- Category: Development Finance
There may be over one hundred potential specialist banks for property development funding and so how do you narrow down to the best banks for stretch funding? Each bank will be offering a plethora of products from senior development funding, stretch facilities, mezzanine funding, exit finance, buy-to-let refinance and so on. Consequently, narrowing down to the best banks for stretch funding and, furthermore, those that offer terms that will suit your development will take some homework.
There are a small number of key national funders specialising in development finance such as Close Brothers, The Royal Bank of Scotland and so on. But stretch development funding tends to be a more specialist product that is offered by many smaller private lenders.
What is Stretch Development Funding?
The term stretch development funding can sometimes be interpreted differently by different people but, in this instance, we are referring to a combined senior debt, together with a mezzanine slice and combined into one loan with a blended interest rate.
The products offered by the best banks for stretch funding will be many and varied with rates ranging anywhere from 8.25% to 19%, terms from three months to 36 months, and loan to cost from 85% to 100%. Stretch development funding is also available for some sizable deals too with some of the best banks for stretch funding offering facilities from £500,000 to £100million!
- Stretch Lending Rates from 8.25% to 19%
- Terms from 3 months to 36 months
- Facilities from £500,000 to £100million
- Loan to cost from 85% to 100%
- Loan to Value of up to 75%
Developer Money Market can offer a fast, online funding search that will enable an easy comparison of the best banks for stretch funding. Simply enter the key information about you and the project and we will match against the available loan facilities. Not sure if stretch development funding is for you? Contact our funding support team for guidance.