Specialist real estate lender Pivot has cut its interest rates by 200 bps, with its bridging finance and development finance now starting from 6% per annum above BoE base rate.
Pivot has broadened its lending since its management buyout in February, backed by Foresight Group. The lender has expanded into commercial development finance and reduced pricing across its loan products in England, Scotland and Wales.
Its bridging finance and development finance loans range from £2m to £15m, with terms of up to three years. The funding is aimed at developers and investors who need to acquire, build and stabilise property at each stage of a project.
Pivot says the simpler pricing structure and lower rates will widen its reach among borrowers with proven experience.
Maximum leverage on its bridging finance and development finance products is:
- Residential development finance: up to 70% LTGDV and 90% LTC
- Commercial development finance: up to 65% LTGDV and 85% LTC
- Development exit and stabilisation finance: up to 70% LTV
- Residential bridging: up to 75% LTV
- Commercial bridging: up to 65% LTV
Recent completions include:
- Harrogate: £6.7m acquisition and development loan for a 28-unit scheme combining new homes, converted buildings, offices and a café within a former mill complex.
- Newcastle-under-Lyme: £10m senior refinancing for a 273-bed student accommodation scheme.
- Gloucester: £5m facility to convert a vacant office building into a special educational needs school with capacity for 120 pupils.
- Aberdeen: £3.1m, 20-month development facility at 70% LTGDV for a ground-up project of commercial ground-floor units and 16 apartments.
“We’ve been working hard behind the scenes to make our offering as competitive as possible, while still reflecting the specialist nature of our lending proposition,” said Shahil Kotecha, chief executive at Pivot (pictured).
“Simplifying our rate model allows us to invite more conversations about interesting assets and funding scenarios which we have a strong appetite to support.”
“Our intention is to ensure that our products are accessible and that we are actively supporting SME developers and investors throughout the country, leveraging our market-leading expertise and flexibility of funding.”
