UKs Blend Network, which was once described as a peer to peer (P2P) lending service provider but has now become a specialist development finance lender, recently introduced a bridge product intended to support property developers across the United Kingdom.
The Blend Network team has explained that the latest product launch has been announced after the firm acquired another sizable institutional funding line – which reportedly came in the form of committed capital to extend support to UK property developers.
After realizing the key challenges UK property developers faced during the last year and a half, Blend has decided to introduce an “exit bridge” which will aim to support developers with carrying their projects until a reasonable sale offer is made.
As reported by local sources, the new product is meant for UK property developers with completed residential projects who are dealing with the expiry of their current loan facilities with lending service providers who are not interested in carrying the project for a longer period of time.
The innovative product is expected to offer relief to property developers who have been negatively impacted by difficult market situations and enable them to carry their completed initiatives until a competitive sale price is available.
Blend Network explains that its product offers facilities of anywhere between £500,000 – £5 million with LTVs between 70% -75%, and is reportedly priced at 0.95%-1.1% each month.
In certain scenarios, Blend Network explains that it may release equity so that property developers may begin financing their next initiative.
Yann Murciano, CEO at Blend Network, said:
“For the past seven years, BLEND has been supporting mid-size property developers across the UK … Have there been issues with the projects we’ve funded? Yes, undoubtedly. But our business model is based on supporting developers and working with them, not against them.”
He added:
“So, where our developers have faced issues with their schemes, we have worked closely with them to find solutions that help them overcome the challenges. The past 18 months have been very challenging in the market. The launch of our new bridge sends a strong message to developers: we want to work with you and support you.”