London Credit has initiated a pilot programme for its development finance offering, aiming to refine its approach before a broader release.
- The pilot offers up to 70% loan-to-gross-development-value (LTGDV) targeting a select few schemes to fine-tune services.
- Jake McCausland has been recruited to lead this expansion into development lending, marking a new strategic direction.
- London Credit currently delivers bridging loans ranging from £100,000 to £3.5 million, serving various property types.
- The pilot is structured to align with the specific needs of developers, ensuring a gradual and informed market entry.
London Credit has embarked on a strategic pilot programme for its new development finance offering, focusing on refining its lending and service provisions before a comprehensive market introduction. The programme features loans up to 70% loan-to-gross-development-value (LTGDV), selected to ensure that the product meets the specific needs of brokers and their clients.
Recruitment of Jake McCausland earlier this year signifies London Credit’s commitment to this strategic shift towards development lending. McCausland is tasked with steering the pilot programme, which represents the first phase of their broader expansion strategy.
Currently, London Credit extends bridging loans from £100,000 to £3.5 million, covering residential, commercial, and semi-commercial properties located in London, the South East, and major cities. The terms range between three to eighteen months, providing a degree of flexibility within the property finance market.
In the words of Mr. McCausland: “At London Credit, we understand that development finance is a very specialist area of lending, and it’s important to ensure both product and processes are built to meet the specific needs of developers.” This statement underscores the tailored approach London Credit is adopting, intending to execute a phased rollout that thoroughly tests the proposition.
The initiation of this pilot programme highlights London Credit’s measured approach to innovation and market adaptation. By focusing initially on a limited number of schemes, the firm is well-placed to gather necessary insights and adjustments will be made to optimise their offering before a full-scale launch.
London Credit’s cautious and detailed approach is set to refine its development finance proposition, ensuring alignment with developer needs before a wider rollout.
