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Saxon Trust introduces two new development exit products



Saxon Trust has launched a ‘market and sell’ and ‘finish and sell’ development exit offering.


The lender has launched the range following extensive consultation with developers.

The market and sell product will enable developers to sell completed units at maximum value, and potentially release capital to inject into their next project.

With rates starting from 0.57% pm, property investors can reduce the cost of their existing development funding while avoiding extension fees.

The new finish and sell product gives developers to ability to reduce the cost of their finance as soon as their projects reach a wind-and-watertight stage, and can be used when experiencing unforeseen delays.

Rates start from 0.79% pm on this product.

Existing clients will automatically transition from stretch development lending rates to the finish and sell and, in time, market and sell products on a ‘fee-free’ basis.

In doing so, they could enjoy rate reductions of over 40 bps.

Loan sizes are available from £100,000 to £5m, with terms between 3-18 months.

“Developers have endured a challenging period over the last two years; while there are some risks they simply can’t mitigate; these new products give them the control and time to ensure they can complete and sell their units in an orderly fashion,” said Stuart Munden, head of credit and risk at Saxon Trust.

Brian West, head of sales and marketing at Saxon Trust, added: “As a lender, we are always looking to introduce genuinely innovative product ideas.

“With our existing borrowers already enjoying the benefits of ‘fee-free’ product transfers, we look forward to introducing many new developers to the same opportunities.”

 



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