Designed for housebuilders with a track record of delivery, the platform will provide loans between £2.5m and £20m, up to 75% loan-to-cost with a maximum loan-to-GDV of 65%.
The funding will be prioritised for the development of family homes, townhouses, suburban homes and modern family dwellings for sale to the local domestic market within established communities.
Santander will look after all client interactions and manage the platform.
SME housebuilders who want to access the finance will be required to have a track record of completing schemes of a similar size and complexity.
- Topland completes £75m of new lending in Q1
- Generator Group and Topland join forces
- Moat secures £135m backing from Lloyds and Santander
“The residential development financing platform offers a competitive whole loan solution to the sector as a dedicated provision led by a mainstream lender,” said Andrew Whelan, managing director of real estate finance at Santander Corporate & Commercial.
“Our aim is to support proven SME housebuilders throughout the UK and help promote greater housing supply — something that the UK desperately needs.”
To allow access to finance at an earlier stage of the development, there is no minimum pre-sales requirement.
Tom Betts, director of structured finance at Topland Group, said that it was delighted to partner with Santander Corporate & Commercial in this new venture.
“This will see two experienced UK real estate lenders come together to provide a tailored lending solution to the UK SME housebuilding market.
“We believe this is a compelling proposition and look forward to expanding our existing development lending portfolio into mainstream markets to deliver the vital additional housing the country needs.”