Spring Finance launches development finance division
17 June 2024
Specialist lender Spring Finance (Spring) has today announced the formal launch of its development finance division. Spring’s product range includes ground up development finance for new build sites as well as a light development finance product to fund conversions, change of use, completion of yet to be finished sites and home extension projects.
All products are available for both FCA regulated and non-regulated loans.
Spring is targeting the SME developers, self-build and the home extension market. Day 1 funding is available up to 60% of GDV on ground up projects, and up to 65% of GDV on light development cases. Both products offer funding for 100% of the cost of works with loans available from £100k to £2m. All products have no exit charges.
Having entered the bridging market two years ago, Spring have quickly established themselves as a recognised specialist lender and were recently awarded Highly Commended in the Regulated Bridging Lender of the Year category at the 2024 Bridging and Commercial Awards. Spring is committed to delivering a full suite of specialist lending products and the development financial proposition follows on the back of the expansion into Scotland and the launch of a non-FCA regulated proposition.
Whilst Spring feels the market conditions in the past 12 months have not been right to fully launch this product, they have been inviting in development loans from key partners. With property market conditions improving, base rates on the way down and build costs stabilising the lender feels that now is the time to fully launch the product to the market.
To support this product launch Spring has recently recruited Emmanuel Johnson as underwriting manager for development finance. Emmanuel brings with him a wealth of experience and energy from working with high street banks and specialist lenders. Emmanuel will be working alongside Claire Newman, director of bridging and development finance to launch this new product and continue the build out of the development finance team.
Claire Newman, director of bridging and development finance said, “Spring has grown significantly since the launch of the bridging division two years ago and this is an exciting time in the journey. Our development product will enable us to support our brokers and their clients in particular with regulated self-build schemes which are underserved in the market. Emmanuel is a great addition to the team and with him on board we look forward to growing the development side of the business over the coming months”.
Emmanuel Johnson, development finance underwriting manager added, “Spring Finance puts its clients at the centre of all it does, the launch of this product is yet another example of this. I am very excited to be part of the team and look forward to adding value to the business and seeing it grow.”
Jim Baker, sales director said “We have very ambitious growth plans at Spring with the broker and customer experience at the heart of what we deliver. A key to our growth plans is to offer a full suite of products to service the diverse need of our brokers and their clients. I am delighted to add this solution for development projects to our comprehensive offering of specialist lending products”.
Michael Cartwright, Buildloan said, “We have been happy to support Spring since the beginning due to their flexible approach, access to decision makers and an overall first-class team. It’s great to see Spring move into development finance and support both non-regulated and regulated developments. Their background and deep understanding of development projects, coupled with a first-class team will allow us to place business with confidence. This is a very welcomed product and we are very happy to have this added to the options we can offer our clients’’.
Aaron Noone, Director of Master Finance added,” I recently completed an unregulated ground up development with Spring Finance, choosing them for their attractive no-exit fee proposition – this reflected lower cost than other lenders for my client. This was for an experienced developer with a total facility in excess of £1m. The build was a luxury 4 bed detached property in a great location. I expect the highest level of service from the lenders I work with and the team at Spring delivered this loan way above my expectations. As any broker will say, my client is central to my process and it’s evident, it is with Spring too. I am delighted to see Spring now offering development to the wider market and I have no doubt it will be a great success”.
