MSP Capital launches lowest bridge rate for two years with £50m tranche
MSP Capital customers can now access development exit bridging loans from 0.8 per cent a month, its lowest rate since 2022, under a ring-fenced £50 million funding allocation.
The pot, part of the fixed-rate lender’s current funding structure, is aimed at developers keen to access a more affordable and competitive bridging rate as they complete projects and move to the next.
There are no exit fees and borrowers can unlock up to 70 per cent LTV on loan periods of four, six and nine months, with extensions available up to a full term of 15 months.
Adam Tovey, MSP Capital’s director of risk and underwriting, said the allocation would support greater diversity in the funding of residential schemes, especially in the firm’s South of England heartlands.
Adam, who joined the company in 2010 and leads a team accountable for all lending and credit risk, said: “We strongly believe the time is right for a lower rate for our development exit product.
“The Bank of England base rate has held at 5.25 per cent, the general election is imminent, and homes on the market have grown faster than sales agreed across England.
“We’ve ring-fenced these funds to support our developer customers with a specific development exit bridging loan that provides them with flexibility to wait for sales and options for capital release for future projects.
“While sales can still be slower in the current market, it shows shoots of improvement, and we’re keen to provide the support with the right funding solutions for our clients.
“It’s a time-limited offer designed to give developers more breathing space and flexibility as they wait for a finished scheme to sell.
“We believe this will be highly attractive for those seeking that all-important competitive advantage as they await the right buyer and move on.”
The allocation applies to recently completed, new-build residential properties at practical completion.
Individual properties must be under £1.5 million in value, with a maximum total loan of £5 million. Properties must be vacant and ready to sell.
