Assetz Capital has announced a further reduction in its development finance rates, now starting from 8.85%.
The move is aimed at helping SME developers accelerate housing delivery, following a series of completions across Scotland, Yorkshire, the South Coast and Midlands in April.
The lender’s decision follows an earlier rate cut in February and reflects its continued commitment to supporting regional development amid challenging market conditions.
Andrew Fraser, chief commercial officer at Assetz Capital, said: “Our aim is simple: help developers build more homes, faster. Our rate reduction immediately improves the Day 1 advance available to developers, therefore helping developers to break ground sooner, with lower upfront costs and more certainty in funding.”
Fraser added that Assetz Capital is taking proactive steps rather than waiting for central bank action. “We’re staying ahead of the BoE curve because the urgency for housing delivery can’t wait,” he said. “By acting now, we’re giving brokers and their clients the ability to move quickly, reduce finance costs, and maintain profitability—even in a more constrained market.”
The lender is offering up to 72% loan-to-gross-development-value (LTGDV) Day 1 advances and 24-hour credit decisions for straightforward cases, aimed at easing cashflow pressures for developers.
While government planning reforms are welcomed, Assetz Capital notes that their benefits will take time to materialise. Its updated rates and funding processes are available immediately to SME developers across England, Scotland, Wales and Northern Ireland.
Fraser said: “Developers deserve both speed and fairness when it comes to finance. From site acquisitions to the final build phase, we’re providing accessible, fast-track funding that supports sustainable growth in every UK region.”
Since launching in 2013, Assetz Capital has deployed over £1.7bn in lending and has funded one in every 12 SME-built homes in the UK.
