Increasingly we are recognising situations where developers may get to the end of a project to find they either have borrowing in place that is too expensive or that their project is ‘undergeared’. Having depleted their resources, they may have a need for additional funding until their properties start to sell.

To address this need, United Trust bank has created a new Sales Period Funding product. As a short term loan secured by recently completed houses/flats, it is an ideal loan to help see a project through to completion. In typical scenarios the funding will cover the refinancing of an ‘existing debt’ and the construction costs not included in the exisiting facility such as self-funded cost overruns. It may also reduce holding costs.

Example Loan 1

A developer has 5 completed houses with a value now of £1.5m. Their development funding of £0.78m was based on a GDV of £1.3m. They require funds to pay some outstanding supplier invoices and to help fund a new site acquisition opportunity.

A UTB Sales Period Funding Loan at 70% of current value provides £1.050m – £780,000 to satisfy existing creditors and a further £270,000 equity to inject into a new site.

Example Loan 2

A developer has 10 completed flats with a value of £2m. The scheme is part funded by existing debt at £1.3m with interest running at 10% pa on that.

A UTB Sales Period Funding loan at 70% of value i.e. £1.4m (to include interest) at 8%pa reduces the Developer’s holding costs.


For details of our lending criteria, loan conditions and loan security requirements for this funding scheme, see our Tailored Development Finance product guide here.

If you think you could benefit from our Sales Period Funding, don’t hesitate to get in touch to discuss the options available.

You can reach the Development Finance team on 020 7190 5555 or email [email protected]

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