By Amelia Isaacs on Tuesday 24 January 2023
HSBC will provide up to £100m and the British Business Bank will support the transaction to tackle the undersupply of homes.
According to LendInvest, the facility increased its assets under management to more than £3.6bn, giving investors opportunities to gain exposure to the UK property finance market.
“Smaller property developers have a key role to play in making up this shortfall. The guarantee from the British Business Bank and the funding from HSBC, combined with our expertise in lending, is key to supporting these developers.”
The development finance scheme specifically helps to support smaller property developers in an attempt to plug the gap in the delivery of homes.
The Enable Guarantee programme is aiming to encourage lenders to increase their advances to smaller businesses, with the government taking on a portion of the risk on a portfolio of loans for a fee.
“Unlocking finance through this facility is a great example of the difference the ENABLE Guarantee programme can make in the market,” British Business Bank managing director Reinald de Monchy said.
“Thanks to this new partnership, LendInvest will be able to help more smaller property developers build more homes across the UK.”