A Newcastle-based specialist lender focused on supporting the construction industry has seen a swell in demand for a financial product aimed at property developers.
High Street Boutique Finance has seen interest in its Development Finance offering soar in the first six months of 2013, with a 30% increase in enquiries, compared to the final two quarters of 2012.
The package was launched last spring after the company recognised many private property developers could not get funding from banks.
Unlike traditional lenders, it will fund 100% of the build costs and can support part-developed schemes.
The company will consider up to £1m finance and allows developers to draw funds when they need them.
Business development manger Willi Thompson said: “The financial landscape has changed drastically since the onset of the credit crunch and private property developers have often found support from traditional lenders hard to come by, or had their funding withdrawn after work has started, with the bank effectively ‘pulling the plug’ on their projects. Many perfectly viable projects have stalled or have never been able to get off the ground.
“As the demand for our Development Finance product shows, many developers are eager to move forward with their projects and are looking for alternative funding.”
He said the company was “delighted to be playing a part in supporting the UK construction sector”.
High Street Boutique Finance is part of The High Street Group, which includes a range of financial services companies and employs 130 people in Newcastle and Sunderland.