The Recent Budget: Mortgage Guarantee Scheme

March 11, 2021

Mortgage Guarantee Scheme...

This scheme has a tremendous benefit to our developer clients. For example, a client intended to sell circa 50 houses to an Affordable Housing Institutional Investor. The certainty of a sale at 80% of true value to a Housing Association was appealing. However, with the above Mortgage Guarantee Scheme now available, the developer client has decided to sell on the open market and achieve 95% of value instead of selling to the Institutional Investor at 80% of value. The subsequent increase in project profitability exceeds £1 million.

As you are aware, we, as an office, continually evolve to provide new development finance facilities for you to discuss with your professional associates. With this in mind, I can confirm that the following are now available:

• 100% loan to costs with profit share.

• 90% loan to costs with no profit share throughout the U.K.

• 90% loan to costs with no profit share and no personal guarantees in the south of England.

• Offshore funding in Gibraltar, Spain, The Canaries, The Channel Islands, Isle of Man and Southern Ireland.

• Larger project funding throughout Western Europe (unfortunately no equity investors).

I hope that the above is of interest to you and that you agree that there is no better time to be involved in development funding.

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