Assetz Capital cuts development finance rates for third time this year

Assetz Capital has announced a further reduction in its headline ground-up development finance rate, now starting from 8.60%. 

This marks the third reduction in six months, following earlier cuts from 9.10% in February to 8.85% in April. 

In addition to the rate cut, developers can benefit from flexible day one loan advances with a further enhancement for experienced developers to model in early-stage plot sales, with gross funding structures equally available of up to 72.5% LGDV, alongside an option to move to 87.5% gross loan-to-cost. 

Loans are available from £1m to £10m, backed by dedicated regional relationship directors, ensuring continuity and support from enquiry to redemption. Assetz Capital can deliver credit decisions within 24 hours for straightforward cases. 

The new development rate complements a wider suite of solutions including bridging, refurbishment, and exit funding.

Andrew Fraser (pictured), chief commercial officer at Assetz Capital, said: “We’ve acted quickly again to support our borrowers. This latest reduction to 8.60% reflects our belief that fair, accessible finance is vital for SME developers to maintain momentum. Combined with enhanced day one loan advances and our fast-track credit process, we’re enabling clients to reduce stress, improve margins, and move projects forward without delay.

“While the wider economic environment remains unpredictable, our institutional funding structure means we can pass on savings in real time. This gives developers confidence to move decisively, knowing they’re working with a partner who acts transparently and consistently in their interests. 

“We don’t believe in rigid templates. We meet borrowers where they are listening first, advising constructively, and backing their vision when others won’t. That’s the difference between transactional finance and a true lending partner.”