Aldermore has boosted support from smaller developers by more than doubling its maximum property development loan.
The specialist lender will now lend up to £25m for SME housebuilders. Previously its maximum loan was £10m.
This specialist lender said this move was in response to increased demand from developers, many of whom are looking to borrow through tailored financing facilities.
The Government has previously stated that it wants to do more to encourage smaller developers to build more properties, in a bid to address the housing shortage in the UK and boost the number of new build properties.
Aldermore said this was part of the bank’s strategy to increase its support for UK housebuilders in 2018.
Aldermore head of property development Simon Knowles says: “We have seen a growing demand from existing and new customers for larger loan limits and we are delighted to provide them with immediate effect.
“Alongside this our personalised underwriting service will continue to ensure that our customers receive tailored support to suit their individual needs.
“It is vital that banks offer the necessary financing to SME developers to help them meet the growing demand for new properties and tackle the significant housing shortage in the UK.”