Bridging Loans News:- Builders merchants are re-opening their doors after the government told them to stay open to support the construction industry supply chain.
Howdens, Huws Gray, Jewson, Ridgeons, Selco and Travis Perkins closed their branches yesterday, March 24, following the government’s advice on Monday that people should stay at home.
However, the government told them via their trade association, the Builders Merchants Federation, BMF, to continue operating.
BMF chief executive, John Newcomb, said during a construction leadership taskforce meeting the department of business, energy and industrial strategy had told them to continue operating.
“Ideally, this should be through online and delivery services, but those who need to maintain depot service are able to do so providing they observe Public Health England guidance including social distancing, cleaning and hygiene, staff welfare and all other means to minimise the risks of transmitting coronavirus,” said Mr Newcomb.
In a statement, the trade body highlighted that builders’ merchants were a vital part of the construction supply chain.
“It is important that they continue to support the industry to operate on sites, especially where it is undertaking essential work, and also to continue to provide the link between product manufacturers and the firms and tradespeople that use and install the products they make,” it said.
Existing construction sites stay open
The government has confirmed that for jobs where it is impossible to work from home, people can continue to go to work providing they follow the official Public Health England guidelines.
Housing minister, Robert Jenrick, tweeted yesterday that it was “worth remembering” there were some housing construction functions that were ‘essential’. He said keeping buildings safe and essential maintenance and repairs in homes such as sanitation systems and boilers must continue.
Our Bridging Finance range covers auction purchases, to private sales and all levels of refurbishment works. Bridging finance is ideal when you need funding fast, with minimal fuss or paperwork.
| Product | Max LTV | Up to 50% LTV | 50.01 – 65.00% LTV | 65.01 – 75.00% LTV | Term & Repayment | Arrangement Fee |
|---|---|---|---|---|---|---|
| Residential
Including Light Refurbishment
|
Up to 75%
Lower of PP or MV |
0.43% pm | 0.53% pm | 0.60% pm | Maximum term 24 months No minimum interest or ERCs Interest Fully Rolled Up, Part-Rolled Up or Serviced (subject to affordability) The net advance will be less total potential interest over the term with the gross loan calculated as interest for the entire term and the arrangement fee added. |
1% -1.5%
Full fee added to
the loan. |
| Semi Commercial
Including Light Refurbishment
|
Up to 75%
Lower of PP or MV |
0.6% pm | 0.6% pm | 0.6% pm | ||
| Commercial
Including Light Refurbishment
|
Up to 70%
Lower of PP or MV |
0.75% pm | ||||
| Residential
Heavy Refurbishment
|
Up to 75%
Lower of PP or MV |
0.60% pm | 0.65% pm | 0.7% pm | ||
| Commercial and Semi Commercial
Heavy Refurbishment
|
Up to 70%
Lower of PP or MV |
0.83% pm | 0.83% pm | 0.7% pm | ||
The BMF said online deliveries can operate as normal, although drivers should seek to follow social distancing. Merchants with stores open to the public should consider whether to continue to do so or limit the number of customers. The BMF said they should think about how to improve cleaning and hygiene to minimise the risk of coronavirus transmission with additional staff welfare facilities.
Bridging Loans by HZA
Brokers Hank Zarihs Associates said development finance lenders were behind the government’s decision and were still offering construction loans and instant bridging finance.