Finance Lenders News:- Business minister, Nadhim Zahawi, has defended private sector enterprises, such as the building industry, still operating in the wake of the Covid-19 crisis.
Mr Zahawi writes in The Telegraph that “we still need to build houses” and sectors such as the construction industry and online delivery retail outlets had been unfairly criticised.
“We have seen some, intentionally or otherwise, wrongly interpreting the current rules, and unfairly criticising businesses that are implementing them correctly.”
He described it as “disappointing” that companies, where staff cannot work remotely, had been attacked for staying open.
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| 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 | ||
“It does not matter whether they appear on that key worker list, what matters is that they follow the rules our government has set out,” he said.
He stressed there would always be some jobs that cannot be done long distance such as housebuilding and online deliveries.
He said these businesses needed to be supported so they could spring back into action when the lockdown was over.
However, the decision by Bovis Homes, Barratt Developments and Taylor Wimpey to prepare sites for closure following the announcement of the lockdown has had a knock-on effect on suppliers.
Major supplier closes
Building materials supplier SIG announced today it would be temporarily closing its trading sites, specifically distribution and roofing, in the UK and Ireland.
In a regulatory news statement to investors, the company said: “We will remain open to service critical and emergency projects, such as for the NHS, energy and food sectors, as well as for safety reasons and to ensure that there is an orderly closure programme.
“We will be reviewing government guidance and measures to support business continuity, as well as market conditions, continuously and will re-open as soon as we can.”
Redrow and Berkeley announced on Friday that difficulties with their supply chain meant they would be winding down sites in preparation for closure.
The National Federation of Builders head of housing and planning policy Rico Wojtulewicz said SIG’s news was a setback.
“These larger companies shutting is having a major impact, it’s frustrating. At the moment construction is to go ahead if they can maintain social distancing rules. Productivity is hugely down because of it. Some of our members have sites with just three people on them.”
He agreed with the business minister that it was important for the industry to carry on referring to the 2008 financial crisis where a third of housebuilders went under and didn’t return.
“This was devastating, if we have this happen again it would be awful. It’s important to keep these guys going if possible.”
Finance Lenders by HZA
Brokers Hank Zarihs Associates said commercial development finance lenders were behind supporting SME housebuilders to finish projects rather than them being left partially completed.