Bridging Financing News:- Small and medium-sized building firms are calling for a three-month tax holiday on VAT, pay as you earn and construction industry scheme contributions to prevent wide-spread insolvencies.
The Federation of Master Builders, FMB, has written to the chancellor, Rishi Sunak, and business secretary,Alok Sharma, asking for immediate support in the wake of the coronavirus.
They say three-quarters of their 7,500members have reported delayed or cancelled projects and just under two-thirds have seen a fall in enquiries. Nearly one in ten have had to make some redundancies.
FMB chief executive, Brian Berry, said: “The government must intervene as a matter of urgency if small building companies are to protect their workforces, avoid further job losses, and prevent building companies going to the wall.”
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 FMB would like the £25,000 cash grant for the retail and hospital sector extended to construction firms. It’s also calling for assurances that the coronavirus business interruption loan scheme is introduced immediately and is quick and easy to use.
Remote working not an option for most construction workers
Nearly all of the trade body’s members, 98 per cent, have estimated that only one quarter of their staff can work from home.The FMB is calling forthe equivalent rate of statutory sick payto be applied to the self-employed who fill 37 per cent of industry jobs.
It’s also calling for the government to work with the Construction Industry Training Board to help employers keep their apprentices.
“We mustn’t allow a repeat of the 2008 recession when one in three SME construction firms left the industry. Building new homes and levelling-up infrastructure will be key to rebuilding our economy after the virus has passed, and the government will need an army of builders in place to deliver that,” said Mr Berry.
Bridging Financing by HZA
Brokers Hank Zarihs Associates said appropriate help was crucial to ensure building carried on and that development finance lenders could continue to offer financial funding.