Construction Loans News:- Keep your supply chain up and running by paying suppliers and staff, urges construction trade body, Build UK.
The organisation called on construction firms to act responsibly following the chancellor, Rishi Sunak’s announcement on Friday, March 20, of a raft of business support measures.
“The aim is to keep cash flowing through the whole supply chain so that businesses of all sizes can survive the current crisis,” it said.
Build UK wants firms to hang on to their apprentices and to keep constructions sites going until advised otherwise.
Construction Loans by HZA
Brokers Hank Zarihs Associates said the property development funding sector was keen to continue supporting SME housebuilders with a range of finance including short-term bridging loans.
| 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 | ||
Build UK said it would release its proposed standard operating procedures on protecting site workforce later in the week.
Co-operation between private and public sector
The trade organisation called on the industry to support the NHS with supply medical grade, or equivalent, personal protective equipment such as masks, gloves, gowns and goggles.
Build UK said the Cabinet Office has published a procurement policy notice for the public sector to continue paying firms, who have temporarily stopped delivery due to coronavirus risk, until the end of June.
“Suppliers will need to act on an open book basis, make cost information available to the contracting authority, and continue to pay employees and sub-contractors,” advised Build UK.
Public authorities will be able to enter into contracts or modify existing ones without going through the normal tendering procedure, although certain rules will still apply.
Build UK has published a summary of the emergency schemes the government has released to help businesses overcome the Covid-19 pandemic. These include deferral of paying forthcoming VAT bills from now until the end of June to the end of the next tax year.
Income tax payments due in July 2020 under the self-assessment system will be deferred to January 2021, to help the country’s 5.7m self-employed businesses.