Securing funds in a higher rate environment



The Bank of England monetary policy committee recently took further steps in combating the country’s inflation woes with a further 25bps addition to the base rate, with some strong indication that we could be looking at additional rate adjustments throughout the year.

But, of course, this type of monetary policy is nothing new; if you go back to the 1970s, we once saw an eye-watering 17% temporarily hit the housing market hard; for people that believe in indicators, the circumstances arose as a result of war, rising oil prices, and trade union activity…. sound familiar?

Since the 1970s, though, the financial markets have become infinitely more complex and compartmentalised. Hence, while historically difficult times meant a near economic paralysis, specialist sectors are now geared up to provide customers with options that work even in a rising rate environment.

Now more than ever, there is a requirement for developers to act to secure their projects over the next 12-24 months, and that means ensuring facilities are in place that won’t dramatically shift in price, that won’t suddenly become unaffordable come phases 2 & 3, or won’t suddenly be withdrawn due to a lack of appetite.

Invest & Fund believes in structuring its client offering so that they can get the best deal available today, secured for the long term. Unlike the legacy financial sector, we aren’t carrying the weight of vast infrastructure, so we don’t need to pass those costs to our clients. We are also a solutions-based business; flexibility is key.

We are the new modular approach to development finance lending, and we believe that you will see that in our product offerings and the close relationships we offer.

If your clients want to lock in rates that work for them, speak to our team today, and we will be happy to assist.