Hodge eyes strategic growth in commercial lending market with product shake up

Hodge has made significant changes to its commercial property products, with a new commercial investment product launched and criteria changes to its development finance product.

Historically, Hodge has specialised in commercial investment and development lending but has focused more on the residential markets during the pandemic. However, Hodge are now widening their product offering again as part of its targeted growth strategy across the commercial lending market – and as it has seen demand increase for more diverse funding for multiple asset classes – it has reacted by looking at its product portfolio.

As such, Hodge has launched a brand-new product aimed at experienced property investors who favour buying a mix of commercial buildings. Its Commercial Investment Finance product is for those investors looking to buy real estate assets such as office buildings, industrial, retail, leisure and mixed-use buildings.

The maximum individual loan size on Hodge’s Commercial Investment Finance is £5m, with £10m aggregate to borrowers in common ownership. Loan to Value (LTV) ratios of up to 75% are available with loan terms, floating or fixed rate, for up to five years.

Hodge has also made changes to its Development Finance offering, where Hodge will now lend on residential and alternative residential  asset classes, including student accommodation and retirement living, as well as commercial developments. Furthermore, Hodge’s appetite extends beyond just development finance and seeks to convert either residential or commercial development facilities into longer term investment finance for those clients who wish to retain their assets once development is complete.

Developed specifically for experienced developers, it offers loans of up to £5million, but a minimum of £1million, over a 24-month term, with up to 80% LTC and 65% LTGDV.

Kevin Beevers, managing director of commercial lending at Hodge, said of the changes: “Having worked in this industry for nearly two decades, there has been a definite shift in appetites of both developers and property investors over the past few years to more diverse developments and portfolios.

“We have been working closely with our intermediary partners on what their clients want and need, and believe we have come up with some great changes and a new product that will hopefully help more investors who have historically not been well served by commercial finance otherwise.

“We are excited by the changes we have made to our products offerings over the past few months and look forward to working with as many intermediaries, and their clients, on finding finance solutions for their development and commercial project needs,” Kevin added.