CROWDPROPERTY has launched two new loan products for borrowers using different types of construction and developer partnerships.
The peer-to-peer property lending platform is now offering a product called Modern Methods of Construction (MMC) Finance that covers building with alternative materials such as modular, structural insulated panel products and insulated concrete form (ICF).
It is also offering a Development Joint Venture Finance product that caters for situations where the developer and an asset owner work together on projects.
Read more: CrowdProperty homes reach £100m milestone
“At a time when housing undersupply is so chronic and sustainable construction is ever-more important, we embrace funding innovative forms of construction,” Mike Bristow (pictured), chief executive of CrowdProperty, said.
“While modular structures and ICF are not new approaches, they are relatively novel in many respects when compared to more traditional construction approaches.
“MMC will play a huge part in the future of housing delivery, proven by the likes of Goldman Sachs investing heavily in the sector.”
Bristow said many mainstream lenders avoid these types of projects.
“Although they offer many benefits, we regularly hear that traditional lenders want to keep these methods at arm’s length,” he added.
“It seems most simply don’t have the in-house expertise to assess and structure them as lending prospects. CrowdProperty is exceptionally well placed to serve this market better: as property people offering property finance, we can see the potential with such propositions whilst structuring the product to mitigate risk – where others just see an unfamiliar project that they’re not prepared to take the ‘risk of lack of knowledge’ on.
“Furthermore, we have supported a growing market for joint venture structures for some time and now have the first dedicated product in the market.”