Pivot Cuts Bridging and Development Finance Rates by 200 Basis Points

ByExpertBrokerUK

Specialist real estate lender Pivot has cut its interest rates by 200 basis points (2%). Its bridging and development finance now starts from 6% per annum above the Bank of England base rate.

The loans are aimed at experienced developers and investors, with sizes from £2 million to £15 million and terms of up to three years, across England, Scotland and Wales.

Background

Pivot completed a management buyout in February, backed by Foresight Group, and has since broadened its lending, including a move into commercial development finance. The lender says a simpler pricing structure should widen its reach among borrowers with a proven track record.

Published maximum leverage includes:

  • Residential development finance: up to 70% LTGDV and 90% loan-to-cost
  • Commercial development finance: up to 65% LTGDV and 85% loan-to-cost
  • Development exit and stabilisation finance: up to 70% LTV
  • Residential bridging: up to 75% LTV
  • Commercial bridging: up to 65% LTV

Chief executive Shahil Kotecha said the change was intended to invite more conversations about interesting assets and to support SME developers and investors around the country.

What this means for developers

Rate cuts of this size are notable, particularly at the larger end of the market. They come at a time when overall bridging and development activity has slowed and lenders are working harder to win well-structured deals.

For SME developers, the practical lessons are:

  • Pricing is moving – terms you were quoted months ago may no longer reflect the market.
  • Experience counts – the best pricing is typically reserved for borrowers with a proven track record.
  • Structure matters – loan-to-cost, loan-to-GDV, fees and drawdown arrangements all affect the true cost of a scheme.
  • Plan the exit early – development exit and stabilisation finance can buy time to sell or let units on completion.

If you have a scheme in planning or under way, it may be worth reviewing your funding position.

Figures quoted are as published by the source on the date shown and may have changed. They are not an offer or indication of terms available to you.

Source: “Pivot cuts bridging finance rates by 200 bps”, Property Reporter, 16 October 2026 – read the original article

This article is general information, not advice. ExpertBrokerUK is a broker, not a lender. We arrange unregulated finance for business and investment purposes. Your property may be repossessed if you do not keep up repayments on a loan secured on it.

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