Instant bridging finance News:-The construction industry is grappling with the challenge of supply chain disruptions, staff sickness and site closures caused by the coronavirus.
The National Federation of Builders, NFB, said members had reported issues of absence due to self-isolation and this was likely to change rapidly in the next few days.
NFB chief executive, Richard Beresford, said: “The government and the construction sector needs to also recognise the risk of mass absence from construction sites and the potential impact of delayed payment resulting in the need to lay staff off or make redundancies.”
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| 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 | ||
The trade body said clarity over insurance was an area it would be discussing with government ministers.
NFB housing and planning head, Rico Wojtulewicz, said: “Over half of our industry are self-employed people who are going to want to say working. There’s concern about ensuring that people will still get paid.”
A treasury spokesperson said construction firms would need to check their insurance policy to see if they were covered for pandemic viruses and government-ordered closures.
“A pragmatic and dynamic risk-based approach, supported by the government is needed,” stressed Mr Beresford.
He said his organisation was in constant contact with members and was organising a surveyto find out the impact of the spread of the virus.
Construction trade bodies Build UK and the Civil Engineering Contractors Association announced a raft of measures in the wake of the virus including splitting teams and long-distance working.
Government announces a raft of loans to help businesses
Chancellor, Rishi Sunak’s announcement yesterday to offer loans of £330 bn from March 23 to help business with cash flow was welcomed by the wider business community.
The new business interruption loan scheme for small and medium-sized businesses will provide loans of up to £5 million, with no interest due for the first six months.Micro-businesses would be eligible for £10,000 grants helping an estimated 700,000 enterprises. The Bank of England is to offer low-cost commercial loans for larger businesses.
Federation of Small Businesses national chairman Mike Cherry said: “The key now is to deliver these measures within the coming days with no hold-ups at banks, local authorities or central government.”
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Brokers Hank Zarihs Associates said lenders could also help with different types of fundingincludingshort-term bridging finance.
The government has postponed the introduction of new IR35 rules aimed at stopping employees registering as freelance contractors for 12 months.
