SDKA rescues distressed developer after previous lender alters policy mid-term

20 November 2025

An experienced developer who fell into financial difficulties when their development finance lender changed the policy mid-term is back on track thanks to a £180,000 Residential bridge from SDKA.

Through their broker, the applicant explained that they were working on a development of four properties in Liverpool and their existing funder had raised the required payment sum per property sale up to 100% of net sales proceeds, having initially been agreed at 75%.

The move caused several late payments and a high debt burden, with the developer eager to repay the existing lender and raise cashflow to continue work on the scheme.

Having taken stock of the situation, SDKA agreed the application with 12-months retained interest to help resolve the lack of income. The deal was concluded at a fixed rate of 0.95% per month at 75% LTV, with security a residential, four-bedroom end-terrace in Wigan.

Exit will be achieved once the last property on the site has sold.

Kunal Mehta, managing director of SDKA, said:

“The applicant was put in a difficult situation by the development finance lender, and sometimes people simply need a helping hand to get back on track.

“We pride ourselves on considering all cases on an individual basis, and with our proven lending record and close long-term relationships with our funding partners we always have the option to complete cases outside of standard criteria.”

SDKA is an unregulated bridging lender offering products on Residential, Semi-Commercial and Commercial properties across England, Wales and Scotland.

The lender offers interest rates from 0.84% per calendar month, up to 75% LTV, with terms up to 24 months up to a maximum loan size of £10m.