InterBay completes £17.5m remortgage on major South East residential development

07 May 2026

Specialist property lender InterBay has completed a £17.5m interest only remortgage on a new residential apartment development in the South East of England, working with broker partners SPF Private Clients.

The development delivers 103 private rented units across three purpose built buildings, offering a mix of one, two and three bedroom apartments, along with underground parking and secure cycle storage to enhance tenant appeal. The clients, who are experienced property developers, intend to retain the development as part of their long term rental portfolio strategy.

The transaction required a bespoke structure, with the in-house Specialist Property Solutions team overseeing origination and working closely with underwriting and completions throughout the process. This included undertaking valuation reviews and stress testing multiple loan exit scenarios, securing support for a non-panel new homes warranty provider, and structuring a deferred charge over the freehold to allow separate completions across the blocks and a phased transition from the development funder. Bespoke interest cover ratio (ICR) calculations were also completed to support a policy exception, reflecting the true operational cost profile of the development.

Rental demand in the area continues to grow, boosted by the recent opening of a new NHS hospital and university campus adjacent to the development, both of which are expected to drive further employment, student growth and housing need.

Marc Callaghan, Head of Commercial Mortgages, InterBay said

"This transaction demonstrates InterBay’s ability to structure large, complex residential investment deals with speed, confidence and a deep understanding of the PRS market. Our InterBay team and Russell Hall at SPF Private Clients worked closely to manage the case from each side, overseeing the deal from start to finish and crafted a solution to match the client’s needs.”

Russell Hall, Executive Director, SPF Private Clients said:

“InterBay were the ideal partner for this transaction. The scale and complexity of the development required a lender that understood

the asset and could move with confidence throughout the process, InterBay delivered on both. Their ability to structure a solution aligned with the client’s long term rental strategy was invaluable and this deal shows why InterBay remains a go-to lender for experienced developers seeking certainty, expertise and a collaborative approach.”