Budget 21: Devil is in the detail for new recovery loans scheme
Budget 21: The new recovery loan scheme, set to replace the Coronavirus Business Interruption Loans Scheme (CBILS) and other support schemes, is welcome news, according to Phil Mabb, property finance broker at Bridge Development, as long as the details add up.
Mabb told Specialist Finance Introducer: “Ultimately, it’s a good thing for brokers and our clients. Clients will be delighted that there are future opportunities for further support.
“However, as we’ve discovered with CBILS, it’s all about the details, and lenders’ interpretation of them.”
Although details of the scheme are yet to be confirmed, the fact that the spread of loans available has been widened is a positive sign, according to Mabb.
He said: “There are still a lot of borrowers in need of this support.
“It’s a pleasant surprise that it covers smaller and larger budgets. The actual ticket sizes can be smaller and quite a lot larger.
“But the rumour on the street is it’s not going to be quite as generous for certain things, such as soft costs.”
Furthermore, he raised questions around how much of the allocated funds would trickle into the property finance market in the end.
Mabb said: “Ultimately, how much will be allocated into the real estate sector?
“£280m sounds like a lot of money on the face of it but when you actually look in the context of where it’s going, it can soon get gobbled up.”