Affirmative Finance: products, terms and eligibility

Affirmative Finance is a UK provider of property development finance. The legal entity named on its site is Affirmative Finance Limited, company number 05044363. It is based in Manchester. Companies House shows the company was incorporated 2004.

Affirmative Finance Limited was incorporated in 2004 (company number 05044363) and is authorised and regulated by the FCA (registration 314258). Affirmative is the trading name of five registered companies: Affirmative Finance Limited, Ascent Funding Limited, Constructive Lending Limited, Sprint Loans Limited and UK Mortgage Corporation Limited. It has a single office in St James Square, Manchester.

Everything on this page comes from what Affirmative Finance publishes itself. We show the date we last checked it, and we do not rate or rank lenders.

Affirmative Finance publishes 3 products for UK businesses. The table above gives the amounts and terms as it states them.

• Residential development finance: Staged facilities; interest charged only on monies drawn.
• Bridging finance: Interest-only, paid monthly or retained from the facility.

Residential development finance

Short-term funding for residential development of between £10,000 and £3 million, which it says can cover land purchase, materials, labour contracts and unexpected project costs. It says that in the right circumstances it can provide 100% of the funds needed. Staged facilities let the borrower draw funds as needed with interest charged only on amounts drawn. It says it lends to developers of all kinds, including first-time developers.

Property refurbishment finance

Short-term funding for refurbishing property, drawn in stages if wanted, with interest only on funds drawn. The standard maximum term is 18 months with no minimum term, and extensions may be possible case by case. Loans can be secured by a first or a second charge; second-charge loans typically have lower loan-to-value ratios.

Bridging finance

Short-term loans secured on property, used for example to buy before a home sells, to fund unmortgageable properties or to finance refurbishment or development. The standard maximum term is 18 months. Borrowers may pay interest monthly or choose retained interest, which adds the total interest to the amount borrowed. It says it lends up to 75% loan-to-value, potentially higher with additional security.

Affirmative Finance says its finance is used for:

• Buying before a home sells
• Funding unmortgageable properties
• Property refurbishment
• Residential development
• Land purchase
• Self-build

Sectors and business types it says it funds:

• Property developers
• Property investors
• Self-build
• Residential, commercial, mixed-use property and land

What it says it does not fund:

• Property outside England, Scotland and Wales

Affirmative Finance publishes these criteria. Meeting them does not mean an application will be accepted: every lender makes its own decision.

• Developers of all kinds, from established companies to smaller builders.
• First-time developers considered.
• Individuals and businesses in England, Scotland and Wales.
• First and second charges offered.

Affirmative Finance describes its process like this:

1. Contact the lender by phone, email or online chat, or complete its decision-in-principle form.
2. The lender gives a decision in principle and, if the case proceeds, an offer letter.
3. Legal and valuation work is carried out.
4. The loan completes and funds are released.

Every application is subject to status and the lender’s own criteria at the time.

Development finance funds the purchase of a site and the cost of building or converting it, with the build money released in stages as work is completed and inspected. The loan is usually repaid from sales or by refinancing the finished property.

Lenders assess the developer’s experience, the costs and the expected end value, and set the loan against both. Understanding how lenders differ before you compare offers helps when weighing terms.

Points Affirmative Finance publishes that are worth knowing:

• No application fee: if the loan does not complete Affirmative receives no payment.
• Interest is only charged on money drawn and no non-utilisation fees are stated.
• Some loans are FCA regulated and the site carries a repossession risk warning.
• Says it lends across England, Scotland and Wales.

Security and guarantees

Loans are secured by a first or second charge on property. Second-charge loans typically have lower loan-to-value ratios than first-charge loans. It says it may lend above 75% loan-to-value with additional security.

Affirmative Finance’s site states: “Affirmative Finance Limited is authorised and regulated by the Financial Conduct Authority. FCA registration number 314258.”

Protections differ by borrower type and loan size. Most lending to limited companies is not regulated consumer credit, so read the agreement and ask the lender what applies to you.

Other providers of property development finance with profiles here include Goldentree Financial Services, Hampshire Trust Bank (HTB) and Mint Property Finance. Each profile uses that lender’s own published terms.

The full list, grouped by product type, is in our directory of UK business lenders.

Capzy is a credit broker, not a lender, and gets paid by the lender. One application lets your business compare options across lenders, so you can weigh this kind of facility against the alternatives. You can check your funding options with a soft search that does not affect your credit score. A full application to a lender may involve a hard search, and any offer is subject to status and lender criteria.