UK-based property financer Hilltop Credit Partners (HCP) has secured an additional £20m ($26m) loan-on-loan facility from existing lender OakNorth Bank.

Hilltop Credit Partners will use the fun to support its real estate development funding channel.

The latest loan-on-loan facility brings the total to £50m ($65.33m).

Founded in 2018, HCP offers tailored financing solutions to help housing developers fund their projects.

The fund is backed by Round Hill Capital, a global real estate investment firm based in London, UK.

OakNorth Bank senior director of debt finance Mohith Sondhi said: “We look forward to building further on our partnership with Hilltop Credit Partners.

“Combined with Round Hill Capital’s commitment and expertise in this space, Hilltop understands what it’s like to be in the developer’s shoes and how important it is to react to the inevitable market changes that can occur during a project especially during these unprecedented times.”

Hilltop Credit Partners CEO Paul Oberschneider said: “We are delighted to have increased our facility with OakNorth Bank, which shows their confidence and commitment to our business.

“Like us, they have a demonstrable understanding of the needs of sophisticated investors, and with the property comprising a significant portion of their own lending portfolio, they have a deep understanding of the underlying asset class.”

Hilltop Credit Partners CIO Tiger Craft said: “We have a growing pipeline with great sponsors, while the structural imbalance between the demand for new housing and the availability of capital to fund it continues to grow.

“For SME developers, securing funding has been needlessly frustrating, time-consuming, and expensive for far too long.

“At Hilltop, our entire process is focused on helping developers move quickly to acquire sites, build homes, and sell them in a fast, cost-efficient manner.”