INTERIM LENDING CRITERIA in Response to the Coronavirus Pandemic Blackfinch Property remains very much open for new business. As part of maintaining the highest levels of service for borrowers we have implemented alternative working arrangements. The situation remains extremely fluid and is likely to change further, but below we set out the interim steps we are taking with immediate effect on new lending proposals. Due to the economic slowdown we are factoring in additional stress tests on both bridging and development loans to account for possible sales and construction delays. In effect, these interim criteria will reduce our loan to value ratios (LTVs) to allow for these additional contingencies as follows: BRIDGING LOANS We are working with a preference for loans with underlying income or income potential. These could include completed developments, or loans with a predetermined exit. i) Where there is underlying income, maximum LTV 65% ii) Where the property is deemed to have strong income potential, maximum LTV 60% iii) Otherwise, maximum LTV 55% The maximum LTVs above will be calculated after having applied a contingency of a further sales delay of six months (reduced to three months if the exit is deemed secure). DEVELOPMENT LOANS i) If a fixed price design and build JCT contract (joint contracts tribunal) is in place with a reputable construction firm and the borrower has a healthy level of net assets for a personal guarantee or cost overruns, maximum LTV 70% ii) If the borrower is project managing sub- contractors or has a weak net asset position, maximum LTV 65% The maximum LTVs above will be calculated after having applied contingencies of: i) A nine-month delay to achieving practical completion on construction; and ii) A further sales delay of six months (reduced to three months if there is deemed to be a secure exit).