White papers on the four structural problems in UK ADC lending. Each paper covers one problem and how continuous monitoring addresses it.
A 100% risk weight on an ADC exposure is not permanent. Several Article 124K conditions can fail during the loan lifecycle without notifying the lender. Each exposure that flips to 150% adds a discrete RWA increase. This paper covers which conditions are at risk mid-loan and what continuous eligibility monitoring requires.
Read the paper →Most UK development lenders fund drawdowns monthly and review projects quarterly. Between a drawdown approval and the next QS visit, an average of 23 days passes with no visibility into where funds actually went. This paper covers the three blind spots that creates, and how to close them.
Read the paper →Credit papers assess the developer thoroughly and the contractor minimally. The contractor builds the project. Each lender only sees their own portfolio, so a contractor overextended across multiple lenders' books is invisible to all of them. This paper explains what cross-portfolio contractor data changes at origination and during the loan.
Read the paper →Every ADC facility is underwritten against a GDV set at origination. The market moves continuously after that. Without live market monitoring, LTGDV covenant drift and Article 124K eligibility erosion develop silently until a formal revaluation is triggered. This paper covers what continuous market monitoring catches and when.
Read the paper →SPI and CPI are the right metrics for ADC monitoring. The problem is cadence. They arrive every 60 to 90 days. By the time slippage appears in a QS report, it has already compounded. This paper explains how continuous programme monitoring works and what it doesn't replace.
Read the paper →What does "prudent underwriting" actually mean for ADC lending? This paper maps every Article 124K condition to the evidence a lender needs, from origination through to repayment. Covers pre-sales, pre-leases, borrower equity, reclassification triggers, and portfolio-level reporting.
Read the paper →The PRA leaves critical terms undefined: "substantial" deposit, "significant portion," "prudent" underwriting. This paper maps every requirement in the rulebook, separates what is prescribed from what is left to lender judgement, and sets out the evidence needed for each.
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