Author: Dax McLean

Are you wondering how to buy a house before selling yours?

Ideally, a homeowner would choose to sell a property within the same property transaction chain as when purchasing, however in reality this ideal is not always possible.

There are many scenarios that may occur that prevent the sale of the property from taking place before the subsequent purchase and therefore short-term finance may be required.

Short-term finance methods such as bridging loans can provide a solution to secure the purchase of a property before a currently owned property has been sold.

This may be urgently required in situations such as a buyer pulling out of a chain or a slow property market resulting in the owned property not being sold when needed.

In this guide, we will explore bridging loans in more detail including how the finance option works and at what point are the borrowed monies repaid.

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What is a Bridging Loan?

A bridging loan is a method of short term secured finance that can fund a property purchase whilst the sale of other assets is still in progress.

A bridging loan can enable a property transaction to take place without delay by applying owned equity within a current property as a deposit towards another property.

The result of which is that the mortgage holder owns multiple properties while further transactions are proceeding.

Bridging loans can be arranged at short notice and promptly, therefore should a reviewed homebuyer need to move fast, they can be the perfect solution comments Homebuyers4u.

Typically, the loan is offered for up to twelve months, although other durations may be possible depending on the circumstances.

Like many other financial products, there are considerations to be aware of such as often, bridging loans are subject to arrangement fees and exit fees. Interest is also applicable and is usually charged monthly.

Commonly there is the option available to defer the repayment of interest until the end of the term. Should this option be selected, the interest would be payable at the end of the bridging loan term. Along with the principal amount, providing cost savings during the loan term compared to other financial products such as a standard mortgage, where this option is not usually available.

It should be noted that if the interest repayment is postponed, the total loan must include the total interest total due over the period.

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Read our related quick help guides: 

• Bridging loans for property development.
• A guide to bridging loans brokers.
• Bridging loan examples.
• Alternatives to bridging loans.
• Development finance.
• Construction loans.

Common Reasons for Using a Bridging Loan

Example 1 – Downsizing with the use of a Bridging Loan

Homeowners often seek to downsize their property with the objective of reducing or paying off the current mortgage, decreasing household bills or maintenance requirements however sometimes a downsize requirement can also be the result of a change in personal circumstances such as divorce or ill health.

The use of a bridging loan can enable the purchase of a smaller property before the current, larger property is sold, which can be useful in many scenarios when time is of the essence for the new purchase however, the currently owned property isn’t ready for sale yet.

Example 2 – Purchase of a Retirement Property

This example of purchasing a retirement property could face similar challenges to the downsizing example above. There may not be delays due to purchasing a retirement property as often there is ample supply however, additional time may be needed before the sale of property owned due to sorting possessions or undertaking renovations.

Example 3 – Buying Property Quickly such as at Auction or Due to a Relocation

Sometimes a property purchase needs to be undertaken rapidly either due to a change in personal circumstances such as a property relocation or due to the nature of the method of purchase such as at an auction. A bridging loan can be an ideal solution to finance a relocation move whilst the original property is put on the market, whereas purchasing property via an auction requires completion within 28 calendar days and therefore access to funds promptly is required.

Example 4 – Purchasing a Property Which Would Not Obtain a Standard Mortgage

Another use for a bridging loan could be to purchase property that would not typically meet the criteria of standard mortgage such as properties without functional kitchens and bathrooms or properties with structural concerns. The bridging loan could be used to purchase the property and undertake the necessary renovations to make the property habitable, at which stage a standard mortgage application could be submitted.

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When would a Bridging Loan be Repaid?

When a request is made for a bridging loan, the repayment strategy must be specified within the application, clearly detailing a plan of how the loan will be repaid at the end of the term.

Often, in a simple transaction where a bridging loan is used to purchase property while the sale is of other assets are still progressing, the repayment strategy is straightforward as the proceeds of the sale will pay off the additional borrowing. If the reason for the bridging loan is more complex, a more detailed repayment plan would be required, however, in any circumstance our brilliant team of experts can assist.

How to Access Bridging Loans

Bridging Loans can be obtained via specialised finance brokers who have access to the financial market and can therefore provide knowledge, guidance and quotes on a wide range of financial products. Brokers can also find the most favourable interest rates and borrowing terms for the homeowner’s circumstances.

In addition to accessing a wider choice of financial products, brokers can also assist with the application process.

How to Buy a House Before Selling Yours Summary

There are many benefits to bridging loans including the flexibility and speed offered by this method of short-term finance. In addition, bridging loans can be applied against both residential and commercial property types, therefore providing a prompt funding solution for a variety of investment opportunities.

As with any financial transaction, there will be positives and negatives associated with the financing options available, and therefore it is highly recommended that independent financial advice is sought as early as possible, to review the circumstances of the situation as well as the financial products that may be able to assist.

Call us today on 03330 90 60 30 or contact us. One of our advisors can talk through all of your options with you.

If you are dreaming of developing a property but are overwhelmed with obtaining finance to make this happen, you have come to the right place!

You may already be a property developer needing to change direction with a next investment, or a budding new developer.

Either way, we can help guide you through the process of securing finance for development projects of any size.

What is Property Development Finance?

Property development loans are short term financial products that can be utilised to build a new property or to develop existing properties.

Such loans are a secured type of lending and can be obtained for a range of different development projects including residential houses, commercial property or industrial buildings.

Property development finance is an attractive method of borrowing due to the flexibility offered to the applicant and can also be a cost-effective way of funding development projects.

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What is the Application Process of Development Finance Loans?

Due to the specialised nature of property development finance, the use of a broker is highly recommended to aid the application process. Brokers perform many services from assisting with the initial market research and comparing lenders to assisting with the application itself and liaising with the preferred lender throughout.

An application for property development finance requires gathering lots of information about:

• The applicant themselves including their current financial circumstances.
• Details of other assets to be used security.
• Thorough details of the planned project.
• A documented proposed exit strategy.

The lender would review an application in its entirety, sometimes requesting further information and undertake the usual credit checks. If successful, an agreement in principle can be issued.

At this stage, further investigations are undertaken including a site visit to ensure project viability and an independent valuation of the project is forecast. Should the findings of these investigations be sufficient, a formal loan offer and terms can be issued.

Any legal elements would be taken care of next, followed by the completion of the loan and the first drawdown payment.

Read our related quick help guides: 

• Bridging loans for property development.
• A guide to bridging loans brokers.
• Bridging loan examples.
• Alternatives to bridging loans.
• Development finance.
• Construction loans.

What are the Advantages of Development Finance?

One of the main benefits of property development finance is that this type of borrowing can enable access to a higher level of finance than traditional borrowing methods.

Typically, should the borrowing be required for the initial purchase of the site or plot, the amount that can be borrowed at this stage is typically between 50%-60% of the purchase price of the property.

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In addition, developers can usually also borrow up to 100% of the build costs, providing that the total amount is within 60-70% of the gross development value. However, as with most lending, the actual figures offered to an applicant may vary depending on the personal circumstances and details of the project itself.

Another huge benefit of property development finance is the flexibility offered, such as drawing down finances as needed throughout the project as well as having fewer restrictions when it comes to settling the loan.

These elements also ensure that borrowing costs are kept to a minimum as interest is only charged when monies are drawn, and monies are not borrowed for longer than needed.

What are the costs involved with Development Finance?

There are various costs applicable to borrowing via property development finance, however, these will vary between lenders. Typically, this type of finance will be subject to;

• Facility fees – Or otherwise known as arrangement fees are calculated as a percentage of the total value of the loan.
• Interest – Interest can be charged monthly or annually, however in comparison with standard mortgages, the interest rates are higher due to the short-term nature of the financial product. Although, as already discussed, the flexible way that interest is charged is likely to be cost-effective compared to other methods of borrowing.
• Exit fees – A fee payable on repayment of the loan is common. This fee can be calculated in different ways, either as a percentage of the value of the monies borrowed, or the total value of the project.
• Broker fees – Broker fees will often vary between companies.

It is always best to check the terms of lending upon receiving an offer to compare such fees. Again, a specialised broker will be best placed to assist with the comparison of offers between lenders, ensuring that the most favourable terms are selected.

Other project costs to be aware of when investigating developing property

All development projects will incur other costs that will need to be factored into a business plan needed for the application process. These will include;

• Valuation fees – As with most property transactions, a valuation will be required and there will be charges for this.
• Legal fees – The cost of any legal advice throughout the project as well as charges to undertake the legal transaction of the property will need to be considered.
• Monitoring fees – Due to the nature of development finance, lenders will usually need to monitor the progress of the project. All costs attributed to monitoring are to be paid by the borrower.
• Transaction fees – Lenders will typically charge each time an instalment payment is paid to the developer throughout the project for both the administration and the banking fees.

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How is property development finance repaid?

Either at the end of the term of the loan or beforehand, if desired, the development loan would be repaid. Often repayment would involve one of the following;

• Sale of the property – Upon completion of the sale, the property development loan would be settled in full.
• Refinance – There would be a range of refinancing options available to be considered at the end of the initial finance duration period, depending on; the circumstances of the borrower, the plans with the development property and the timeframe of such plans. For example, the developer may choose to rent out the property at this stage, and therefore a landlord type of finance may be sought for a longer term of borrowing.

How much can you borrow with a bridging loan?

The exact amount you can borrow will depend on a variety of factors, one of the major considerations being the purpose of the loan.

For example, if you are borrowing against a residential property, it may be possible to borrow up to 80% of the property value. The lower the loan to value (LTV), the lower the interest rates, with some lenders offering interest rates at 50% LTV.

For non-residential properties, such as commercial properties and land, it may be possible to borrow up to 70% LTV.

This means that if the property is worth £100,000, the maximum you could borrow (including your existing mortgage) would be £70,000.

Choosing a Bridging Loan

Before researching the market to commence comparing various bridging loans, a few key facts will be required about the loan and properties that will be involved.

• The ideal amount to be borrowed – Typically, lenders will offer bridging loans between £5,000 and £10 million.
• The value of the owned property – The value of the currently owned property will impact how much that can be borrowed and the loan rates available.
• The duration of time the loan is required – Best estimations are used to map out how long the additional funds are required for, for example, the timing of a housing purchase chain and the required legal process. As discussed above, the duration of the loan will define the type of loan needed.
• The equity owned within the property – The level of equity and whether there is a mortgage currently on the property will affect how much additional funds can be borrowed.

Property Development Finance Summary

Property development finance can be a highly attractive form of short-term, cost effective borrowing due to the flexibility offered via the terms of the lending.

For most developments requiring finances of £25,000 and above, development finance may be the most suitable type of loan, however as with all large financial decisions through impartial financial advice should be obtained before committing.

In addition, as with all secured borrowing, the property and security deposits are at risk should repayments not be made.

The use of a specialised broker is highly recommended to ensure that the chosen financial product is the most competitive available and that all terms are fully understood.

Give us a call on 03330 90 60 30 or get in touch for advice that is personal to you and takes your credit history into account. That way you will know where you stand in the development finance market and we can guide you on your route to securing a suitable loan.

Construction or development loans are types of financial products to be used to build a new property or to develop existing properties.

As with any financial products, there are risks to the lender however these are amplified where first-time developers are concerned and therefore sometimes new developers can find it tricky to obtain finance to commence new projects.

Even experienced developers can sometimes face challenges when securing finances for projects depending on a range of factors linked to the project, personal circumstances or the market conditions.

What is a Construction Loan and what are the application criteria?

Construction or development loans are short term, secured lending products that have been created for the purpose of funding the development of the property. The type of property can include residential houses, commercial property or industrial buildings.

Should the borrowing be required for the initial purchase of the site or plot, the maximum amount that can be loaned is typically between 50%-60% of the purchase price of the property.

Sometimes lending of up to 100% of the build costs can also be applied for, providing that the total amount requested is within 60-70% of the gross development value.

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The application process for development finance will usually vary between lenders and requests are often analysed on a case by case basis. The lender would need to review the business plan of the development including the estimated costs including the stages at which the funding is required to be released.

The lender will also require information on the applicant’s personal circumstances, financial background and experience within the building and construction industry.

The lender would analyse all of the information provided within the application and undertake the usual background and credit checks as required when applying for any financial product.

The application process can involve ongoing requests for additional information throughout the analysis phase and therefore can become a lengthy, complex and time-consuming process. Developers often find using a financial broker beneficial as the broker can provide assistance with the application, which is sometimes known as loan packaging.

If an application is successful, an agreement in principle can be issued.

At this stage, further investigations are undertaken including a site visit to ensure project viability and an independent valuation of the project is forecast. Should the findings of these investigations be sufficient, a formal loan offer and terms can be issued.

The legal process would then take place for both parties, followed by the completion of the loan and the first drawdown payment.

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Read our related quick help guides: 

• Bridging loans for property development.
• A guide to bridging loans brokers.
• Bridging loan examples.
• Alternatives to bridging loans.
• Development finance.
• Construction loans.

What is loan packaging?

As briefly mentioned, the assistance that an expert financial broker can provide during the application process of a construction loan is known as loan packaging. This process will include ensuring that the lender has sufficient information to make a decision on the borrowing request, which will often include a business plan and timeline of the proposed project summarising:

• The purchase costs of the land plot and or current building.
•  The detailed costs of the building work to be undertaken during the development project.
• Detailing all of the additional costs that will be required throughout the project such as; finance costs including interest, exit fees and any broker or arrangement fees, the costs of insurance, costs of paying any utilities or council tax during the project plus any professional fees for advice or services.
• Full disclosure of any possible legal issues that may arise during the project.
• A thoroughly costed exit plan advising how the financing will be settled at the end of the term of loan. Often an exit strategy involves either the sale of the property or refinancing.

The process may require regular communication between the lender and applicant representative while the lenders undertake thorough due diligence of the applicant and project itself. Therefore, the use of a specialised broker to manage the progress and respond to queries directly is highly recommended.

How does a Construction Loan work once approved?

Following an offer from a lender, the finances will be released at set stages throughout the project. The duration of the stages will be agreed in advance and will depend on the type of project itself, however, they could be for example:

• Stage 1 – Purchase of the land or existing property.
• Stage 2 – The development stage, which would often be split down further into stages depending on the nature of the building project.
• Stage 3 – Sale of the property and settlement of the construction loan.

The number of drawings from the total loan value would be agreed upfront and also have an agreed schedule to match the planned programme of works.

There will be some degree of flexibility of the duration of the stages, especially as even the best-made plans can easily go off the rails during the project due to external elements such as the weather or materials or labour resourcing issues.

However, the overall maximum duration of the loan will be set out within the application and lender’s offer.

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What are the Advantages of Construction loans?

The main benefit of a construction loan is that it allows borrowers to have access to larger sums of money than traditional borrowing methods.

The flexibility available with this type of finance is also a major benefit to developers, both with the ability to plan and fund the project in stages, but also to provide a method of keeping the costs of borrowing as low as possible. The costs are kept low due to the fact that interest is only charged when monies are drawn.

Construction Loans Summary

Construction finance is a short-term, cost-effective and flexible type of borrowing that is suitable for a range of development projects. Such financial products are rarely found on a typical high street and therefore are usually applied for and accessed via a specialised broker.

Specialised brokers have access to a wider market of financial products and varied specialist lenders and therefore can assist in obtaining the most competitive borrowing terms and interest rests.

As with all secured borrowing, the property and security deposits are at risk should repayments not be made and therefore any investment decisions should be fully considered before committing, along with the consequences should developments not go to plan.

Give us a call on 03330 90 60 30 or get in touch for advice that is personal to you and takes your credit history into account. That way you will know where you stand in the construction loans market and we can guide you on your route to securing a suitable loan.

Bridging loans can provide a solution to secure that perfect property quickly before there has been an opportunity to sell other property.

Throughout this article, we will explore bridging loans in more detail, including running through a few examples of how this type of loan can be used in various scenarios.

What is a Bridging Loan?

A bridging loan, also known as gap finance, is the financial term commonly used to describe a method of short term secured finance that funds a property purchase whilst the sale of other assets is still in progress.

A bridging loan enables the property transaction to take place, without delay by applying the equity owned within a current property as a deposit towards another property. The result is that the client owns multiple properties while further transactions are proceeding.

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What are the Differences Between a Bridging Loan and Standard Mortgage?

Duration

The short-term nature of a bridging loan, that provides the flexibility required in certain circumstances is the major difference between a standard mortgage. Most standard mortgages have a repayment duration of up to 35 years, whereas a bridging loan usually will typically have repayment terms of between 12 and 24 months.

Speed

Often a lender’s decision on a bridging loan application will be received within a few days, which is substantially quicker than the response from a standard mortgage application.

This speed in the approval process can provide flexibility and aid decision making for purchasers. One example of where the speed of approval can be crucial is when a property chain breaks down by a buyer pulling out. In this scenario, the ‘upward chain’ of the purchase could be salvaged by the use of a bridging loan.

Deferring interest

The repayment of interest can be delayed on bridging loans until the end of the loan period. If this option is selected, the interest would be payable at the end of the bridging loan term, along with the principal amount.

This option can provide significant cost savings during the term of the loan compared to a standard mortgage, where this option is not usually available. However, a consideration is that if the interest repayment is postponed, the total amount borrowed must include the interest total due.

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Loan to value rates

There is often higher loan to value lending available via a bridging loan compared with a standard mortgage. Typically, a bridging loan’s terms could offer a loan to value rate of up to 80%, offering increased flexibility with financing.

Exit strategy

With a standard mortgage, the principal value is paid off throughout the duration of the loan, however with a bridging loan an exit strategy is required to map out a plan to pay off the loan. Due to the short-term nature of a bridging loan, an exit strategy will need to be proposed during the application process, detailing a plan of how the loan will be repaid at the end of the loan.

Property type

High street lenders will not offer finance against properties with certain characteristics such as; properties without functional kitchens and bathrooms or properties with structural concerns, however, the criteria for bridging loans are often more flexible and therefore may be an option should the property type be an issue upon a standard mortgage application.

Read our related quick help guides: 

• Bridging loans for property development.
• A guide to bridging loans brokers.
• Bridging loan examples.
• Alternatives to bridging loans.
• Development finance.
• Construction loans.

Bridging Loan Examples: 

Example 1 – Buying a House with a Bridging Loan

It has become more commonplace within recent years for bridging loans to be used to fund the purchase of a house, due to the benefits of this type of finance, such as:

• Speed – A bridging loan can usually be arranged promptly and therefore the property purchase can often complete quickly. The property chain can often treat purchasers using bridging loans as cash buyers and therefore can be favoured above other contenders that need to sell the property first, before proceeding.
  An example of where the speed of a transaction is crucial is at a property auction when an investor would require access to funds quickly to fund deposits so they do not miss out on the property lot. Other scenarios when the speed of a property transaction may be beneficial include; investment purchases or the funding of business ventures, tax bills or divorce settlements.
• Flexibility – Bridging loans lenders are specialised and therefore often have different borrowing criteria to high street lenders. As such, potential borrowers with a less than perfect credit score, or those fluctuating incomes could be granted access to this type of loans, secured against the property value.
  Bridging loans can also be used to break a mortgage chain providing increased flexibility of the timing of further property purchases.
• Variety -Bridging loans can be applied against both residential and commercial property types, including building plots without planning permission, therefore providing quick access to funding for a variety of investment opportunities.

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Example 2 – Downsizing with the use of a Bridging Loan

Within a downsizing scenario, the property owners may require a slower-paced property hunt, either to undertake renovations on the property that will be sold or to provide extra time to search for the perfect smaller property. Therefore, a bridging loan could finance the gap between the sale of the larger property, to fund the downsized purchase.

With a longer timeframe available, the market can be scoured for the best lending rates available.

Example 3 – Relocation

A property relocation may sometimes be needed for a variety of reasons such as a work opportunity or family commitments, however often timings can be challenging. In these circumstances, sometimes a new property is required to be purchased for the relocation purpose before currently owned property is sold. A bridging loan can be an ideal solution to finance the move whilst the original property is put on the market.

How much does a Bridging loan Cost?

The interest costs on bridging loans can seem fairly high, typically around 0.4% – 1.5% a month, however the duration of the loan must be considered to calculate the overall costs.

There are also additional charges to be taken into consideration such as arrangement fees, and sometimes exit fees applied by the lender. As with a standard mortgage, legal fees, valuation costs and bank transfer fees will also be payable.

Bridging Loan Examples Summary

As with any financial transaction, there will be pros and cons of the options available, and therefore it is recommended that advice is sought from an independent mortgage advisor to review the entire situation as well as the applicants’ personal circumstances.

Specialist brokers often have access to the entire financial market and can therefore provide a wide range of quotes from a wide variety of bridging lenders.

Give us a call on 03330 90 60 30 or get in touch for advice that is personal to you and takes your credit history into account. That way you will know where you stand in the development finance market and we can guide you on your route to securing a suitable loan.

Development loans, also known as bridging finance, are short term loans that can be utilised to build a new property or to develop existing properties, for a range of purposes including residential houses, commercial property or industrial buildings.

Development finance is a type of secured lending, typically available at values of £25,000 and above.

This type of financial product is available, depending on the circumstances of the applicant, even if they are a first-time developer, and the duration of development finance is often between 12 and 36 months.

Read our related quick help guides: 

• Bridging loans for property development.
• A guide to bridging loans brokers.
• Bridging loan examples.
• Alternatives to bridging loans.
• Development finance.
• Construction loans.

Usually, there are no early repayment charges applicable on development loans, and therefore this type of finance can be a flexible and cost-effective source of finance for developers or investors.

Should the finance be required for the initial purchase of the site or plot, the maximum amount that can be borrowed at this stage is usually between 50%-60% of the purchase price of the property.

Check Today's Best Rates >

Development finance for purchasing the site would usually include criteria that the site was already subject to suitable planning permissions required for the development.

In addition, developers can sometimes borrow up to 100% of the build costs, providing that the total amount is within 60-70% of the gross development value.

The lender would usually review build cost borrowing on a case by case basis and provide any additional terms as required. Funds are available to the developer in stages and interest is usually only charged on the funds that are drawn.

What are the Advantages of Development Finance?

The main benefit of development finance is that enables borrowers to have access to much larger levels of money than traditional borrowing methods.

Also, this type of finance is available on a range of properties that traditional mortgages would not be, such as unhabitable buildings.

As previously mentioned, the flexibility available with development finance is a major benefit to investors, both with the ability to plan and fund the project in stages, but also to provide a method of keeping the costs of borrowing as low as possible.

The costs are kept at a minimum as interest is only charged when monies are drawn but also as there are fewer repayment restrictions, enabling the finance to be repaid quickly.

Recommended reading: Guide to Bridging Loans Brokers.

What are the costs involved with Development Finance?

There are various fees applicable to development finance, however, these will vary between lenders. Typically, this type of finance will be subject to:

• Facility fees – Or otherwise known as arrangement fees are calculated as a percentage of the total value of the loan.
• Interest – Interest can be charged monthly or annually, however in comparison with standard mortgages, the interest rates are higher due to the short-term nature of the financial product.
• Exit fees – A fee payable on repayment of the loan is commonplace. This fee can be calculated in different ways, either as a percentage of the value of the monies borrowed, or the total value of the project.
• Broker fees – Broker fees can vary in amounts but also between different charging methods. Some brokers receive a commission from lenders on successful loan applications and therefore do not charge clients directly, however, others will set a fixed fee for their services.

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Other costs will also need to be factored into a business plan including:

• Valuation fees – As with most property transactions, a valuation will be required and there will be charges for this. Where the valuation for a development differs, is that an assessment will be made, projecting the valuation of the completed development project.
• Legal fees – Any legal advice throughout the project as well as undertaking the legal transaction of property that has been developed will need to be paid for.
• Monitoring fees – Due to the nature of development finance, lenders will usually need to monitor the progress of the project. All costs attributed to monitoring are borne on the borrower.
• Transaction fees – Lenders will typically charge each time an instalment payment is paid to the developer throughout the project for both the administration and the banking fees.

What is the Application Process of Development Finance Loans?

Due to the specialised nature of development finance, brokers are often used to research the market, provide advice and compare lender offers.

Following this initial stage, an application would be submitted to the selected lender. An application for development finance would include details of;

• The applicant including their current financial circumstances.
• Details of other assets to be used security.
• A documented proposed exit strategy.

The lender would then review an application in its entirety and undertake the usual credit checks. If successful, an agreement in principle can be issued.

Check Today's Best Rates >

At this stage, further investigations are undertaken including a site visit to ensure project viability and an independent valuation of the project is forecast. Should the findings of these investigations be sufficient, a formal loan offer and terms can be issued.

Any legal elements would be taken care of next, followed by the completion of the loan and the first drawdown payment.

How is Development Finance Repaid?

Either at the end of the term of the loan or beforehand, if desired, the development loan would be repaid. Often repayment would involve one of the following;

• Sale of the property – Upon completion of the sale, the development loan would be settled in full.
• Refinance – There would be a range of refinancing options available to be considered at the end of the initial finance duration period, depending on; the circumstances of the borrower, the plans with the development property and the timeframe of such plans. For example, the developer may choose to rent out the property at this stage, and therefore a landlord type of finance may be sought for a longer term of borrowing.

Development Finance Summary

Development finance is a short-term, cost-effective and flexible type of loan suitable for a range of development projects. Such financial products are rarely found on the high street and therefore are usually accessed via a broker.

As with all secured borrowing, the property and security deposits are at risk should repayments not be made.

Give us a call on 03330 90 60 30 or get in touch for advice that is personal to you and takes your credit history into account. That way you will know where you stand in the development finance market and we can guide you on your route to securing a suitable loan.