Finance for Building Projects
Our Development Finance Service Provides:
- Development finance from £100,000
- Finance for: New build, conversion, minor & major refurbishment
- Residential developments of all types
- Up to 65% GDV finance available
- Up to 100% development cost finance available
- 100% joint venture finance available for experienced developers
Call our property development finance team on 0117 313 6058
How to finance building projects
Finding the right finance for building projects is an essential part of the development process. Many developers use a type of short term finance known as a bridging loan to facilitate their building projects as this allows developments to move forward quickly.
Also known as property development loans, this type of finance can be used for a wide range of development projects, including large commercial developments and smaller private projects such as self-build homes and renovations.
Property development finance of this type will normally be offered over 12-18 months, although longer and shorter terms may be available, depending on the lender. This finance will usually be paid in instalments over the course of the development, which each instalment being released at a pre-agreed point during the build, e.g. when the roof is completed.
Short term finance for building projects such as this will usually be repaid either by refinancing or selling the property or properties once the build is complete.
How to apply for finance for building projects
As part of an application for finance for a building project, most lenders will require:
- A breakdown of your income, expenditures, assets and liabilities
- Copies of recent bank statements
- A project valuation carried out by a lender-approved professional
- Detailed of all project costs
- A projected timeline for the development
- All relevant planning permission documents
- Building regulations consent
- Your National House Building Council (NHBC) insurance details or an equivalent
- An exit strategy for repaying the loan
Costing building project finance
When costing any building project, knowing exactly how much you will end up paying for your development finance is essential. In general there are three main costs you need to be aware of which will impact the total amount you end up repaying.
Arrangement fees – Normally a percentage of the total loan amount, this will be charged when the loan is first provided.
Monthly repayments – As the capital sum is usually repaid in full at the end of the loan term, these will normally be charged on an interest-only basis.
Exit fees – Not all lenders charge exit fees, but for those that do it is generally a percentage of the total loan amount. Whether a lender charges an exit fee and how much it is can make a massive difference to the total amount repayable, so this element of the deal should not be overlooked.
Compare finance for building projects
Getting the right finance in place for your building project can help to ensure a smooth development schedule and boost the profitability of commercial developments by keeping costs low. To find the best possible deal on your development finance, it is necessary to look at deals from all the leading lenders.
Fair Mortgages’ team of experienced development loan brokers can help you quickly find the money you need at the best available rates. We have access to all the leading lenders, including those not available direct to the public, so we can give you the widest possible choice to help you find a fair deal.
To find out more, call Fair Mortgages today on 0117 313 6058 or use our contact form for a quick response.