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Development Finance Call 0117 313 6058

Details sort by initial rateLenderInitial rate Rate type Overall cost for comparisonMax LTVProduct feeMonthly cost Enquire
Initial rate: 0.92%
Rate type: Fixed 27 months
Monthly cost: £559.89 per month
Max LTV: 60%
Product fee: £999
Overall cost for comparison: 3.2% APRC
Barclays Mortgage logo 0.92% Fixed 27 months 3.2% APRC 60% £999 £559.89 per month get quotes Call us0117 403 4474 Broker Only Deal
Initial rate: 0.92%
Rate type: Fixed 27 months
Monthly cost: £559.89 per month
Max LTV: 60%
Product fee: £995
Overall cost for comparison: 3.2% APRC
NatWest logo 0.92% Fixed 27 months 3.2% APRC 60% £995 £559.89 per month get quotes Call direct0800 068 8567
Initial rate: 0.92%
Rate type: Fixed 27 months
Monthly cost: £559.89 per month
Max LTV: 60%
Product fee: £995
Overall cost for comparison: 3.2% APRC
NatWest Int Sols logo 0.92% Fixed 27 months 3.2% APRC 60% £995 £559.89 per month get quotes Call us0117 403 4474 Broker Only Deal
Initial rate: 0.92%
Rate type: Fixed 26 months
Monthly cost: £559.89 per month
Max LTV: 60%
Product fee: £1,499
Overall cost for comparison: 3.9% APRC
Platform logo 0.92% Fixed 26 months 3.9% APRC 60% £1,499 £559.89 per month get quotes Call us0117 403 4474
Initial rate: 0.92%
Rate type: Fixed 27 months
Monthly cost: £559.89 per month
Max LTV: 60%
Product fee: £995
Overall cost for comparison: 3.2% APRC
Royal Bank of Scotland logo 0.92% Fixed 27 months 3.2% APRC 60% £995 £559.89 per month get quotes Call direct0800 068 7706
Initial rate: 0.94%
Rate type: Fixed 27 months
Monthly cost: £561.24 per month
Max LTV: 60%
Product fee: £999
Overall cost for comparison: 3.2% APRC
HSBC logo 0.94% Fixed 27 months 3.2% APRC 60% £999 £561.24 per month get quotes Call us0117 403 4474
Initial rate: 0.94%
Rate type: Fixed 24 months
Monthly cost: £561.24 per month
Max LTV: 60%
Product fee: £999
Overall cost for comparison: 3.3% APRC
Nationwide BS logo 0.94% Fixed 24 months 3.3% APRC 60% £999 £561.24 per month get quotes Call us0117 403 4474 Broker Only Deal
Initial rate: 0.94%
Rate type: Fixed 27 months
Monthly cost: £561.24 per month
Max LTV: 60%
Product fee: £995
Overall cost for comparison: 3.2% APRC
NatWest logo 0.94% Fixed 27 months 3.2% APRC 60% £995 £561.24 per month get quotes Call direct0800 068 8567
Initial rate: 0.94%
Rate type: Fixed 27 months
Monthly cost: £561.24 per month
Max LTV: 60%
Product fee: £995
Overall cost for comparison: 3.2% APRC
NatWest Int Sols logo 0.94% Fixed 27 months 3.2% APRC 60% £995 £561.24 per month get quotes Call us0117 403 4474 Broker Only Deal
Initial rate: 0.94%
Rate type: Fixed 27 months
Monthly cost: £561.24 per month
Max LTV: 60%
Product fee: £995
Overall cost for comparison: 3.2% APRC
Royal Bank of Scotland logo 0.94% Fixed 27 months 3.2% APRC 60% £995 £561.24 per month get quotes Call direct0800 068 7706
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Representative Example:

A repayment mortgage of £120,000 payable over 28 years and 1 month initially on a fixed rate for 2 years at 1.99% and then on the lender current variable rate of 3.69% (variable) for the remaining 26 years and 1 month would require 24 monthly payments of £465.20 and 312 monthly payments of £565.39 and one final payment of £565.19.

 

The total amount payable would be £189,357.67 made up of the loan amount plus interest (£68,161.67), booking fee (£999), completion fee (£30) and valuation fee (£197).

 

In this example the overall cost for comparison is 3.7% APRC representative.

 

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT

How to Finance Property Development

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

Finding property development finance

Finding the right way to fund property developments is one of the main challenges for anyone looking to build, convert or renovate property, whether for private use or as a commercial venture. Failing to get the right financing in place is one of the major stumbling blocks which can seriously derail development projects.

Many developers use a form of short term finance called a bridging loan to bankroll their property projects. This type of loan can normally be accessed quickly, with the first funds often being released to the borrower as quickly as within a few days.

This makes bridging finance the ideal choice for property developers who need to move forward fast, especially if buying at auction or if previous funding has fallen through.

How property development finance works

Bridging finance for property development is normally offered over 12-18 months. Longer loan terms may be considered by some lenders, depending on the circumstances which includes the level of experience of the developer.

Funds will normally be released in instalments as the project progresses. The points at which each instalment will be handed over will be agreed in advance to coincide with significant milestones in the build, such as when the site it purchased, when the building is weatherproof and when the first fix plumbing and electrics are completed.

How to get finance for property developments

When applying for finance for a property development, most lenders will want to see the following:

  • Your income, expenditures, assets and liabilities
  • Bank statements
  • A project valuation from a professional of their choosing
  • A detailed project cost breakdown
  • Development timeline
  • Planning permission documents
  • Building regulations consent
  • Your National House Building Council (NHBC) insurance details or an equivalent
  • A plan for repaying the loan e.g. by taking out a mortgage or by selling the property or properties

The cost of finance for property developments

Various elements of your development loan deal will affect exactly how much it ends up costing you. These include how much you borrow, how long the loan term is and what percentage of the Gross Development Value (GDV) you borrow. GDV is how much the project will be worth once completed.

The three main costs you will pay are the arrangement fee, monthly repayments and an exit fee (although not all lenders charge an exit fee). These must all be carefully considered when working out how much the loan will cost as a loan with no exit fee can sometimes be much cheaper even if it has a higher interest rate.

Compare finance for property development

Getting the best possible deal on your property finance can make a big difference to the viability of the project, whether as a commercial investment or a private development. The less you end up paying for your development finance, the more you have left to put into the project or to take out as profit when the development is sold.

Fair Mortgages’ team of specialist development finance brokers can make it fast and straightforward to access the money you need to move forward with your development. We work with all the leading lenders, including many not available direct to consumers, so can offer the best possible choice on development loans.

To find out more, call Fair Mortgages today on 0117 313 6058 or use our contact form for a quick response. 

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Property Development Finance