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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: 0.94%
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: 0.95%
Rate type: Fixed 26 months
Monthly cost: £561.92 per month
Max LTV: 60%
Product fee: £1,499
Overall cost for comparison: 3.9% APRC
Platform logo 0.95% Fixed 26 months 3.9% APRC 60% £1,499 £561.92 per month get quotes Call us0117 403 4474
Initial rate: 0.98%
Rate type: Fixed 26 months
Monthly cost: £563.95 per month
Max LTV: 60%
Product fee: £1,999
Overall cost for comparison: 3.7% APRC
Cumberland BS logo 0.98% Fixed 26 months 3.7% APRC 60% £1,999 £563.95 per month get quotes Call us0117 403 4474
Initial rate: 0.98%
Rate type: Fixed 26 months
Monthly cost: £563.95 per month
Max LTV: 60%
Product fee: £1,999
Overall cost for comparison: 3.7% APRC
Cumberland BS logo 0.98% Fixed 26 months 3.7% APRC 60% £1,999 £563.95 per month get quotes Call us0117 403 4474
Initial rate: 0.99%
Rate type: Fixed 24 months
Monthly cost: £564.63 per month
Max LTV: 60%
Product fee: £995
Overall cost for comparison: 3.9% APRC
Progressive BS logo 0.99% Fixed 24 months 3.9% APRC 60% £995 £564.63 per month get quotes Call us0117 403 4474 Broker Only Deal
Initial rate: 1.00%
Rate type: Fixed 27 months
Monthly cost: £565.31 per month
Max LTV: 70%
Product fee: £999
Overall cost for comparison: 3.0% APRC
Santander logo 1.00% Fixed 27 months 3.0% APRC 70% £999 £565.31 per month get quotes Call us0117 403 4474
Initial rate: 1.00%
Rate type: Fixed 27 months
Monthly cost: £565.31 per month
Max LTV: 70%
Product fee: £999
Overall cost for comparison: 3.0% APRC
Santander logo 1.00% Fixed 27 months 3.0% APRC 70% £999 £565.31 per month get quotes Call us0117 403 4474 Broker Only Deal
Initial rate: 1.02%
Rate type: Fixed 26 months
Monthly cost: £566.67 per month
Max LTV: 60%
Product fee: £995
Overall cost for comparison: 3.9% APRC
Skipton BS logo 1.02% Fixed 26 months 3.9% APRC 60% £995 £566.67 per month get quotes Call us0117 403 4474 Broker Only Deal
Initial rate: 1.05%
Rate type: Fixed 27 months
Monthly cost: £568.71 per month
Max LTV: 65%
Product fee: £999
Overall cost for comparison: 4.3% APRC
Leeds BS logo 1.05% Fixed 27 months 4.3% APRC 65% £999 £568.71 per month get quotes Call us0117 403 4474 Broker Only Deal
Initial rate: 1.05%
Rate type: Fixed 26 months
Monthly cost: £568.71 per month
Max LTV: 60%
Product fee: £999
Overall cost for comparison: 3.9% APRC
Platform logo 1.05% Fixed 26 months 3.9% APRC 60% £999 £568.71 per month get quotes Call us0117 403 4474
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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

New Build Developer Loans

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

What are new build developer loans?

When planning a new build it is important to have your funding in place as soon as possible to ensure a smooth program of works. Many new build developers use short term finance in the form of a bridging loan to help them move forward quickly with their projects.

Bridging finance for new build developments is normally offered over 12-18 months, although some lenders may consider longer loan terms depending on the circumstances. These funds will usually be released in stages as the build progresses, with each instalment being delivered when the next milestone is reached e.g. completing the foundations or getting wind and water tight.

New build developer loans can be accessed by both large commercial developers and private individuals looking to fund a self-build home. Depending on the goals of the project, the bridging loan will normally be repaid either by refinancing or selling the finished development when the build is complete.

Applying for finance for new build developments

To apply for a new build developer loan, you will normally need the following:

  • Documentation of your income, expenditures, assets and liabilities
  • Recent bank statements
  • A valuation of your project from a lender-approved professional
  • Detailed breakdown of project costs
  • Development timeline
  • All relevant planning permission documents
  • Building regulations consent
  • Your National House Building Council (NHBC) insurance details or an equivalent
  • An exit strategy i.e. how you will repay the loan

The cost of new build developer loans

Exactly how much your development finance will cost will depend on a variety of factors, including how much you borrow, how long for and what percentage of the Gross Development Value (GDV) of the project you need to borrow. GDV is how much the development is likely to be worth once complete and the lower your loan to GDV ratio, the better rates you will normally get on your loan.

To calculate how much your loan will cost, you will normally use three main figures:

Arrangement fees – A set-up fee for taking out the loan, normally equal to a percentage of the total loan value and payable at the start of the loan term.

Monthly repayments – Usually just the interest on the loan as the capital is normally repaid in full when the loan term ends with this kind of short term development finance.

Exit fees – Due at the end of the loan term when you repay the capital. Generally calculated as a percentage of the total loan value. Not all lenders charge an exit fee and this can make a big difference to the overall cost of the loan.

Compare new build developer loans

There are many different lenders offering new build development finance, giving borrowers a great deal of choice. With so many choices, however, it can be tough to find which lender is offering the best deal for your borrowing needs.

Fair Mortgages’ specialist development loan brokers can make the process of finding development finance much easier. We have access to all the top lenders, including many not available on the high street. This means we can quickly find you the very best deals available without a lot of legwork on your part, meaning you get a fair deal, fast.

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