Contrary to popular belief, the average developer doesn’t have an endless stockpile of cash just waiting to be put to use. Instead, the vast majority of property developers require financial assistance for the projects they undertake.

So it’s good news that there are so many options available to explore: Including the following 10 examples:

Conventional mortgages

First up, standard high street mortgages have the potential to be useful — assuming relatively extensive waiting periods are acceptable. Mortgages allowing large sums to be borrowed with no initial collateral be necessary.

Second charge mortgages

The difference with a second charge mortgage being that the funds are typically used to top-up existing loans. A second charge mortgage can be secured against the value of your property, even if you aren’t living in it at the time.

Commercial mortgages

As the name suggests, commercial mortgage products are designed specifically for commercial property purchases and development works in general. Similar to conventional mortgages, though exclusive to commercial borrowers and often more flexible.

Secured loans

These can be great for development finance, assuming you have the required collateral to put up. Regardless of the value of your property or assets, it is usually easy to borrow the equivalent value in the form of a loan for your project.

Buy-to-let mortgages

Another very specific type of mortgage, available exclusively for those purchasing properties to let out. Useful where available, though becoming increasingly difficult to successfully obtain.

Residential bridging loans

Residential bridging loans are typically offered in accordance with the collateral/security the borrower can provide. A fantastic and comparatively affordable option when development finance is needed quickly and can be paid back within a matter of months.

Commercial bridging loans

Pretty much the exact same concept as a residential bridging loan – large sums of money are made available for commercial purposes in a matter of days, in the form of a secured loan to repay back in full within a matter of months.

Bridge-to-let

A bridge-to-let loan is typically calculated and granted on the proviso that the borrower is able to achieve 100% rental coverage from the property itself. The exit strategy being usually to refinance using a conventional buy-to-let mortgage.

Private investment

Depending on the project in question, the developer may be able to secure the financial assistance required from private investors. Just as long as the merit and value of the project can be sufficiently verified, there are always plenty of businesses and individuals alike on the lookout for valuable property investment opportunities.

Crowdfunding

Last but not least, while it isn’t considered a ‘conventional’ approach to accessing financial assistance, crowdfunding nonetheless has huge potential. It’s simply a case of giving anyone wishing to do so the opportunity to invest in your project at a comparatively low level, in exchange for some kind of stake in its successful completion/fruition. It isn’t always easy to drum up this kind of support, but can be remarkably flexible and versatile if and when you can.

For more information on any aspect of development finance, get in touch with UK Property Finance today!

For most homeowners, there’s really no easier or more affordable way of extending a property than with a professional loft conversion. Most homes have a potentially huge amount of space that could be put too much better use, without the need for major remodelling or extension works. That said, a high-quality loft conversion doesn’t come cheap, hence the importance of carefully considering all available methods of financing the project.

The question being – which represents the best choice for you?

Get it right and a quality loft conversion can more than pay for itself. By increasing the overall value of your property by as much as 25%, a loft conversion can be one of the most outstanding long-term investments any homeowner can make. When it comes to financing these kinds of alterations, the preferred options for UK homeowners are as follows:

Re-mortgage
One readily available option for larger loans is re-mortgaging. Taken either as an extension on your current mortgage or a new mortgage if yours is already paid up, such loans can technically be offered with no upper limit. On the downside, any kind of mortgage deal can be time-consuming and difficult to organise, while at the same time being secured on your property which is used as security for the loan.

Unsecured personal loan
If the required sum comes in under £25,000, it could be easy and affordable to go with a standard personal loan. Unsecured loans are typically easy to access and carry fair interest rates, with no collateral being required. That said, qualification for personal loans of a relatively high nature can be tricky these days, as major banks and lenders continue tightening their criteria.

Bridging loans
An increasingly popular choice, bridging loans are great for those looking to borrow a moderate sum of money for a short period of time. For example, you could borrow £20,000 with a bridging loan, add £40,000 to the value of your home, sell-up as part of a planned relocation and pay back the loan within weeks or a few months. Simple, uncomplicated and fast access to the funds you need. Bridging loans are great where fast and full repayment is preferable.

Equity release
It’s also worth remembering just how much money there is tied up in the rest of the property as a whole. Equity release can typically be tailored to suit the needs of homeowners across the board, providing the perfect solution when funds are needed quickly. With equity release, there are very few qualification criteria to speak of and minimal complexities. With equity release, it’s all about the collateral.

Secured personal loan
Last but not least, a secured personal loan delivers exactly as it promises. The benefit of a secured loan being that it’s far easier to qualify for this type of financing, as credit history and current financial position etc. are not taken into account. Just as long as you have the required collateral, you can usually get a great deal.

For more information on any of our financial products or services, get in touch with the UK Property Finance customer service team today.

Although most property development projects tend to radically differ from each other in terms of the actual work itself, they all share one key requirement. The primary underlying factor in terms of a developer being able to successfully deliver a project while simultaneously generating a healthy return is the ability to acquire the relevant funds to ensure that the task can be completed in a timely manner without exceeding the budget. Whether you intend to refurbish existing real estate or construct a new residential or commercial building from scratch, appropriately sourced property development finance will typically always serve as the dividing line between prosperity and failure.

In an ideal world, the developer would always have the required funds at their disposal without ever having to look elsewhere for help. However, in reality, this is seldom the case, and this is precisely where an expert property development finance broker can make a colossal difference, particularly in terms of ensuring that a project can be completed cost-effectively while increasing profit margins. If you happen to be a property developer and you are looking to improve your odds of getting a good deal on development finance, then there are a number of steps you can take in order to gain access to the competitive funding solution you ultimately need.

Here are five essential steps that will help you achieve the best property finance deal while ensuring your application is approved without any complications.

1) Whether you are applying for development funds for the first time or you are already highly experienced and well versed in the world of development finance as a borrower, one of the most important things you must do when completing your application is to always remain transparently honest with your lender from the outset. If you are realistic about your plans and can identify your business goals, financial standings, and even your fears or concerns (i.e., whether you may need to borrow more funds at a later date should an unforeseen event occur), the development finance lenders you approach will be more comfortable and inclined to deal with you.

2) Previous experience always plays a vital role when trying to secure development finance for a given project. Even if you are relatively new to the game yourself, the ability to show a lender that the people you will be working with on a project are suitably qualified and capable of completing the task at hand will ultimately improve your chances of accessing the credit you need. This includes architects, interior designers, builders, plasterers, and anyone else involved. In a nutshell, when you show a prospective lender that the people you have on board for a project are qualified, experienced, and reliable, with proven track records and quality references, the confidence they will have in your project will increase exponentially.

3) When it comes to development financing, the decision to lend is also based on numbers, hard facts, and figures. If you can demonstrate the feasibility of the project in an accurately numerical fashion, lending confidence increases further, and your chances of being approved for a property development funding package with a low rate of interest will also be much higher. Basically, you need to show the lender that you have done your homework and that your ambitions to succeed are realistic and achievable.

4) When applying for development funding, always make sure that you are confident in your own ability to see the project reach fruition. If you show any signs that you have outstretched yourself, either as a borrower or a property developer, your lack of self-assurance will be quite off-putting from the lenders’ perspective.

5) Regardless of your level of experience when dealing with or applying for property development funding, it is always useful to talk to a qualified and well-recommended professional who will discuss all the options available to you while taking your unique set of circumstances into consideration.

Additionally, when you apply for development finance online using an FCA-authorised and regulated broker such as UK Property Finance, you will also gain exclusive access to a diverse panel of mainstream lending facilities alongside a unique set of private investors who will be interested in funding any individual project based on its own merits. You should also be aware that many of the development funding options available through a specialist broker may not be available through other channels, even when approaching a specific lender directly.

Contrary to popular belief, being turned down for property development finance is far from uncommon. It’s just that when it happens to you personally, you feel as though you’re the only one in the world facing such troubles.

Regardless of what it is you need the capital for, there are generally four main reasons why applicants are refused assistance by any given service provider, which are as follows:

• Your credit score If your credit score simply isn’t up to par, chances are very little else will matter in the eyes of the lender.
• Your current business position You may have a fantastic credit history, but if the lender doesn’t believe that your business is currently in a suitable position to warrant the loan, you will probably be refused.
• Your Request. Alternatively, it could simply be that you have requested too much money, unacceptable repayment terms, or anything else the lender deems unsuitable.
• Your Choice of Lender or Product Lastly, it could simply be that you have made a poor choice in terms of the lender you have chosen to work with or the actual development finance package you have applied for.

So that’s the basis of the problem outlined, but what about the solution?

The good news is that no matter how many times you have been turned down, there are always alternative avenues to explore. There are certain issues that may stand in your way and make life difficult, but there is never such a thing as reaching a point where there’s nowhere left to turn.

So if you do find yourself in a situation where you have been refused financial assistance, consider the following, and you may be able to gain access to the required funding elsewhere:

1. If your credit score is the problem, it isn’t a problem that is just going to go away on its own. Find out exactly what it is that is blighting your credit record and begin making the necessary changes to put it right.
2. If you have only applied for generic development finance products via everyday lenders, you might want to think about the various intelligent financial solutions available. These are exactly the kinds of instances in which bridging loans, for example, have the potential to represent highly accessible, affordable, and cost-effective solutions.
3. There are always alternative options to explore outside the usual borrowing spectrum. Examples include crowdfunding, peer-to-peer lending, and seeking the involvement of private investors.
4. It’s also worth carefully reconsidering exactly how much you need, what you need it for, and when or how you can guarantee the sum’s full repayment. If it’s possible to get by with considerably less and pay it back quicker, you may find more lenders willing to help.
5. Never overlook the possibility of obtaining a secured business loan, which, assuming you have the required collateral to put up as security, can be much easier to obtain than an unsecured loan.
6. Last but not least, it’s advisable to immediately get in touch with an experienced and reputable independent broker in order to obtain professional guidance and assistance on all aspects of property development finance. Rather than repeatedly trying and failing on your own, why not get the professionals to lend a helping hand?