Minimum annual Interest rate
(typical rate 1% pcm)
LTV overall against GDV
24 months Max term available
New or experienced house builders seeking build funds ? We can get funding for you for upto 100% of all the build costs and materials.
From single property builds to funding small to medium sizedUK house building development sites from 1 house through to building sites for 30+ houses. We can help structure the finance for you to minimise costs and boost your profits.
We can fund 100% of build costs on:
Free EASY enquiry
Lending In More detail
We will provide up to 60% of any land purchase value and 100% OF THE DEVELOPMENT COSTS (INCLUDING FEES) we can even roll up the interest provided that the total Facility does not exceed 70% of the GDV estimated end value.
Higher L.T.V. if further security is available.
You are the uk house builder – we are the finance people – From enquiry to completion, we’re here to help you through the borrowing process. Over the years, we’ve refined and perfected our application process to provide you with a seamless and intuitive experience. ONE simple enquiry and we will check your project and offer you a lender that WILL offer to fund 100% of the build costs.
Here to help – with a hands-on approach to our property finance.
We like to meet clients face-to-face, and to visit the development site to see its potential for ourselves. We study the plans, and research the local market.
UK House builder loans are short-term funding loans, used to develop either an existing building, i.e. refurbishment, conversion, or a new build. The property Development Loans are usually taken over a period of between 6-18 months. This really depends on the type of Development; with a light refurbishment it could be as little as 3 months, and with a larger scheme up to 18 months
New Builder or just moving up and setting out on your own ? or previous Impaired credit history ? perhaps even a bankruptcy in the past ? don’t worry we know the building trade isn’t always smooth sailing. We can arrange funding for all residential and commercial development projects even if you are a first time developer. Regardless of your experience level, credit history or development project, we can help.
We can help – if you have current or recent ccjs we can still look at getting you development finance. We can even get development finance for discharged bankrupts, just make sure you tell us all the bad credit information so we can source the development finance lender that will accept your credit history.
Even if you are a Discharged bankrupt – you can get development finance, It needs to have been discharged at least 1 year and we just have to declare everything upfront, and lets be honest you wont get 0.64% rates at the start, your rate swill be 1% + pcm for the first few projects until you prove your track record.
First Time UK house builders With Little or No Experience
New Property Developers with little or no previous experience, we can still provide finance to get you up and running whilst most high street lenders will not entertain developers with no experience we have many other lenders who will look at the bigger picture, furthermore we are experts in dealing and packaging your loan application to give you the very best chance of getting finance for your first project, we work with all types of developer and have had many years of experience providing Development finance
Experienced Property Developer, Development Loans.
So what is an experienced Developer? Generally, you will have completed at least 4 to 5 projects and sold on for a profit. A builder or building contractor would not be considered a Property Developer, neither would someone who developed and kept the finished properties in a portfolio. The key is the selling. Also, there are many skill sets that a Developer has that a Builder would not possess. As always, experience and dealing with the many pitfalls that come with Property development, selling on, keeping a tight control over costs and not overdeveloping (something some builders do proudly). It is great having the best spec and design but will it add profit?
Development Company
If you are looking for some awesome, knowledgeable people to work with, these are the guys I highly recommend. Their friendliness and result-driven approach are what I love about them.
Uk Builder
Down to earth, great advice and support. Really helped me get the project off the ground.
Bridging finance for development is used to build a new building or convert an existing building. This can be residential houses, shops, offices or industrial buildings. It can be for investment purposes or owner occupied. You can be an experienced developer / builder or a first-time developer: A builder by profession who has purchased land and wants a loan to build houses that he will build and sell on. The developer may or may not have built from scratch before.
The maximum you can borrow to purchase the site is anywhere between 50-60% of the purchase price depending on the project. The site would need to have full planning in place or can be agreed subject to planning.
Key Features of 100% house builder Loans
One can also borrow up to a 100% of the build cost provided that it is within 60% – 70% of Gross Development value (GDV) depending on the lender and experience (set on a case by case basis). Maximum term you can borrow for development finance is between 12- 36 months. Exit is usually sale of properties or refinancing.
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The biggest benefit of having the finance in place is that you know you can get on with what you do best –
building the property. finance is the way in which it allows borrowers to access much larger sums of money. In fact, it is the most extensive borrowing facility currently available on the UK market. Initially, funds are provided to get the project underway. As the project continues, grows and edges closer to reaching its goals, more money is released for the developer along the way. The total sum of money lent can be up to 100% of the total cost of construction, with no specific upper-limits as to how much can be borrowed.
Additional advantages to development finance include:
What Costs to Expect on a House finance Loan?
This is dependent on the experience of the property developer. Rates can be as low as 4% pa and they can go as high as 20% pa for say an ex-bankrupt, so the range can be anywhere in between. Also, most lenders charge an arrangement fee of between 1-2% of the loan amount. Some Lenders also charge an exit fee, although not all. This is usually a percentage of the GDV (gross development value), and around 1% to 1.25% depending on the Development Loan period, i.e. 1% of gross development value for a 12-month loan 1.25 % of GDV for an 18-month loan.
What Are the Main Development Finance Costs?
Fees, charges and general borrowing costs vary significantly from one lender to the next. The following will apply in most instances as the primary costs of development finance:
Facility fee – More commonly referred to as an arrangement fee, the facility fee is calculated as a percentage of the total cost of the loan (gross or net).
Interest rate – Interest on a development finance loan can be charged on an annual or monthly basis. Annual interest rates of 7% are not uncommon, as are monthly interest rates of 1%. Longer-term facilities attach lower rates of interest, though cost more than those that are repaid quicker.
Exit fee – Sometimes called a completion fee, the exit fee is usually calculated as a percentage of the total cost of the loan (gross or net). Some lenders charge a percentage of the total value of the completed project – not the sum borrowed.
Broker fee – Most brokers charge typically 1% to 1.75% of the total value of the loan. If a fee is charged, you will be informed of this in our initial quotation.
These are just some of the primary costs to take into account when considering development finance. Working with an independent broker will help ensure you gain access to the best possible deal to suit both your requirements and your budget.
Other House Finance Costs to Take Into Account
Additional development finance costs to take into account (which may or may not be applicable) include the following:
Valuation fees – It will usually be necessary for an initial valuation to be carried out by a neutral third party, in order to assess the open market value of the security. This will also typically include a projected valuation of the completed project.
Application fees – UK Property Finance does not charge application fees. Some lenders and brokers impose fees simply for submitting an initial application, or seeking advice on development finance.
Legal fees – If it becomes necessary to hire a solicitor or seek qualified legal advice, the applicant will be responsible for meeting all such costs accordingly.
Administration fees – This is a somewhat vague term, which can apply to almost any additional cost imposed by the lender. Some brokers also charge administration fees – UK Property Finance does not.
Monitoring fees – Development finance lenders will naturally need to monitor the progress of the project, in order to ensure it is reaching its predetermined goals. This is to make sure their investment is sound, and the funds allocated are being used as agreed. All monitoring fees are picked up by the borrower.
Draw down fees – Each time a new instalment of funds is transferred to the borrower, an additional fee known as a draw down fee may apply. This could be a set fee, or charged in accordance with the size of the instalment.
Telegraphic Transfer fee (TT Fee) – This is a cost imposed by the banks handling the money transfers, which in the case of development finance can be comparatively large. Nevertheless, TT fees are generally quite small and charged at a fixed rate.
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