Are you looking for Development finance?
Development finance is a type of mortgage that provides loans to developers who want to build new houses and other buildings.
IMS can assist people, property owners, small builders, first-time developers, seasoned developers, and purchasers at auction who wish to finance initiatives including new builds, renovations, developing mixed-use structures, remodelings, and barn conversions.
Whether you have just been given planning permission and are permitted to proceed with a new building project, or if you have already begun and are approaching the finish line.
Considerations before applying for development finance
When applying for development finance the main consideration on the lender’s behalf is the security being offered, if your project is profitable and if it can be completed in a timely and professional manner.
The lender is not concerned about personal affordability like you would experience with traditional finance.
If you are approved for development finance, you will likely be offered a loan-to-value ratio (LTV) of up to 70 or 80%. This means that if your project is valued at £1 million, you could potentially borrow up to £800,000. The actual amount that you can borrow will depend on the lender’s assessment of your project’s risk.
Benefits of Development financing
One of the benefits of getting a development finance mortgage is that you will not have to make monthly repayments during the construction period. This can free up cash flow so that you can reinvest it into your project. Interest will be charged on the outstanding loan balance, however, and you will need to pay this back when the construction period is over.
Another benefit of development finance is that it can be used to finance multiple properties. This can be useful if you are looking to buy a property at auction or if you are planning on redeveloping a site with multiple units.
If you are thinking of applying for development finance, it is important to speak to an experienced mortgage broker. They will be able to assess your circumstances and provide you with tailored advice.
How IMS can help you with your Development Finance Application
At IMS we have a team of experts who have extensive experience in arranging development finance and are also accredited by NACFB. We will work with you to understand your needs and put together a bespoke package that meets your requirements. Contact us today to get started.
Call us today on 01869 248339 email us info@imsinternet.co.uk to speak to one of our development finance specialists
The IMS Property Group is an official authorised member of the National Association of Commercial Finance Brokers (NACFB), a trade body for over 1600 commercial finance brokers and lenders across the UK.
As an NACFB member, we are required to have Consumer Credit Permission, Professional Indemnity Insurance, a Data Protection Licence, and a strong track record with nationally recognised lenders.
