| GDV | ___ |
| Initial Loan (day 1) | ___ |
| Total Loan Amount | ___ |
| LTGDV | ___ |
| Day 1 (LTV) | ___ |
| Margins at | ___ |
| Build Term (months) | ___ |
| Minimum Term (months) | ___ |
| Assumed arrangement fee @2% | ___ |
| Admin fee | ___ |
| Exit fee | ___ |
| Net Day 1 Advance (after deductions)* | ___ |
Financing is vital to development projects, with a multitude of lenders to choose between. The right lending needs to be competitive, profitable, and structured around your timescales - which is why using an experienced broker is essential.
Whole-of-market brokers are independent and can recommend the lenders best suited to your development project, negotiating power to ensure you get the most favourable deal possible.
Using an experienced broker can make a world of difference to your development finance rates! We negotiate directly with lenders, ensure your application is as strong as possible, and compare products directly to help you make informed choices about the right solutions for your development project.
For more advice and guidance about development finance, contact the mortgage brokers at info@revolutionbrokers.co.uk or give us a call on 0330 304 3040.
The key difference between a residential mortgage and development finance is the duration. A typical residential mortgage runs for around a 25-year term, whereas development finance tends to be for between three months and three years.
When applying, the most significant factor is your exit strategy - i.e. how you will repay the loan at the end of the term.
In development finance, the exit strategy is usually the sale of the development when work is complete or remortgaging to pay back the short-term loan.
The more secure your exit strategy, the better a deal you will be able to negotiate.
Residential development lending isn't quite the same as commercial developments. In many cases, it is wiser to opt for a self-build mortgage.
However, the correct form of lending depends on your circumstances and the development project details, so it is always crucial to consult an expert broker for independent advice.
Every lender has different rates, terms, criteria and products. The Revolution team often works with clients who have been turned down for development finance simply because they have applied to the wrong lender.
Using a non-competitive loan can severely impact the profitability of your development and cost thousands of pounds in additional interest and lending fees.
The Revolution team are experts in development finance and use our experience to leverage outstanding deals tailored to your borrowing requirements.
To ensure you apply to the right provider and get the best deal, you need to understand the lender's eligibility criteria. This knowledge enables you to short-list lenders who are likely to approve your application.
Some of the most common requirements include:
No, it isn't vital - but it is an advantage.
If you have prior experience in development, you can apply to a broader number of lenders. Mainstream lenders can turn down new developers on these criteria, but a broker can identify lenders who are happy to consider applications from first-time developers.
Should you be seeking development finance for your first project, give the Revolution team a call on 0330 304 3040.
It depends on who you apply to. If you fall outside of any of the 'standard' criteria, it can be trickier to get an offer from a high-street lender.
For example, being self-employed or having an adverse credit history means you have a much better chance of approval working with a broker who can negotiate with niche lenders on your behalf.
Indeed they can - the key is to know the lenders and which ones are best suited to your development finance needs.
Revolution works with lenders who can offer development finance in the form of:
It can be easy to feel disheartened if you have been rejected for lending because your circumstances fall outside of the norm. However, by working with a broker who knows and understands the development finance market, you have a great chance of finding the lending you need.
The best lender for you depends on your development plans, how much you wish to borrow, and your circumstances.
For example, if you have a decent deposit and a clear credit history, you might get the best rates with Lender A.
However, a developer with a smaller deposit or credit issues might be turned down, and be far better off applying to Lender B who offers niche lending.
Below we have listed some of the most well known UK development finance lenders and a summary of their lending terms.
Tend to be reasonably flexible with criteria, but terms and rates are difficult to find without using a broker. It is advisable to work with an advisor to avoid making unsuccessful applications that may impact your credit rating.
Offer development lending up to 90% of the total budgeted costs, although this can be lower depending on other criteria.
Require high deposit values, with strict requirements on applications, often needing a 40% down payment before making an offer to lend.
Rates vary significantly across the market and can change quickly. If you have found a great deal but aren't yet ready to proceed, or want to make sure there aren't better rates out there, give the Revolution team a ring, and we will advise whether more competitive terms are available.
It can be time-consuming and challenging to make direct comparisons with different terms, charges, fee structures and repayment rates.
Revolution Brokers complete this task on your behalf, eliminating lenders who we know would reject your application to save time, money and stress.
We work with a broad range of mainstream and niche lenders, with whole-of-market access enabling us to recommend any provider we think is a good fit.
Lenders include:
The best option is to contact an expert who will run through your development plans and recommend the best course of action.
Our consultants will work with you to consider:
If you are interested in reviewing your development finance options or want to compare the best deals on the UK lending market, give the Revolution Finance team a call.
We are available on 0330 304 3040 or via email at info@revolutionbrokers.co.uk.
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The content included in our articles, blogs, web pages and news publications is based on information accurate at the time of writing. Note that policies and criteria can change regularly throughout the UK mortgage lending market, and it remains essential to contact the consultation team to receive up to date guidance. The information included on the Revolution Brokers site is not bespoke to any circumstances or individual application scenarios and therefore is not intended to be used as financial advice. The content we share is designed to be informative and helpful but cannot be relied upon to provide individual advice relevant to your mortgage requirements. All Revolution team members are fully qualified, trained and experienced to provide mortgage advice of an independent nature. We collaborate with lenders and providers who are regulated, authorised and registered with the Financial Conduct Authority (FCA). Should you require specific mortgage borrowing types, some products such as buy to let mortgages may not be FCA regulated. The Revolution team can provide further information about regulated and unregulated lending as required. Please remember that a mortgage is a debt which is secured against your home or property. Your home can be at risk of repossession if you do not keep up with the repayments or encounter any other difficulties in managing your mortgage borrowing responsibly. This also applies to any remortgage or home loan secured against your property, including equity release products.
Revolution Brokers understands that mortgages can be complex and confusing!
Ask us any question you might have, and one of our skilled consultants will come back to you as quickly as possible.
