What Finance Options Are Available to Me?
There are many options to choose from when looking for finance for your development project. What you choose may be dependant on the size of your project, the amount of money you need, the timescale of your project and other circumstances.
Financing your project doesn’t have to be complicated – property development is an ever-growing industry meaning more and more lenders are offering flexible solutions to your funding requirements. This makes it easier than ever to get your project started.
Here is a list of the three top ways to finance your development project:
- Bridging Loans – A bridging loan is a short term loan which can usually be arranged quickly in order to provide funds to start a project until a longer term loan is in place or perhaps to top up the finances of a project that is already underway. It’s a great way to get fast access to funds and It may be that you get a bridging loan and then secure a longer term loan. There are companies that specialise in providing finance for development projects, including bridging loans, which you can read more about here.
- Buy-to-let Mortage – This a mortgage specifically for a property with the intention of letting it once completed. This is great for individual properties but can be scaled up for larger projects. All major banks will offer a buy-to-let mortgage, for expert advice book an appointment with a financial advisor. There is also plenty of free advice online, have a look here to read more about buy-to-let mortgages.
- Commercial Mortgage – This is a mortgage specifically for the purchase of a non-residential space for example a warehouse or office block. This can be for new builds and renovations. It is possible to get 100% mortgages meaning you won’t need a deposit but of course this will depend on your project and personal circumstances.A commercial property agent would be a great place to start when considering a commercial mortgage.