Property Finance
Property finance to help you invest in or develop property – meaning your business can keep growing.
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What is property finance?
Property finance loans are a type of secured, short-term loan that can cover the cost of converting an existing property or developing your business. It can be secured against the newly purchased property, or existing business property or land assets.
This type of finance is helpful for businesses with growth potential that don’t currently have the capital available to spend.
Types of property finance
We offer two types of property finance – bridging loans and development loans.
Bridging finance
A short-term secured loan for property developers and investors, bridging finance allows you to move quickly on a property deal – for example, when you’re purchasing a property at auction and there’s a tight turnaround.
Loan terms are generally up to 12 months and providers want to see how the loan will be repaid in full at the end of the term, known as an exit. This is often achieved by moving the loan onto a longer-term commercial mortgage or selling the property after renovation.
Interest rates are higher than longer term mortgages due to the short-term nature of the loan and the speed they can be completed. Repayments are by monthly instalments, but some lenders may allow interest payments to be rolled up and paid at the end of the term.
Development finance
Development finance is similar to bridging finance, but it comes in two parts – a loan for the original purchase and another for the building or renovation costs.
Property developers often use this option when they find land with planning permission and will use this type of finance to purchase the land and build the property. Most lenders will provide the finance in stages, with the final part paid out as the development hits certain milestones. Loan terms are usually up to 24 months and lenders will lend a percentage of the property’s initial purchase price and the full cost of development.
FAQs
The most frequently asked questions about property finance.
Each lender will offer different interest rates, often based on the length of the loan period and the cost of the property or development project.
Our initial application process takes just two minutes, and we’ll provide you with a range of options from different lenders. Lenders can give us an answer within 24 hours and sometimes can come back to us in two.
However the process of moving the funds can take some time, depending on the specifics of the property sale or development. Accessing a development loan is also different, as the financial product comes in two parts.
Getting a quote from us won’t impact your credit score because we only run soft credit checks. You’ll only need a full credit report once you proceed with a lender’s full application. We’ll reduce the number of credit searches you need by carefully determining your eligibility for each loan option.
And if you meet your repayments, the loan will positively impact your credit score, but could reduce it if you miss any or default. However the loan is secured against the new property or other business assets, these will be seized if you default on the loan.