Property development finance broker UK
A good property development finance broker can be a valuable addition to your team.
From saving you time to saving you money, they can help your project be more successful and reduce your stress in trying to find property development finance.
Table of Contents
Do I need to use a property development finance broker?
The short answer is no, you don’t need to use a property development finance broker in the UK to get development finance.
You can, if you know the market, go direct to most lenders and see what they can do for you.
Of course, this assumes you know the property development finance market and have the right contacts to start with.
It can also be very time consuming as every lender will ask questions and want to talk to you about the detail of your property development project.
You could get the property development finance arranged but can you be sure you have the best possible option for your project?
There are various different factors to think about when determining the best development finance for your project.
There is the cost, of course, but also ease of dealing with the lender, how quick they are, their experience etc. The list goes on.
Rather than put yourself through all that you could use an experienced property development finance broker, like Tim at Build Capital.
I specialise in property development finance and short term bridging finance and have done for over 17 years.
I’ve been a business development manager and underwriter during that time so I have experience from both sides of the development finance fence. From the client and lender side.
What are the benefits of using a property development finance broker UK?
Using a property development finance broker has several benefits you can take advantage of.
Speed to completion
Time is money and I know most developers want to get on to their next project as quickly as possible.
How can I save you time?
With a large panel of lenders and expert knowledge of the lending market I know where to go with your property development proposal.
Some lenders, for example, will only look at projects where the developer needs £2m or more.
Others will only want to deal with smaller projects, lending a couple of hundred thousand or so.
Others won’t lend if you’re looking for first time property development finance so if that’s you there’s no point talking to them.
If you go on the internet and sit at your desk calling all the lenders you can find, or look through their websites, you will end up spending a lot of time.
A lot of that might ultimately be wasted as you’re contacting companies who won’t deal with your project, for whatever reason.
Having worked in this sector for a long time, I know who will fund your project and can get your proposal to them right away.
Lenders will also expect a broker to be shopping around on your behalf so they will, generally, offer as good a service as they can to try and win your business.
Access to a large number of development finance lenders
Trying to find right lender for your project may be harder than you think.
A broker like, Build Capital, has a lender panel that covers small independent lenders to large banks.
Not all are accessible by individual borrowers, some require you to be a professional broker or intermediary and won’t accept you directly.
Other lenders, due to the nature of Google and other search engines are not easy to find, some don’t have websites so if you don’t know them you won’t find them.
With a panel of nearly 100 lenders there isn’t a lot I can’t fund for you. From small projects where you might want a small amount to multi million projects U’ve got options. I can even get you funding for the tools and equipment you need to do the job.
Many development finance lenders are intermediary-only, meaning they are not available directly to the public.
To access the full range of potential lenders, you will need to use a professional development finance broker.
Find the best property development finance for your circumstances
Having more outlets gives me more chance of finding you a great property development finance option than you on your own.
Unlike a standard loan, the rate is not the be all and end all for property development finance, though most clients still focus on it.
Lenders know this and so offer great headline rates to make a property development loan seem to be cheaper than it might be.
You need to be aware of the total cost of a loan, taking into account all the costs that might not be immediately obvious.
I can help you avoid heavy fees and other ways lenders can increase the cost of a loan.
Sometimes lenders have products that aren;t well advertised, which can compete with higher profile lenders but be easier to apply for.
Using a broker gives you the best chance of getting to those products.
The best property development finance loan for your project might not be the cheapest. If you want a fast development loan or one that is flexible to your needs might be more important to you than cost.
We can have a conversation, find out what you need and I can get to work putting you to the right source of funding.
One less thing to worry about
You don’t need me to tell you developing property is time consuming and difficult.
With so much to look after, finance is one thing you can let someone else worry about for you.
Property development finance can be complex and details can be missed if it’s not given full attention.
Trying to arrange it yourself can lead to you missing important details that could cost you more in the long run than any fees associated with using a professional property development finance broker.
With a large panel, plenty of options and expert market knowledge, why wouldn’t you use a property development finance broker in the UK?
What goes into an application by a UK property development finance broker?
An application for development finance needs to have several key components for it to be successful or even just to get a quote you can rely on.
Without certain information, development lenders can’t make a proper decision which is no use to them and more importantly for you, either.
I will put together a proposal covering all the fundamental points to make sure any decision in principle I get for you can be relied on.
The vital information required is made up of the site, you as an applicant, the people involved in the works and the numbers.
Site or Property being developed:
Like you, when choosing a project, lenders will consider all aspects of the site or property you want to develop.
This includes the purchase price and location, along with the planning permission.
Buying at the wrong price or with planning you can’t implement can be a make or break for any project.
The demand for the end product is also a big part of the underwriting decision. If there is no market for what you are proposing to build lenders will see them being at risk of losing capital if you can’t repay them.
The complexity, or size, or a project can determine the level of experience a lender will look for in a client.
If you are looking to do your first project but it’s a refurbishment lenders will recognise it will be relatively low risk.
If, however, you are looking to take on a project requiring millions of pounds a development finance lender will want someone with a proven track record in charge.
Your professional team
For any project to be successful requires the people managing the project to be competent, organised and able to react to issues when they arise.
No matter the size of the project the lender will want the lead person to have experience in doing a comparable project before. This could be for yourself as a developer, for clients or as a contractor of a larger company.
If you are taking on a project outside your previous experience level you can get around this, with some development lenders, by having a main contractor run the project for you.
Development lenders will vet your contractor to make sure they have the right experience and financial strength and stability to get through the project for you.
No matter the project, or people behind it, the numbers have to work.
Lenders will take into account various figures. These include the purchase price, build cost and end value.
Lenders are also mindful of the amount of capital being put into a project by the client.
The proposal I put together gives the lender all this information in an easy to read format with all the information immediately available.
When my lenders get an enquiry from me they know it will have the information they need to make an informed decision and give you a reliable quote.
Start working with a property development finance broker
To start the process you can give me a call on 01492 233 808, or 07930 653 209 to have a no obligation conversation about your project.
I can give you a good idea of what’s available after our first conversation but will follow up with an email requesting all the information I need.
Once you’ve sent me enough detail to go to lenders I will discuss you and your project with them and come back to you with the various quotes.
A big advantage of working with a property development finance broker uk is I can highlight all the costs so you are entering into a full application fully aware of the cost.
Get your free, no obligation quote today
QUICK and EASY enquiry process
FREE, no obligation quote just for you and your project
You’re in good hands with me, a trusted broker
If you’d rather talk now, call me on 01492 233 808.