Finance for development
This is a specialist area of financing but Mortgage Style have lots of experience in finding the most suitable options.
Every lender is a little different but in general terms you would need to put down about 30% as a deposit on the plot/property purchase but you can get 100% of the development costs.
If you have another property to use as security then it is possible to get 100% funding.
Lenders usually require the applicant to have experience but sometimes this is not necessary.
There can be hidden costs so it is really important to get an independent adviser to find the best deal, for example some lenders have exit fees and sometimes these can be based on the GDV (gross development value) otherwise known as the end value rather than the amount borrowed.
Refurbishment (refurb) mortgage/ can I get a mortgage to refurbish a property?
Some lenders can offer finance for light refurbishment deals where less structural work is being carried out, it means that the deal is can often be cheaper than standard development finance and not as many site visits are required, even when these are required it often doesn’t have to be done by a qualified quantity surveyor meaning that fees are also cheaper.
Each case is assessed on its own merits but Mortgage Style can advise on the most competitive option for the individual deal.
Best development mortgage rates?
The rates and costs vary on development finance between lenders, rates can be as low as 4.5% but are usually dictated by the amount being borrowed, the ratio of funding against future value and the clients experience.
Mortgage Style will research the most suitable and competitive option based on your personal circumstances and scenario, they will also highlight all fees and risk areas as some lenders can charge additional fees that the client may not be aware of.
Cheapest development mortgage rates?
Rates and fees can vary dramatically between lenders. Some of the big banks can offer competitive rates but can be quite restrictive on criteria and lending amounts compared to some of the specialist lenders or challenger banks.
Mortgage Style can search the market for the best options to suit your personal case
Rates can be as low as 4.5% but you need to be aware of all potential fees including exit fees which some lenders charge.