How to Get into Property Development (The Ultimate Guide)
19th June 2023
Millions of property investors in the UK are making consistent returns and property development makes up a considerable proportion of
We search a wide range of development mortgage deals from across the market, including specialist lenders and exclusive deals.
Development mortgages are also known as ‘property development finance’ or ‘property development funding’. They allow individuals or companies to renovate existing properties or build new developments from the ground up.
Development mortgages are short-term loans, usually lasting between six months to two years, and they can be used to fund the purchase of land and the development of private residential or commercial property.
There are many different types of development mortgages, including ground-up development finance, short-term bridging finance, heavy and light refurbishment finance, development refinancing, and more.
Which type of development funding is most suitable for your needs depends on your project. Our advisors will be able to assess your project and recommend the appropriate development mortgage and lender to suit your situation.
Development mortgage rates are usually decided on a case-by-case basis. Lenders will take into account the loan size, the projected value of the completed project, the applicant’s experience and credit history, and the location of the project.
The interest on a development mortgage is typically calculated monthly. However, the interest may roll up into the loan and be paid back at the end of the term – often when you come to sell or monetise the property.
Our specialist team of advisors understand the criteria of each lender, so we can help you structure and present your proposal in the most appropriate way. We also search through a wide variety of lenders to assess all your options and find a rate you’re happy with.
These mortgages can enable you to raise development funding for your projects when other standard mortgage products don’t apply. Whether you’re looking to build a new property or renovate an existing one, a development mortgage could allow you to finance projects of all shapes and sizes and hopefully make a decent profit.
Development finance is designed to be flexible. You’ll typically only pay interest on the funds you have drawn down, not on the full amount available to you, and if your project ends up under budget, you won’t have to borrow the full amount. Many lenders are open to inexperienced developers providing the proposal meets their criteria. And some lenders may accept other assets as security against the loan and allow early repayments without charge.
Development mortgages for land and the development itself are usually offered at a maximum of 60-75% loan-to-value. Therefore, you’ll typically need at least a 25-40% deposit. However, some specialist lenders may be willing to provide up to 100% of the development portion of the costs providing your proposal meets their criteria.
Find out how much you can borrow and what development mortgage rates are available to you with one simple chat.
Do you need finance to develop a commercial or residential property? Our friendly development mortgage advisors will search the market to find the most suitable deal for your situation.
When you’re ready, we’ll apply on your behalf and liaise with all parties to ensure your journey is a success.
We can also arrange a Mortgage in Principle so you can start making strong offers on properties you love whilst your main application is being processed.
Simply talk to an advisor to get going!
We’re not affiliated with any particular lender, so our advice is impartial.
Only approaching high street lenders can limit your options. We search a wide range of deals from across the market, including specialist lenders and exclusive deals that are only available through development mortgage brokers like us.
We don’t run a credit check on you, so your credit score is not at risk.
We don’t need to run a credit check when searching available mortgage deals for you. We also only apply for deals you’re likely to be accepted for – this is important, because being rejected by a mortgage lender can damage your credit score.
To get the right development mortgage, you need to get the right advice.
With our years of experience, our specialist development mortgage brokers will help ensure you make the right decisions when securing finance for your development project. We’ll discuss your situation and needs, and then guide you every step of the way.
We were voted the ‘Best Advisor Firm in the South’ in 2019, 2020, and 2021, and ‘Large Firm of the Year’ for the last three years by one of the UK’s most trusted mortgage and protection organisations.
We’ve also been helping people like you for over 30 years… so we know what we’re doing!
We’ve won multiple ‘Best Advisor Firm’ awards from HLPartnership, one of the UK’s most respected mortgage broker bodies.
We consistently receive great reviews from our customers, and we’re rated 5* on
Trustpilot & Google Reviews!
We’ve been helping people like you for over 30 years. During this time, we’ve grown into one of the most trusted mortgage brokers in the South of England.
We make the mortgage process quick and easy. You’ll just need to chat to us once and then we’ll do all the hard work for you!
We’re a friendly team of real people in a real office, and we can help you in person, on the phone or via video call.
We’re not affiliated with any particular lender, which means we can recommend products based purely on your situation and needs.
We search deals from across the market to find the right mortgage for you, including specialist and exclusive deals that are only available through brokers like us.
We don’t run a credit check and we only apply for deals you’re likely to be accepted for – to protect your credit score and make your mortgage journey smoother.
Check out some of our helpful guides!
Millions of property investors in the UK are making consistent returns and property development makes up a considerable proportion of
Whether you’re looking to build a new property from scratch or renovate an existing property, you may need to obtain
Our friendly advisors are ready to help you on the phone, via video call, or in person. Simply book a chat at a time that suits you!
We don’t just find you the right mortgage, we make it easy for you as well.
Spend seconds filling out a few questions online or give us a call to book your FREE consultation.
We'll find you the right deal, handle your application, and guide you through the whole process.
This one’s self-explanatory, just sit back and enjoy the fruits of your new mortgage!
