The right mortgage for you depends on many factors, including your budget, credit score, life stage, deposit size, the type of property you’re buying and
The right mortgage for you depends on many factors, including your budget, credit score, life stage, deposit size, the type of property you’re buying and
Development finance is crucial for funding property projects, from light refurbishments to large multi-unit property developments, by providing targeted financial support at key stages throughout the development.
We pride ourselves on providing a tailored approach to meet your unique needs.
With over 500 five-star reviews, our dedicated team of expert mortgage and insurance brokers ensures you receive top-tier service and advice. As a whole-of-market brokerage, we have access to thousands of products, giving you the best possible options to suit your situation.
Our straightforward, simple process makes securing the right finance deal, hassle-free so you can make informed decisions with confidence.
Development finance is a short-term loan used to fund property construction, conversion, or major refurbishment. It provides lump sums of cash at different stages of a project to cover costs such as land purchase and builder payments. As each stage is completed, additional funds are released for the next phase. Once the project is finished, the loan is typically repaid through the property’s sale or by refinancing into a longer-term mortgage.
Reach out to our expert advisers who will guide you in securing the most appropriate loan for your development project. You will be paired with a dedicated case manager who will oversee the process, ensuring a smooth and efficient experience.
Your adviser will conduct a thorough market search to identify the best financing options available. They will manage your loan application, collect all required information, and present it to the lender to facilitate approval.
Once the project reaches completion, the first drawdown of funds will be released for land purchase or the initiation of construction. Additional funds will be provided as needed for subsequent stages of the development.
Upon completion of the project, repayment of the loan will be required. This is typically done through the sale of the property or by refinancing with a longer-term mortgage, depending on your financial strategy.
Staged fund releases ensure a steady cash flow throughout the construction process, helping to keep the project on track.
Development finance is essential for managing and funding your project effectively.
Repayments can be aligned with your project’s timelines and cash flow, offering better financial management. Terms and eligibility vary, so a development finance specialist can help you find the optimal solution.
Be prepared for additional costs such as arrangement fees, solicitor fees, and other charges associated with the loan application process.
Lender criteria vary, and not all deals may be accessible. At UKMC, we search the entire market to ensure you secure the best possible deal for your specific circumstances.
Depending on how the funds are used, the loan may be regulated or unregulated. Loans for developments where over 40% is for residential use are regulated, while others are typically unregulated. Your adviser will clarify the nature of your loan.
*This guide offers an overview of available options, but it does not encompass all possibilities. For more comprehensive information, please consult an adviser.
*Additional fees may apply during this process. Your adviser will provide details on any extra costs involved.
Unlike conventional mortgages for existing properties, it funds projects where the property is either new or undergoing major changes. This financing considers development costs and the property’s future value. Lenders assess applications based on the loan size relative to total costs and end value, as well as the borrower’s track record and repayment ability. Interest on development loans is typically added to the loan balance instead of paid monthly, easing cash flow during construction. The interest is then paid when the property is sold or refinanced.
UK Mortgage Centre Limited is an Appointed Representative of Refresh Mortgage Network Limited. Refresh Mortgage Network Limited is authorised and regulated by the Financial Conduct Authority. We are entered on the Financial Services Register under firm number 1019794.
As a mortgage is secured against your home, it could be repossessed if you do not keep up the mortgage repayments. The Financial Conduct Authority does not regulate some forms of buy-to-let mortgages.
The Financial Conduct Authority does not regulate will writing and taxation and trust advice.
You may be charged a fee for your advice. A typical fee is £495, which would be payable when you receive your mortgage offer. Your dedicated advisor will discuss this further on your free initial phone call.
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