Property development lending is a different climate to what it was ten years ago. The 2008 financial crash has prompted banks to reassess their investments and reign in potential debt from them.
Banks are under more scrutiny when approving loans, especially property development ones. Across the South East of England, Hunter Finance has been responsible for over 250 property developments. Our finance is an alternative to traditional banking lending.
Since the financial crash, banks continue to find themselves under increasing pressure to de-risk their balance sheets. Tighter regulations are forcing banks to reduce their debt exposure to meet their new capital holdings.
“Risk-averse banks continue to view property development as a speculative investment. This can result in many viable property development projects rejected by high-street banks.”
Despite viable development plans being presented to them, banks continue to enforce vigorous criteria’s that see many plans rejected. Banks are finding themselves more restricted with what they can and how they can lend their property development loans.
“Property development bank loans have decreased substantially. Figures show that banks lent £32.5bn for various property developments in 2014. However, in 2016, property developments were more than halved to £14.9bn.”
Banks are growing more cautious when dealing with property developers. Property development loaners, such as Hunter Finance, have continued to grow with each passing year. Hunter Finance specialises solely in property development loans giving us a vital advantage over high street banks.
If a bank has rejected your property development proposal, don’t give up just yet. Unlike banks, Hunter Finance deals with property development loans every day. We have a wealth of experience with property development.
“Our funding has paved the way for many property developments to go ahead. We’re proud that our services can help with first-time developers, especially when banks rejected their plans at first.” Robert Raymond, Managing Director
Relying on banks for property development loans is quickly becoming a thing of the past. Their reluctance to invest in new property has paved the way for Hunter Finance to become a leading property loan firm in the South-East region of England. Let us help you get your project started today.