There are many different finance options when it comes to property loans. It can be difficult to understand which loan is right for you and your project. One of the main factors to consider is what you plan to do with your property development when it’s finished.
Different lenders supply different types of funding. Mainstream banks offer more common options like residential mortgages whereas specialist lenders like Hunter Finance provide a range of bespoke finance options for large and smaller scale development projects.
Call us today on 01825 749721 to see if we can fund your property development in London.
1. Residential Mortgages
If you intend to live in the property yourself, a residential mortgage is a cheapest and simplest option. You can also re-mortgage your property to pay for renovations. Hunter does not specialise in this type of finance.
2. Buy-to-let Mortgages
A buy-to-let mortgage is only available for property developments that you will be renting out.
3. Limited company buy-to-let
Some lenders will offer to buy to let mortgages to limited companies running as a trading business. Again, this is only for properties which will be let out.
4. Commercial Mortgages
Commercial mortgages are for properties from which a business will be run. The intention is for the property to be occupied by the business.
5. Bridging Loans
Bridging finance can be used to cover the cost of moving house if you buy your next home before you’ve sold your previous one i.e. to “bridge the gap”. In the property development industry, bridging loans can be used to provide fast cash to pay for building supplies or to finish a project which has gone over budget. Bridging loans are a great short term option for developers; find out more.
6. Property Development Finance
Property development finance is the best option for properties that will be completely renovated, if you plan to knock down property and build single or multiple properties in its place, or if you have bought land to build your development on. This is where Hunter Finance can help.
The properties must be sold once they are finished; the profits are used to pay back the loan and any additional costs occurred.
Hunter Finance is a private lender with years of property development experience. Our specialist property loans have helped complete hundreds of profitable developments across London and the South East.
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