Can first time developers get development finance?
In short, yes, they can. The process can take longer if it’s a development loan and you’re inexperienced, that’s because you haven’t got much of a past record to go off. Lenders and loan providers will, generally, look to get much more detail to understand how much of a risk you pose as a borrower.
The good news is that it’s something we can absolutely help you with and help you with the loan application process. Finance for development will need to be able to demonstrate that you have a good understanding of the market and your development project, as well as your costs, timelines and exit strategy for repaying your loan.
Looking to build residential developments?
You’re not alone, as a first-time investor you’re in good company as many of our first-time clients choose to develop residential property using finance as it can often be the most profitable way to develop without experience.
Residential property development can come in many different forms, such as developing an existing residential property into multiple properties or converting a commercial unit such as a B&B into apartments or flats.
If it’s residential property you’re looking at as a first-time developer we can help you with that even if you have little or no experience, we can talk you through the appropriate processes and the paperwork you’ll need before putting you in front of our panel of lenders.
It’s a somewhat different process to mortgage applications or approaching providers of mortgages as you’re looking at shorter term finance, more like bridging rather than a mortgage.
However, because the UK property market is so hot now, even for first-time developers, we’re finding it easier to place our clients with lenders willing to take on a little extra risk.
New build developers loans
From a finance, or financial, point of view, it can be more difficult to get development finance for developers with little experience if they’re looking to develop new build property projects.
That’s because they represent a much bigger risk to the lender, as new build developments can often fall through in the process of building. That’s not to say it’s not possible, but we’d advise that you get in touch with one of our brokers or advisors first.