When you’re a property developer one of the key aspects of good planning is to plan your finances and how you’re going to fund your project way in advance.
With the introduction of the Help To Buy equity loan scheme from the government in recent years this type of property development has exploded in popularity, and it’s not just the UK’s biggest house builders that are acquiring and building on land, offering First Time Buyer mortgages on a new build, many smaller developers are too.
It’s also one of the most profitable types of property development when done right.
There are also now a large number of individuals doing self-build’s and building new homes that have accessed finance to complete their project and building your own home has become hugely popular.
What are new build developer mortgages?
Quite simply, new-build developer loans, or loans for new-builds, provide finance for large commercial developers, smaller developers and individuals when building new houses.
A specialist type of finance, these are usually offered under specific terms that allow developers to best manage their projects over time.
For example, many are offered over a 12 to 18 month period and release funds in stages throughout the project to allow the most effective process when planning and building.
Typically for more experienced borrowers and developers these are normally repaid upon the completion of the project either through refinancing or once the finished properties are sold.