Whether a property developer is looking to renovate or convert a property or even undertake a new build project then using a UK bridging loan for property development may be what they are needing to successfully complete their project.
There are growing numbers of bridging loan lenders looking at such projects and will help fund comprehensive renovations or major new building projects.
For those developers who have never used a flexible bridging finance loan previously, then they may be wondering what sort of rates they can expect to repay.
Essentially, lenders have no set rates when it comes to property development finance and every lender has different criteria and rates they will apply for the loan’s size.
Which offer the best bridging loan rates UK
It’s always a good idea to shop around with bridging finance lenders to determine which offer the best bridging loan rates UK though the potential property developers should appreciate that these rates may change on a daily basis.
One of the big attractions for property developers when it comes to sourcing bridging finance is that the interest repayments can be rolled up into the loan so the borrower has no monthly payments to make and simply repays the full amount when the loan falls due.
The next most important question for property developers looking for finance is how much they can borrow.
Again, the loan to value or the gross development value varies between lenders with some offering 60% loan to GDV while others will offer more.
A bridging loan UK term
Developers may also be wanting to know how long they can borrow the money for and a bridging loan UK term can range from just a few weeks or months and up to two years – again the lender’s criteria is key for this.
However, it’s not just property developers that are attracted to the potential of flexible finance since developers who buy property at auction can arrange the bridging finance quickly to buy the property and then refurbishing it for selling on.
Bridging loans are also used by professional landlords wanting to develop their portfolio by adding properties quickly when they become available.
Indeed, it’s the flexibility of bridging loans that makes them attractive for property developers and for anyone who has any questions about how a UK bridging loan can be used for property development then the helpful team at The Bridge Crowd are willing to help.