DEVELOPMENT FINANCE IN NORTH KENT
We have access to lenders that provide development finance in North Kent, via short-term Bridging loans. These loans can help to ‘bridge’ the gap between one long-term financing arrangement and another.
Our experienced brokers cover all North Kent areas including, Dartford, Bexley, Bluewater, Bexleyheath, Orpington, Sidcup, Swanley, Chislehurst and Bromley.
Who Needs Development Finance
This type of loan is typically required for use by property developers or amateur landlords. This could be to purchase a property at auction, or for other instances where a mortgage is needed quickly.
Types of Property
Some properties are deemed uninhabitable. This could be without kitchen, bathroom, central heating, electrical works or new windows etc. A mainstream mortgage lender will not usually lend against this type of security, until any works have been completed.
Making the Right Choice
One option is to arrange short term lending to buy the property. Once works are complete, the property can either be refinanced to a traditional style mortgage, or it could be sold, to repay the initial finance.
Monthly payments are not normally required unless requested, instead the borrower receives the net loan amount. On repayment of that loan the borrower also repays any interest generated whilst the loan was outstanding.
Development Finance typically runs from 0 – 12 months and in certain circumstances, this can be extended longer. This type of short term lending can prove to be quite costly, so a strategy to repay (or exit) the loan needs to be in place. An exit strategy will be thoroughly researched by the lender to determine viability before the loan can be approved.
SOME BRIDGING LOANS ARE NOT REGULATED BY THE FINANCIAL CONDUCT AUTHORITY.
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
FREE MORTGAGE ADVICE UNDERTAKE CREDIT BROKING AND ARE NOT LENDERS. WE NEVER TAKE A FEE FROM OUR CUSTOMERS FOR THIS BROKING SERVICE.