When Should You Apply For Development Finance?
This is an interesting question and the lengthy answer is “ as soon as possible once you have obtained all the paperwork that will be required by the lender in order to fully consider your development finance proposal”. So, when you have obtained things like copies of planning consents, development costs and site location plans submit your application as soon as possible.
This will give the lender plenty of time to consider your proposition for development lending meaning that they do not end up feeling rushed into making a quick decision. Hopefully they will approve your request but if, for whatever reason it is declined, it will give you the opportunity to try to source a different lender that may be more receptive to your application.
Lenders do like to be presented with as much relevant information as possible so avoid contacting a lender if you only have half the paperwork only to have to return to them at a future date with the rest.
Another thing to bear in mind is that, if you have given yourself enough time, you may wish to consider approaching more than one lender if you are not bothered about remaining loyal to the likes of your existing bank which is often who people apply to first even though they may not be offering the best deal. Having obtained an agreement in principal from one lender does not mean to say that you cannot approach another lender to see if they will better the terms that you have been offered.
Having said that, if you were to approach ourselves seeking our help in arranging development finance we would be able to help you identify and submit your finance proposal to a lender on our panel whom we believe to be offering the most competitive deal. We would also ensure it is submitted at the most appropriate time.