Bank Lending Reduces Significantly To Property Developers
Development finance for property developers is widely available although it is interesting that, according to Saving Stream that is a peer-to-peer lender, banks would appear to be reducing their lending to this sector in the last couple of years.
Apparently, research by the peer-to-peer lender has found that in the two years to April 2016 lending by banks to property developers has reduced to a figure of £14.9 billion in April 2016 from £32.5 billion in April 2014. One of the reasons why banks have reduced their exposure to such lending is possibly because they have had to lower the amount of lending in their balance sheets that is felt to be more of a risk.
There are of course many other providers of development finance here in the UK including specialist lenders as well as some peer-to-peer lenders. Investors in the later type of lending platform are hoping to obtain a higher return on their savings than they would in the likes of an interest bearing savings account whose rates are relatively low at the present time.
If you are a property developer looking to fund a new building project whether it be to purchase and renovate an existing property or build one or more new properties on a building site then rather than try to source suitable finance yourself which can be quite time consuming you may wish to avail yourself of the services of a mortgage broker who has access to a panel of numerous lenders. This should hopefully provide you with an excellent opportunity of obtaining a competitive development finance package.
In this respect, why not let us put you in touch with a specialist commercial mortgage broker who will do everything that he or she can to help you try to source a competitive property development loan on your behalf. We look forward to hopefully being of assistance.