The Benefits Of Shopping Around For Development Finance
The development finance market is extremely competitive with many lenders providing funds for both commercial and residential property development projects. From a customer’s perspective, this has to be a positive factor as it means that you have an increased opportunity to obtain a competitive package that fully meets your requirements in every way.
For instance, one lender’s underwriting criteria may differ to that of another. For example, some lenders may look more favorably on a newly established company seeking such finance than other banks. The percentage amount that they will lend in relation to the value of the assets offered as security (Loan to Value – LTV) may vary between banks. The amount of the arrangement fee may vary between lenders.
One of the most important elements to borrowing is the interest rate that you are charged by the lender. Again, this may differ between those lenders specializing in the development finance arena. When you consider that the amounts borrowed for this type of lending often run into hundreds of thousands of pounds if not millions then a 0.5% variance in the interest rate can make a significant difference to the total amount payable over the lifetime of the borrowing even though the term can be relatively short i.e. 1 to 2 years.
So, as you can see, it undoubtedly pays to shop around to get the right deal for you but how do you go about doing this. Well, you can do all the leg-work yourself but it will take up an awful lot of your time to do so – time that could be much better spent running your property business.
Alternatively, why not start the process by using the likes of a comparison website like ours as we have access to numerous lenders that provide specialist development finance. The process is simple and quick. You can also speak to someone that is experienced in this complex finance field.
We look forward to doing business with you.