Finding the right lender for specialist development finance can be complex and time-consuming. This is why it is always advisable to apply via an established broker, who can simplify the process of narrowing down the available options.
Specialist development finance is not available from mainstream lenders, calling for a search that goes beyond the High Street. There is an extensive network of specialist lenders in the UK offering a broad range of development finance products, but not all are of the same high-quality standard.
The needs of development finance applicants have a tendency to be not just complex, but also time-critical. All of this emphasizes the importance of choosing the right lender, in order to avoid any potential delays, disruptions or disappointment.
As a general rule of thumb, what follows is a basic overview of the most important quality and performance checks that must be conducted, before choosing a lender for specialist development finance:
Product Range – A good development finance specialist will acknowledge and understand the fact that the needs of each and every client are unique. Consequently, every loan issued should be tailored from scratch to meet the exact requirements and budget of the individual borrower. This includes flexible terms and conditions, negotiable borrowing costs, and a broad range of facilities available to suit all requirements. Development finance should never be issued as a one-size-fits-all, off-the-shelf loan.
In-House Loan Provision – A good broker can point you in the direction of a development finance specialist that offers a full range of services in-house. Keeping costs and complications to the bare minimum means working with a lender that does not rely on third parties to underwrite or issue its products. Some lenders are only able to authorise loans upon receiving authorisation from their creditors, which can slow down and complicate the application process.
Experience in Developments – Your lender should have an established background in this specific field, and therefore understand the unique requirements of property developers. They should be able to demonstrate a credible track record in funding property developments like yours, and also be able to provide helpful advice to support and sustain your project.
A Rapid Drawdown Process – Property developers often seek development finance in time-critical situations, where urgent funding is needed to cover short-term costs. By its nature, development finance is typically issued as a fast-access, short-term funding solution for all types of property development projects. Unless a development finance provider can guarantee a rapid drawdown process, their products and services may be completely unviable.
Flexible Eligibility Criteria – Most development finance specialists offer their services exclusively to experienced developers with an established track record. Elsewhere, others are more accommodating, and will support first-time developers with viable projects. In both instances, eligibility criteria should always be as flexible as possible, and take all aspects of the borrower’s circumstances into account. A development finance application should not, for example, be refused solely on the basis of poor credit history.
Excellent Communication – Last but not least, communication holds the key to building and maintaining good working relationships with a development finance specialist. You should be provided with a primary point of contact for all questions and queries, and given a prompt response each time you contact your provider. On the whole, the quality of the client support they provide should be impeccable, and your business should be of the utmost importance to them.
For more information on any of the above or to discuss finding a good development finance provider in more detail, call today for an obligation-free consultation with a member of our team. – https://ukpropertyfinance.co.uk
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