Property Development

Bridging Finance or Development Finance?

You may have noticed that we have pages explaining the use of bridging finance, and that these products allow for property “development”, so you may wonder what the distinction is between bridging finance and the definition of development finance used on this page?

Development finance achieves the same result as bridging finance and is usually cheaper. But it is dependent on the experience of the applicants. Bridging loans can be used more widely than just for development, is generally more expensive but does nor require the same level of expertise or experience.

Property Development

Bridging Finance or Development Finance?

You may have noticed that we have pages explaining the use of bridging finance, and that these products allow for property “development”, so you may wonder what the distinction is between bridging finance and the definition of development finance used on this page?

Development finance achieves the same result as bridging finance and is usually cheaper. But it is dependent on the experience of the applicants. Bridging finance can be used more widely than just for development, is generally more expensive but does nor require the same level of expertise or experience.

How do the products work?

Potential customers looking to develop property on a small scale tend to find that the door to the Bank is firmly closed. These post-recession days, the high street Banks tend to go for larger scale big budget deals, normally only undertaken by the more experienced and bigger developers.

However, there are plenty of other options available to the right “person” and project.

Typically, loans are available to fund the land/building acquisition and the development costs, over a six to eighteen month period. Some development loans are renewable, which can be a life saver in the event of an unforeseen time overrun.

How do the products work?

Potential customers looking to develop property on a small scale tend to find that the door to the Bank is firmly closed. These post-recession days, the high street Banks tend to go for larger scale big budget deals, normally only undertaken by the more experienced and bigger developers.

However, there are plenty of other options available to the right “person” and project.

Typically, loans are available to fund the land/building acquisition and the development costs, over a six to eighteen month period. Some development loans are renewable, which can be a life saver in the event of an unforeseen time overrun.

Talk to the experts

Drake Mortgages can source competitive rates from across the market. We have built relationships with specialist mortgage lenders who do not have a presence on the high street to secure finance where others cannot.

We can help arrange a bridging loan, a short-term loan that provides fast access to funding, or development finance for the specific purpose of building new properties or making substantial changes to existing properties.

CALL US ON 020 8301 7930

Talk to the experts

Drake Mortgages can source competitive rates from across the market. We have built relationships with specialist mortgage lenders who do not have a presence on the high street to secure finance where others cannot.

We can help arrange a bridging loan, a short-term loan that provides fast access to funding, or development finance for the specific purpose of building new properties or making substantial changes to existing properties.

CALL US ON 020 8301 7930