Securing funding for a property development project can be challenging, especially when you need finance quickly or your project does not meet standard lending criteria. Development bridging finance can provide short-term funding to help you purchase, refinance or progress a development site while you arrange a longer-term finance solution or complete your exit strategy.
Whether you are buying a property to refurbish, purchasing land for development, funding a conversion, or preparing for a residential or commercial build, Discount Mortgages can help you search the market for suitable development bridging finance options.
We make development bridging finance as simple as possible.
The overall cost for comparison is variable and will depend on your circumstances. Please ask for a personalised illustration.
To get a suitable development bridging finance quote, your advisor will review your project, loan amount, property value, development plans, timescale, security, experience and intended exit route. Discount Mortgages can compare available lenders and help identify a solution that matches your development requirements.
If your bank or current lender cannot support your project, or the completion deadline is too tight for traditional finance, development bridging finance may offer a faster and more flexible option. It is commonly used by developers, investors and property buyers who need short-term funding before moving onto development finance, selling the property, or refinancing.
Development bridging finance is a short-term secured loan designed to help fund property development projects. It can be used when you need quick access to capital for purchasing, refinancing, refurbishing or preparing a development property.
This type of finance is often used where there is a clear plan to improve, convert or develop a property, and where the borrower has a realistic strategy for repaying the loan at the end of the term.
There are many reasons why developers and investors use bridging finance for development projects. The main benefit is speed. A development bridging loan can often be arranged faster than standard property finance, which can be useful when you need to complete quickly or secure a time-sensitive opportunity.
Another benefit is flexibility. Development bridging finance may be suitable for projects that traditional lenders are unable to support, especially where refurbishment, planning, conversion work or a short-term funding gap is involved.
Development bridging finance may help you:
Development bridging finance can be useful for refurbishment projects where a property needs work before it can be sold, let or refinanced. This may include light refurbishment, structural work, property conversions, extensions or improvements designed to increase the property’s value.
The lender will usually want to understand the current value, expected end value, schedule of works, estimated costs and your exit strategy. Your advisor will help you understand what information is needed and which lenders may be suitable for your project.
Lenders will usually assess the property, the proposed works, the borrower’s experience, the loan amount, the security available and the planned exit route. The exit strategy is especially important because development bridging finance is designed to be short term.
Common exit strategies include selling the completed property, refinancing onto a buy-to-let mortgage, moving onto development finance, or arranging longer-term commercial or residential finance.
Finding the right development bridging finance can be complex because every project, property and lender is different. Discount Mortgages can help you compare suitable options and guide you through the application process from enquiry to completion.
Our advisors can help assess your requirements, search available lenders, explain the costs, and support you with the paperwork required for your development bridging finance application.
Our advisors will do their very best to keep you informed at every stage:
Just need to enter some basic information into our online enquiry form and we will search the market for suitable development bridging finance options.
Or if you prefer, call us today and speak with an advisor who can discuss your property, development plans, funding requirements and exit strategy.
Development bridging finance is subject to status, valuation, lender criteria and affordability checks. Your property, land or security may be repossessed if you do not keep up repayments on a loan or mortgage secured against it.
