The construction Industry is ever changing therefore we are regularly seeing new methods coming into play, and as lenders we need to think very carefully about how we fund such methods in the most appropriate way. Having an appreciation for property is extremely essential to both the Development and Bridging sectors, and many Bridging… Read more
Regions such as the Midlands and the North West of England are expected to see an increase in popularity among property investors, according to a development finance lender. A property and construction report from 2017 showed that 31% of property professionals felt the South East was the most popular region which offered the best outlook… Read more
The cost of building is highly likely to become more expensive as a result of the rise of the Bank of England base rate. At the beginning of the month the bank’s committee voted to increase the base interest rate from 0.25% to 0.5% and it is said that this could cause some lenders to… Read more
Commercial Finance funding can be somewhat complex and sometimes finding the right funding can prove difficult and confusing. Below highlights the two very popular funding options and key differences; Development Finance; The above refers to work from the ground upwards that will require certain permissions, i.e. whether building one or more properties from scratch or… Read more
While there is a constant reminder that there is a shortage of affordable housing in London and the South East, it seems that the specialist finance industry has done a meaningful amount to address this. We are aware that it is the small and medium sized businesses that effectively contribute and drive the UK market,… Read more
From the 30th September 2017 there will be further changes brought into place for the buy to let market, and how lending institutions review funding applications from professional investors and landlords. At the beginning of 2017, banks embedded the first of the PRA’s ‘changes to underwriting standards’ which were designed to bring consistency to lending…. Read more
Basement Developments have become an increasingly popular way to add value or expand a property. A recent report found that planning applications for basements had risen by 183% since 2012. If it is done correctly, a very high quality basement conversion can add substantial value to a property, done incorrectly and there will be an… Read more
Just when we think we have reached a plateau of new development lenders in the market, it seems that there is another surge of funders offering development finance products. This indeed should be a positive for our market and also be beneficial to our customers. Of course the practices and structures that we see in… Read more
Mezzanine finance is made up of two elements and is part-equity and part debt solution. It takes second priority in repayments after the senior debt, and takes a second charge over a property. Mezzanine finance is mainly used by borrowers with little liquid assets as it reduces the amount of equity investment that the project… Read more
Whether your a landlord, mortgage broker, or just have an interest in the Buy to Let market, you will need to know about the planned Prudential Regulation Authority changes.The new standards will be applied by 30th September 2017 and we have summarised below how they will affect Buy to Let mortgage applications.Portfolio Landlords: The PRA… Read more