95% second charge for first time developers


With ever growing pressure on the Conservative government to provide much needed homes, first time development finance is something which should be readily available, to encourage development.

Furthermore, property valuations are currently unpredictable due to the uncertain post-Brexit property market and, as such, many lenders have scaled back the amount they will lend, versus the value of the project.

However, we’re working with a lender who is pushing the boundaries of what’s possible; this particular lender will allow a client to raise 95% of the value against either a prime principal residence (PPR), or a residential investment property (buy to let). Such a high loan to value (LTV) allows clients to release equity to not only fund developments, but fund any business activities that otherwise would not be possible.

Product information:

  • Up to 95% LTV
  • Secured against PPR or residential investment property
  • Pricing from 10.9% per annum

These rates are very similar to bridging rates, but the lender is a repayment second or third charge lender, and where we are finding the product most beneficial is within the development finance space.

How is this product useful for first time developers?

Often, first time developers struggle with land purchase costs, and all other associated fees with getting a development project off the ground. With these high LTV options, they can withdraw cash from their residence or investment properties to do just this, and potentially begin their development career.

For example, I recently helped a client secure their first development site using this product to release 95% equity from their main residence.

In a world where starting is always the hardest step, if you can get assistance on the first project, it could be the start of a successful property development career. Encouraging these types of developers to enter the market will give them the best chance of supplying the housing which is so desperately needed in the UK.

If you’re hoping to secure first time development finance, get in touch with our dedicated development finance brokers who would be more than happy to discuss your requirements with you.



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