Development finance is short-term funding designed to support property construction, refurbishment or conversion projects. It’s typically repaid through sale or long-term refinancing.

Property developers, investors and businesses planning ground-up builds, major refurbishments or conversions. Experience helps, but first-time developers may still qualify with strong plans and security.

Funds for development finance are usually released in stages, aligned with build milestone and verified by surveyors. This helps manage cashflow and ensures funds are used efficiently.

Terms usually range from 6 to 24 months, depending on the project size and complexity.

When borrowing for development finance, lenders will offer up to a fixed percentage of the gross development value and building costs, depending on your experience and the project’s viability.

No, however most lenders will require planning permission before allowing loan funds to be released for development finance.

Yes, development finance is suitable for both residential and commercial developments, including mixed-use schemes.

Development finance may face risks including delays in construction, cost overruns, or market changes which can impact your exit strategy. Working with experienced brokers like PMD helps to mitigate these risks.

A bridging loan is a short-term finance solution used to ‘bridge’ the gap between buying a property and securing long-term funding or selling another asset.

A bridging loan can be used for auction purchases, quick property acquisitions, refurbishments before refinancing, and buying before planning permission is granted.

Bridging loans can be arranged in as little as 48 hours, making them perfect for time-sensitive deals.

The typical loan term for bridging loan is usually up to 12 months, although some lenders may offer up to 24 months.

Interest on a bridging loan can either be serviced, rolled up or retained, depending on your individual cashflow requirements.

Risks that are associated with bridging finance may include higher interest rates and fees and a need for a clear exit strategy.

Yes, a bridging loan can be used for development, especially for short-term refurbishments or to secure a site before arranging development finance.