Securing affordable property development finance fast can be vital in getting a sale agreed and pushed through quickly.

But if you don't have sufficient funds to buy your next investment property readily available you don't have to miss out.

By using a bridging loan for buy to let investment properties to bridge the gap you can still take advantage on profitable buy to let deals while you're waiting for your finance to come through.

We take a closer look at how to use property development loans to boost your property development portfolio.

What are bridging finance solutions?

Bridging loans are short term secured loans typically used to provide quick, temporary finance to cover an outlay while you're waiting for other funds to come through.

For example to purchase a buy to let property before mortgage funds are agreed or while a second property is sold.

If you need to borrow a large amount for a short period of time a bridging loan could be a suitable solution.

Find out more in our guide What is Bridging Finance?

How to finance property development using bridging loans

Securing flexible yet affordable residential property development finance will make a big difference to the success or failure of your property development plans.

If you need funds to re-develop a property prior to sale, to buy a larger buy to let property before the sale of another completes, to use as leverage for a quick property purchase or for one of a host of other reasons for needing short term borrowing, property development bridging loans are worth looking at.

However, if you are looking to build your own home outright a self build mortgage could be a better solution; they are specifically tailored to individuals looking to build their own home and release funds in stages to coincide with the construction of your property.

Read more in our guide - How to Get a Business Bridging Loan.

Getting the best property development bridging loans

While time may be of the essence it's important to compare property development bridging loans carefully before you apply.

Work out the total amount you need to borrow (including any legal or competition fees where appropriate) and the exact LTV of your required bridging loan, so you can compare providers who offer loans that fit the bill.

Given the large sums involved and the short time scale involved the best bridging loan rates for property development can vary substantially among different loan providers.

Our property developers finance comparison table includes monthly interest rates for leading specialist bridging loan providers, so you can get an initial idea of the cost of borrowing.

However, it's important to remember that there will likely be a number of additional charges and fees to pay when taking out a property bridging loan, including arrangement fees and early repayment charges, where applicable.

The actual interest rate you'll pay will depend on a combination of the amount you're looking to borrow, the value of the property you're securing the loan upon, the value of the property you're looking to buy and your personal credit history.

To get a full breakdown of the costs and a quote based on your individual circumstances, just click on the apply button and enter your details.

About our bridging loans comparison

Q

Who do we include in this comparison?

A

We include bridging loan lenders from our broker, Mortgages Warehouse. Here is more information about how our website works.

Q

How do we make money from our comparison?

A

We have commercial agreements with some of the companies in this comparison and get paid commission if we help you take out one of their products or services. Find out more here.
You do not pay any extra and the deal you get is not affected.