Ground-up development finance is used for projects where a property is built from the ground up, often on land that has been purchased separately. This type of borrowing typically involves higher risk and more detailed lender assessment. Lenders will consider planning consent, build costs, contractor experience, timelines, and projected end values. Funds are usually released in stages aligned with key build milestones. Delays or cost overruns can affect funding availability, making detailed project planning essential from the outset.
Risk warning:
Your property may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.
Conversion finance supports projects that involve converting commercial or mixed-use property into residential accommodation. These projects often require planning permission and careful assessment of structural, regulatory, and valuation considerations. Lenders assess the feasibility of the conversion, planning status, projected end value, and borrower experience. Funding may be structured to support both the purchase and conversion costs, with staged releases linked to progress. Understanding planning requirements, timelines, and exit options is key to managing risk throughout the project.
Risk warning:
Your property may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.
Self-build mortgages are designed for individuals building their own home, either by managing the project themselves or working with a contractor. These mortgages differ from standard residential lending, with funds typically released in stages as construction progresses. Lenders assess affordability, project costs, planning permission, and build schedules. Borrowers should consider potential delays, cost variations, and the need for contingency funding during construction. Self-build projects require careful financial planning to ensure the mortgage remains suitable from start to completion.
Risk warning:
Your property may be repossessed if you do not keep up repayments on your mortgage.
Exit finance is short-term funding used to refinance existing development or bridging finance, usually once a project has completed or reached a key milestone. It can provide additional time to sell or arrange longer-term funding. Lenders assess the completed property, loan-to-value, and exit strategy. Exit finance is typically used as a temporary solution and should be carefully structured to avoid unnecessary cost or risk. Clear planning around repayment and long-term affordability is essential.
Risk warning:
Your property may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.