Tips to Secure Property Finance Funding with Ease
Borrowing money for property development is not an unusual thing, as most of the people opt for various financial options. Building contractors mostly need such financing as they have to develop a good number of properties to make profit through selling them to buyers. Building contractors get funding for property development in three major ways. First of all, they make investment by their own pockets. However, it would not be adequate especially when the proposed project for property development is quite large as well as vast. The second option is to find potential investor for the property even before starting the project. For this, project plan has to be ready.
The final option or source for funding for building development projects is borrowing money from lenders like banks or other financial institutions. A lot of private lenders are also there, offering easy financing with minimal document checking. However, UK property finance companies come with higher rate of internet on the lending amount. They may have hidden costs too, in case borrower misses a repayment premium. Now, builder must have a few important virtues to ensure having a good amount of loan. Here are those things at a glance.
Good Credit History
As a property developer, you should have a good credit history. If your credit history is not good, you would not get loans from banks easily. In that case, you may have to apply for loan with collateral. Another property or piece of land which is owned by the developer can be used as collateral. If you have low credit score, you can opt for applying for loans from private lenders who do not even require credit score checking for disbursing loan amount. But, in that case you have to end up paying high internet rates.
Good Track Record
Acquiring a track record is important when it comes to applying for loans to the UK property finance companies. Most of the companies will check your track record as property builder. They shall inspect history of already completed properties. If there were some legal hassles during the projects, your track record would be considered as not suitable for lending.
Developing Building Plan
Developing building plan and getting it approved from the local municipal body is important. Certain standardization aspects are checked before giving permit to a building development plan. Once your plan is approved, getting a loan would be easier for you.