Should Brexit stop my development finance plans?
If you are a property developer that buys and refurbishes property you have probably seen a slowing of purchase activity over this unusually hot summer as we approach Brexit. May be flexible development finance to cope for different Brexit outcomes is worth considering to keep moving forwards?
Comments from the “Brexit Remainers” and the Governor of the Bank of England on deflation of house values have probably helped talk the market down. If you old enough you have probably seen it all before and will remain brave and bullish despite the relatively unknown outcome of Brexit. May be you see Brexit as a reset with less established competitors exiting.
As a Development Finance Broker I have access to a neat hybrid finance solution to cater for Brexit. It starts with refurbishment loan which can run up to 12 months then flips into a conventional buy to let mortgage. You can exit throughout that initial 12 month period by sale if after Brexit your outlook on the economy changes. If at the end of the 12 months you decide to let the property then the same lender will offer a term mortgage.
- Rates from 0.43% per month.
- Facilities up to 75% loan to value.
- Loans from £50k to £15m.
- No minimum term or minimum interest period.
- Existing customers are offering a 0.25% discount on their rate margin OR the arrangement fee when it converts to the onward mortgage.
Niche Advice offers appropriate advice to developers that are looking to carry out light or heavy refurbishments with or without Brexit Development Finance
Author: Payam Azadi
Payam Azadi is a partner at Niche Advice who are whole of the market Independent Mortgage Brokers. His role is very much focused on Property financing both on residential and commercial lines.