100% Yes! It’s possible for new property developers to borrow from development finance lenders. Development finance lenders will assess the viability of a project based on various factors such as the developer’s project and industry experience, the location, size and value of the project and also understanding the developers business plan. This is essential. You don’t even need to be a developer. You may be the person with the plan and you have a dedicated external team to execute that development plan. The development finance lender just needs to hang there hat on the ultimate word ‘security’. Both from the project and the person with the plan! A well-thought-out development proposal is essential when needing to secure development finance/bridging finance. Here is a breakdown of the things that can impact your development finance application:

1. Develop a detailed business plan: Present a comprehensive plan that outlines your project, its objectives, timeline, costs, potential risks, and anticipated returns. The lender will then run this against their own checks and make sure the project doesn’t pose a higher risk than the developer has suggested.
2. Research and feasibility study: Conduct thorough research on the market, the location of the property, demand for the type of development you’re proposing, and the potential profitability of the project. We have seen it many times before over the years whereby the developer suggests one thing and the lender has a completely different view. This isn’t to say the builder is wrong, it is just saying that the lending risk does have a different view when considering your mortgage lending.
3. Partner with experienced professionals: Consider partnering with experienced professionals such as architects, contractors, or consultants who have a successful track record in property development. Their expertise and reputation can strengthen your credibility with lenders. This is a big plus point when you are starting out.
4. Seek advice and mentorship: Consider seeking guidance from experienced property developers or industry experts who can provide valuable insights and advice on navigating the process. When speaking with a development finance broker like us, we will guide you through this process and make sure you are well prepared.
5. Prepare a strong application: This is where UK Commercial and Development Finance come into play! Be prepared to provide detailed financial information, including your own financial history, collateral, and any other assets that can strengthen your loan application. Failure to prepare or prepare to fail. It really is that simple! These finance companies are assessing hunreds of applications every week and the better packaged and lower risk applications get pushed to the top of the queue.
6. Explore different lenders: This is made even easier now thanks to access to commercial and development finance brokers like us. We have access to over 100 specialist finance lenders who can scan the bridging finance and commercial markets within no time. As well as having negotiation power with the lending rates and fees.

Securing financing for property development, especially as a new developer, can be a challenge but with the right people around you, with the right experience can make the process easy and cost effective. Persistence, a well-prepared proposal, and a thorough understanding of the project and market are key factors that can increase your chances of obtaining development finance.

For further information on development finance, bridging finance etc then please contact our team Development Finance Brokers on 0117 251 0563.