Overview of property finance
Property finance is a broad term that refers to the various ways in which individuals and businesses can finance the purchase, development, or improvement of a property. Property finance can be used to fund a range of property-related activities, including buying a new home, investing in rental properties, developing new properties, or renovating existing properties.
There are many different types of property finance solutions available, and the most suitable option will depend on your specific circumstances and requirements.
Types of property finance
Bridging Finance
Bridging finance is a type of short-term loan designed to bridge the gap between the purchase of a property and the sale of an existing property or a long-term financing solution. They can be essential for investors looking to purchase property from auction. These loans are typically secured against the property being purchased, and can be used for a variety of purposes, including property investment, development, and renovation.
Buy-To-Let Mortgage
Buy-to-let finance is a type of mortgage designed for businesses and individuals who want to purchase residential or semi-commercial property with the intention of renting it out to tenants.
Commercial Investment Mortgage
Commercial investment mortgages enable businesses and individuals to purchase commercial property for the purpose of generating a rental income from renting the premises to business tenants.
Commercial Owner-Occupier Mortgage
Commercial owner-occupier mortgages can be a great way for businesses to become property owners and increase stability in their business through ownership of their premises. By using a commercial owner-occupier mortgage, businesses can secure long-term financing solutions and fixed interest rates, making budgeting and planning easier.
Development Finance
Development finance is a type of loan that is specifically designed to provide funding for property development projects, such as building new properties or refurbishing existing ones. The lender will provide the funds needed to start the development, which will typically be provided in stages throughout the development process.
Development-Exit Finance
Development-exit finance is a type of short-term finance that is used to refinance a property development project once the development is completed. This type of finance is typically used by property developers who are looking to exit the development project and realize their investment.
Mezzanine Development Finance
Mezzanine development finance is a popular form of funding for property developers who need access to more capital than is available through traditional senior debt development financing.
Second-Charge Personal Mortgage
A second-charge personal mortgage can be a useful financing option for homeowners who need to access additional funds but do not want to refinance their current mortgage. With a second-charge mortgage, borrowers can keep their existing mortgage deal and only borrow additional funds. This type of loan can offer lower interest rates and larger borrowing amounts than unsecured personal loans, making it a popular choice for homeowners who need to access funds for home improvements or debt consolidation.
