Question 1

What is development finance used for?

Accepted Answer

Development finance is used for the purchase or the development of a property. The development work can be of commercial or residential nature.

Question 2

What are the average interest rates on real estate development financing?

Accepted Answer

The interest rates for development financing start from as low as 4% per annum. These rates are considered to be the ideal ones and can be hard to qualify for if you don’t have the right connections or experience.

Question 3

Which property types are eligible for getting development finance?

Accepted Answer

You can get development finance for commercial and residential property development purposes.

Question 4

How can property developers raise finance?

Accepted Answer

Property developers can raise development finance using different means including buy-to-let mortgages, buy-to-sell mortgages, bridging loans, specialised property loans, and personal loans.