Residential Property Finance

Mortgages for Business can provide specialist funding for residential property finance and deal with a wide range of potential residential property finance cases. This can range from full scale housing development projects in which all that currently exists is the land that the residential property is due to be built on to small property rennovations internally.

Determining the rate that can be achieved for residential property finance will depend on the applicants past experience of similar ventures and the industry sector will also have a bearing on the mortgage rate available. The nature of the property finance project itself will also have an influence on the rate that can be achieved. With this in mind a good benchmark to consider would be the current Bank Base Rate + 1.5% to 2.5%.

With regards to the loan term, this will depend on the type and overall size of the project itself. Residential property finance is usually organised on an interest only basis.

When looking at loan to project costs with regards to property finance, this would usually be in the region of 70% - 75% of the purchase price and the full costs to build.

If the land that is being proposed for the project is already owned on an unencumbered basis then 100% of development costs may be able to be negotiated. In addition to this, once the land has been bought, if the planning permission can be improved upon then our consultants will be able to renogotiate the levels of residential property funding available using the new higher land and overall development values.

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