What kind of property development finance is required? Mike Collins Mortgage Broker

Last Updated on: 21st November 2023, 10:20 pm

Mike Collins, an independent financial expert, often gets asked how to finance property renovations and building new properties. Mike Collins has 17 years of experience in the financial industry and can offer this advice to anyone who is looking for large-scale investment or buy-to-let properties.

He said that Property Finance is a broad term that covers many funding options such as bridging loans and property development loans.

There are many funding options for residential, commercial and mixed-use projects.

Mike Collins offers advice on how to finance your property project.

Find the best finance option for your project

Financing is often required by property developers or house buyers who want to start renovations. This is often in the form of a short-term loan with high interest.

It’s important to remember that eligibility criteria can vary depending on your personal credit score and how well your business plan is.

Bridging loans

These loans are a quick and short-term way to get cash quickly. It may be useful if you don’t want your dream home to go, but have not sold your existing house. You might be looking to purchase a property at an auction but need immediate funds.

You can also use bridging finance to fund lighter renovations at your property, such as plastering, decorating or a new boiler.

This is a great choice if you require cash fast. You can get money in as little as three days. Although interest rates can be more expensive than other finance products, they are still affordable because they are short-term.

You can get a bridging loan to cover the short time you need until your property is sold.

Lending to property developers

A property development loan is paid in installments over the course of a larger development project. It is typically paid in small amounts like this.

  • The purchase of a site for development is usually the first payment. It could be used to buy land or to finance a property that is in need of refurbishment.
  • The second portion of the loan can be used to cover any costs related to the construction. You can have it distributed in stages (called staged drawdown).

The loan agreement is made at the beginning and is repaid via mortgage finance or the sale of the property.

Purchase-to-let mortgage

This mortgage is available to those who want to purchase a house and rent it out. Be sure to read the terms for subletting and letting.

Lenders may require a deposit of 25-40%, which is not required for residential mortgages. These mortgages may have higher fees, and may be interest-only.

Personal loan

This type of finance, also known as an unsecured loan, is not secured by your property or other assets. They are a quick credit option that would allow you to purchase large assets such as property.

Fixed repayments are possible. However, it is best to repay the loan in full before the end of the term.


The easiest way to finance property development is with cash. Cash is a great way to finance property development. To avoid future debt, you should always keep as much cash in cash as possible.

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