As well as some upfront fees that may be required by lenders, one of the biggest things to take into consideration when taking out development finance is the interest rates on this kind of loan. Due to the flexibility and eligibility criteria for this kind of loan, the interest rates do tend to be higher than that of a traditional loan such as a mortgage. The rate you receive from lenders will be provided based on the applicant’s experience, the property or land itself, its location and the amount you wish to borrow. Typically, the rates would lay between 5 and 12 per cent pa.

Top 10 Finance have over 20 years of experience working with a variety of lenders and have a panel of over 75 loan providers that they have built excellent relationships with to ensure that they can offer the right kind of lender for the right kind of property development project and this includes seeking the best possible rates for your situation. Rates do change from day to day and from lender to lender so the information supplied here is a rough guide to give you a basic idea of the kind of property development finance rates you might be looking at but you will only get a firm understanding once you have planning applications in place and have contacted us to discuss the possible lending options for your property.

If you would like further information on property development finance rates then please feel free to give us a call and a member of our team will be very happy to discuss this further with you. You could also make use of our loan calculators to give you an idea. Interest rates are not the only thing to take into consideration when taking out property development finance and you will also want to consider potential exit (usually expected with a high LTV) and arrangement fees (usually we would expect 1-2% of the amount of the loan, if applicable) set out in the terms of some lenders. Again if you would like further information on this please do feel free to give us a call and we will be happy to help.