Development Finance Uk And The Credit Crunch

In this year’s credit crunch, development of property may seem difficult. Bank margins have increased considerably, ratios for loan to value have lowered and there is increase in pre-let requirements for lending. As a result, lenders have become cautious in development finance UK and developers and investors from various places in Europe have noticed such trend.

The effects are evident. There are now few lenders offering residential and commercial development finance that requires more than eighty percent of value. And loan to value ratio has fallen below 60 percent. If UK lenders have offered development finance based on speculative scheme in 2007, the attitude changed this year as well. Lenders have tightened offering loans on this basis which means that developers may find it hard to get 100% development finance in less stringent arrangement. In essence, development finance UK may not be easy to get these days.


Despite this trend, however, developers are still assured that there is still demand and opportunity in the property market. As there are many lenders: high street banks, specialist property banks, bridging and non-status lenders and investors, they can still find one that can provide them the best deal. They just need to look and look, apply and negotiate and get the needed development finance UK. It’s a matter of working out the market opportunity in property development while facing the challenge of the credit crunch. In these times, feasibility, wise decisions and strong will are the keys.

By: Cherry Bo

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Cherry Bo is providing financial solutions to development projects or owning property by the services of Dial Financial Service LTD. With Dial Financial under development finance UK, you have various options to get the needed funds.

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