The COVID-19 pandemic is first and foremost a health-based emergency, but it can also be classed as a financial one at the same time. In many ways, it has never been tougher to secure finance. However, with the lifting of lockdown restrictions and the vaccination programme, things are looking to pick up over the upcoming months. It is, therefore, worth developers and property investors alike to start thinking about securing finance for their next big projects.
Companies lending the money should get a sense of how well the borrower is able to repay them. With the pandemic affecting the way people are earning, these companies may be cautious when lending money in case they do not receive the complete payment back. By showing them a proven track record of financial stability, they will be more willing to lend as they will be confident of receiving back all the debt. Showing them evidence of this financial stability, whether it be through property development or by any other means, is vital to getting started back up again over the following months ahead.
It is highly recommended that property developers in need of securing finance should book a call in with a leading property finance strategist. Advice for securing finance for a property development project, or even a specialist mortgage for an HMO, is the most effective way of going about it from planning to execution. Vantage Finance is a fine example of a team working hard to ensure they have excellent relationships with specialist lenders. Booking in with Nicholas Wallwork’s trusted broker will be sure to help! Vantage Finance is one of the UK’s leading specialist finance distributors with a reputation for first-class service and the ability to complete the most complex finance cases.
Planning for any hiccups with a contingency plan should also help your case to secure finance. By brushing up on development knowledge, such as contingency sums that consider the pandemic, developers should be informed and better equipped to deal with any problems should they arise during the development stage. If any issues were to happen during this stage, it would affect the loan’s budgeting and repayment.
Speaking with lenders should allow developers to get a sense of time in terms of repayment. The COVID-19 pandemic has made lenders more cautious with how and where they lend their money. By agreeing on this aspect of time, both parties should be satisfied with the length of time agreed upon and know what they are getting into with regards to the window of time for repayment.
Further, by analysing the end goal of this development finance, the developer will get a sense of where they are in terms of meeting targets for repayment. They will also know if they are better off with a buy-to-let offering which may be a useful exit strategy should they not be achieving what they hoped to achieve.
If you would like bespoke advice relating to your development project, schedule a call with Nicholas’ trusted, award-winning broker. Visit Property Forum’s Property Finances pages today.