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Development Finance Explained?
Development Loan Information Hub
What is development finance
Property development finance can take numerous forms but all are used by developers to fund construction projects of varying degrees from light through to ground-up builds. The loan facility is constructed over a short term period typically from 3 months through to 24 months with the lender making payment either m monthly or sometimes tied into key milestones of the development. Exit strategies for development loans can vary slightly but typically they are either paid upon sale of the property or refinanced once the project in question has completed.
How do you qualify for development funding
There are hundreds of different development loans on the open market cover an extremely wide range of offerings from terms, base rate fees and scope of projects. A lender’s eligibility criteria will come down to numerous factors but the key area of concern to an underwriter apart from the loan amount terms will be the property/land location, the capital that the lender is putting into project themselves and their experience level. While there are a number of contributing factor these are key areas that help to structure the agreement in principle that an underwriter will be able to present to the lender which will include their terms and the rate at which they are able to facilitate the property development loan.
Who would want to use development finance
– lenders looking to develop a property, both new and experienced developers can apply
– Lenders buying a property at auction which require renovation
– Developers who are renovating a property and need to refinance
– Developers changing the use of a property i.e. changing offices into a residential property
What are the different types of development finance projects
Light refurbishment
One of the most straight forward forms of projects for this funding type a light refurbishment can typically consists of make aesthetic changes to a property which can include purely superficial changes such as works on flooring, ceiling interior and exterior walls.
Medium refurbishment
The next level up on the property development scale this can include such renovation works as internal wall movement, electrical work, central heating work, heavy duty external land scaping and creation of new self contain rooms.
Heavy Renovation
This goes past puely asthetic renovations and involves full-scale re-development of internal rooms, the building of extensions, loft conversions and even partial demolition of the existing property.
Ground-up
This constitutes a complete development build from the ground up from footings all the way through to completing the build structure to include all key ancillary attributes to be able to pass planning laws to meet required standard to be deemed habitual or eligible for sale on the open market.
How Property Development Finance Works
In practice when lenders are looking for property development loans they are looking to fund the construction or works of the development but the reality is that a lot of lenders are also looking to fund the purchase of the property. As such the funding required is typically being used for both works and purchase and the rate received will be based on the above previously mentioned factors. Then based on the type of project the lender is looking to undertake this will determine the type of development loan they will look to secure for instance a light to medium refurbishment loan might see the lender seek a ‘refurbishment bridge’ type facility which will see the lender complete the renovations work over a set period of time with the loan then switching to a mortgage later. This could be an option for a person looking for a regulated loan i.e. with the view to live in the property once finish.
For a heavy to ground-up development the lender could look to secure a more typical type of development loan which would part purchase the property and also fund a good percentage of the construction cost. So an example might be the lender has purchased a property at auction paid the deposit and they now need the funds to complete the purchase, the purchase part of the loan would take care of this and then based on the agreement of the facility they will have a set day one drawdown that they will have in place to start the construction. Following this, the lender will then have the remaining amount of development fund released in either staged payments of development tranches when they have hit key build milestones.
In order to be able to ascertain your funds for drawdown the underwriter will measure all of your assets review your projections, take into account any relevant planning has been approved, as previously stated they will take your experience into account. For new inexperienced developers assigning a project manager and a reputable construction company can be a measure taken to ensure that a deal is agreed and also can be important to securing an improved rate. While a number of lending providers may refuse inexperienced developers Property Finance Direct are renowned within the industry for their ability to work with them and to provide project managers with the ability to help and guide junior developers.
Example of a development loan costing
In this scenario we layout the example of a development loan and how this would work out in the overall costings. In this situation, if the developer bought a rundown 6-bed period property and received planning permission to convert it into a 10 bedroom HMO. In this scenario, if they had secured the property already and needed £600,000 to complete the development. Property Finance Direct would provide the development loan over an agreed period of 12 months at a rate of o.7%, with the development taking 8 months to complete with an additional 4 months built into the facility so that they had time to sell the property as this was their exit. Property Finance Direct would apply a monthly charge to the loan but let assume they completed the development in month 8 and then it took them 1 month to sell we still would not charge any early exit fees, meaning that we only took our interests for the months that the facility was in place.
Why Do Lenders Need Their Own Capital With A Development Loan?
One of the main reasons from the funder’s perspective is that it provides security to the overall facility and allows underwriters to attribute the rates to the lender based on the degree of funds they are investing into the project personally. Naturally the more the developer puts into the facility themselves either in the form of cash and/or security the better the terms they will be able to secure. From the lenders perspective by taking a development loan they are not having to fully fund a project thus free up a percentage of their own capital should they be looking to invest in more than one project also it means they are tying up less capital and as such have more liquidity readily available.
How is development finance different from bridging finance?
One of the key difference is the way in which lenders repay the loan, with development loans as mentioned above this is paid monthly and/or tied into construction milestones. With bridging finance on the other hand this is repaid at the end of the term in a one-off payment. In both cases the lender needs to pay close attention to the terms of the agreement as some lenders will tie early exit fees to a loan so even if you don’t require the loan for the entirety of the term you will still have to pay the full completion fees. This is where Property Finance Direct can help whether you need a bridging or development loan we work with our developers to ensure that the vast majority of our facilities don’t include an early exit fee.
How is a development loan different from an auction loan?
Auction finance typically requires a lender on having successfully won at auction to have the property bought within 28 days, this can be deemed as a short time scale something that development finance is not always known to be. Essentially the lender is looking for quick finance from a lender who can fund both pre and post auction as such you would typically be looking for a bridge loan. This can be the funding of choice for experienced developers as they will be used to working to short time frames when looking to refinance or fund the works themselves. A development loan, on the other hand, provides a slower route to drawdown which can include valuations, asset managers and a more intensive underwriting process, hence why auction finance for purchase favors experienced developers. However, it is worth noting that a company like Property Finance Direct
What are the advantages of property development finance?
– One of the main reasons adhered to in a previous point is that this type of funding allows developers to retain a certain amount of liquidity as they are not required to put in as much capital into a project directly. While there are a very small number of lender who will provide a 100% loan the reality is that this will come at an extremely high rate compared and will require significant collateral, conditions and even guarantors. While this can seem attractive acquiring terms to meet a developer’s needs of fast finance at a great rate are far more achievable by providing a percentage of collateral against the property development loan. Conversely, the more funds/security you invest into the facility can produce far greater terms let alone a great rate, what you can find is the additional benefits make the loan far more attractive to developers. For example at Property Finance Direct depending on the level of security that you invest into the loan you can secure development finance with no need for a valuation, no guarantors, funding delivered in days not weeks +more.
b– Development scope can increase when using this type of property loan. When self-funding a project you can find finances restricted and your development threshold is set at a certain level due to budgetary constraints. However by working with a loan provider who could be funding anywhere from 75%, 85% or higher than naturally with a greatly reduced initial outlay then the level of project that is taken on can be far greater than self-funding.
– Improve Project ROI; due to the level of capital you will be putting in and your ability to leverage against this, yes it’s true that your overall profitability will be slightly affected due to the payments you will be paying for the facility but this is significantly outweighed by the reduced funds you will be using to secure the development thus leading to a greater return on investment on the reduced initial capital laid out.
– Experienced assistance is another substantial benefit that can be provided by some lenders. Property Finance Direct, in particular, is renowned within the industry for providing excellent portfolio managers which provide support for the developer from the start to the end of their project. This can be particularly beneficial to new developers who are new to the lifecycle of a development project and can find themselves with milestones overrunning or finding build costs spiraling. This is just one of the many reasons why Property Finance Direct recently won an award at the “What Mortgage Awards 2019”.
What are the restrictions to apply for development finance?
Typically security is a big concern for lenders so having a degree of capital in place to secure against the proposed purchase is very important. Also as previously mentioned experience can be a determining factor. Another substantial area that will need to be addressed prior to the application is planning permission. Looking for a facility on a property to development without planning agreed is not the recommended course of action, a lender may still take a view to have the loan in principle in place should the
How long does it take to apply for a development loan?
The application process can be done very swiftly, with a soft application even able to be done online with a number of providers. For example, you can do a soft application for development finance online with a number of key questions being answered and typically you could receive a deal in principle within 24 hours. Property Finance Direct are particularly proud of their response time with the vast majority of development enquiries being returned to the applicant within 90 minutes. When we receive a development enquiry all our applicant will only ever receive a soft credit check with no implications to their credit score.
How long does it take to receive development funding?
Where as the application process highlighted above can be done swiftly to produce a deal in principle if this is then accepted by the applicant then further formalities will need to be undertaken before the loan facility can move to drawdown. The length of this process will be down to numerous factors, in particular, the level of security provided by the developer may determine if they need a valuation on the property being purchased or not, also have they got their legal representative in place and are they fully abreast of their deal with the lender, what security is being used and does this also need to be valued. With these factors taken into consideration then an efficient drawdown process can be delivered in as little as 10 working days however if there are numerous securities involved in the deal and if third parties involved are inefficient then the funding can run into the months. Thus developers should look to provide as much transparency as possible to the lender and have legal representatives in place to ensure an efficient drawdown process.
Why should I use Property Finance Direct for my development loan?
Development loans from Property Finance Direct come without the vast array of restrictions that you could be subject to from other lenders.
– One of our key market offerings is that we are open to developers of all experience levels
– We provide development finance from £50,000 through to £5M
– We can build loans tailored to your needs which can be constructed around 1st and 2nd charges to provide flexibility to ensure you get an loan to meet your needs.
– We can fund up to 80%* of the project costs
– The vast majority of loans don’t include early exit fees
– We can work fast to ensure that a development loan can be in place to secure a property
– Specialist portfolio managers are assigned to all cases to ensure your project can benefit from experienced assistance
– We work with developer to provide a schedule of drawdowns that benefit their project timescales
– Increased day one drawdowns can be applied to ensure greater initial working capital is available is needed.
– All money is provided direct from Property Finance Direct to substantially cut red tape, we are the lender
How Much Will A Development Loan Cost?
Unlike a bridging loan, a development loan does present an ongoing monthly cost, as the repayments will need to be budgeted for every month. As highlighted within the example above this will have a direct result on the profits, charges can be offset by taking on a larger project or multiple projects. As noted earlier in this article one of the benefits of utilising development loans is the ability to keep a degree of your capital back, which can then allow developers to have more than one project running at once.
How is a development loan monitored?
Your lender will require regular site updates to ensure that the development is on track and is adhering to the schedule of works outlined when the loan facility would have been approved. This is particularly important as the development will have key milestones built into this schedule of works and it is these milestones which when achieved will release further tranches of the development loan for ongoing construction costs. This is a safeguard for the lender to ensure that the developer is keeping to their obligations, to further ensure the tranches can be securely released the lender will send out a quantity surveyor prior to the release of funds, this can be an internal qualified member of the company or a third party surveyor will undertake an assessment on behalf of the lender.
Do you need a development loan?
Contact Property Finance Direct today to discuss your development loan needs on 0161 710 2006 we have underwriters on standby to discuss your case. We can review your needs to explain all your available options from our wide-ranging development funding to discover personalised loans tailored to your needs. We provide some of the most flexible terms and competitive rates on the UK market regardless of experiences, project size and required drawdown time frames. Our funding solutions come directly from Property Finance Direct we are the lender meaning we can save you more on fees.
Why Property Finance Direct?
Whole of Market
Get Clear & Transparent Prices: our experts can scour the whole of the market to ensure you receive the best rates available tailored to your individual needs
Deals in Minutes
Applying for a loan with us takes minutes: simply enter your details and start receiving deals in principle in as little as 60 minutes*
Real People
When you call, you'll get to speak to our team of financial professionals direct who have an understanding of you and your needs – we don’t believe in red tape
Fair Decisions
The borrower is important to us not just your credit score, so irrespective of your investor or developer status all loans applications are comprehensive, quick and fair.
* More info speed of decisions & loans offered is indicative, based on a case by case basis & will be confirmed at lender underwriting
Got Questions?
Here are some of our most frequently asked questions. If there’s anything we haven’t
covered then don't hesitate to contact us direct:
Applicants will only ever go through a soft footprint that won’t affect your credit score. If you do decide to take a loan out, it’ll show up on your credit report.
We source loans and are independent of individual banks, unlike a bank we don't review your requirements and circumstance and provide a flat rate. We can consider the whole of the market and operate to provide the most viable options to investors, developers and businesses of all sizes. This means we're able to source funding options and to also to ensure more people who have previously been refused a loan.
It takes up to two minutes to apply irrespective of loan size. Dependent on the purpose of the loan drawdown times can vary. But once all required documentation is completed and verified a bridging loan can be deposited in as little as 3 working days and a development loan can be as little as 10 working days.
Yes, we source lots of flexible options so if this is an option you'd like to pursue we can look to provide as many flexible options from across the market.
Loans are used for a variety of reasons: all types of property funding i.e. purchasing, refinancing, developing. Also for businesses needing to fill a funding gap relating to paying large tax bills or cash flow concerns.
Should you need more funds prior to redemption then this can be arranged either through sourcing consolidated or second, or third charge facilities. Also should you need to increase the repayment period again we can work with funders. Please note to arrange this there is the possibility of your initial rate being increased.
Representative example
An unregulated development loan of £500,000 with a fixed interest rate of 1.1% per month, repayable over 24 months. The loan covers up to 70% of the Land-to-Gross Development Value (LTGDV), calculated at £400,000, resulting in an initial loan amount of £280,000 (£400,000 LTGDV x 70%). Additionally, initial build costs of £150,000 are included in the loan amount, bringing the total to £430,000. Subsequent building cost tranches, totalling £70,000, are released at specific project milestones. The total repayment at the end of 24 months would be £612,000, including the loan amount, interest (£132,000), and fees (£20,000). The representative APR is 13.7%. This example is for illustration purposes, and actual loan terms may vary. Review all conditions before accepting any loan offer. It's crucial to thoroughly review all conditions before accepting any loan offer.
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Property Finance Direct is a trading style of Seek4 Ltd which is an appointed representative of Commercial Finance Brokers UK Limited which is authorised and regulated by the Financial Conduct Authority (FRN 736199) for the purpose of consumer credit business. Commercial Finance Brokers UK Limited is registered in England & Wales under company registration number 06353973. We are a credit broker, not a lender. We work with the whole of market and may earn a commission from the lenders, this amount varies between lenders.
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Privacy and Terms
PLEASE READ THIS WEBSITE TERMS OF USE CAREFULLY
Who we are
Property Finance Direct is a trading style of Seek4 Ltd which is a Commercial Finance Brokers and are an appointed representative of Commercial Finance Brokers UK Limited who are authorised and regulated by the Financial Conduct Authority (FRN 736199). We act as a broker for our customers. Seek4 Ltd is authorised and regulated by the Financial Conduct Authority, No. 1009136.
How we will use the information about you
At Property Finance Direct we take your privacy seriously and will use your personal information in a number of ways which will help us approach lenders in order to obtain an offer of finance for any project you instruct us to seek finance for.
We may share your information with, and obtain information about you from, credit reference agencies or fraud prevention agencies.
We may also share details about you and any offer of finance to any lender, guarantor (intended or otherwise), and your legal, property or accounting advisors as well as to any individual or firm who may have introduced you to us in the first place.
In addition to the above, we will not disclose your information to any company or individual other than in connection with obtaining the finance you seek except to help prevent fraud or if required by law to do so.
If you are an introducer we will use your data solely to contact you with information about Property Finance Direct and Commercial Finance Brokers UK Limited about the services we can offer. We will never provide your data to 3rd parties.
For further information on how your information is used, how we maintain the security of your information and your rights to access/alter and change information we hold on you, please contact Property Finance Direct Jonathan Holt or Karl MALLETT at Commercial Finance Brokers UK Limited on 0800 999 2015 or karlmallett@cfbuk.org
Additional Marketing
If you are a customer, we will not use your data for marketing purposes. If you are an introducer, we will contact you from time to time with details of our services
Your Personal Data – customers/clients:
What we need
Property Finance Direct and Commercial Finance Brokers UK Limited will be what is known as the “data controller” of the personal data you provide to us. We collect personal data about you which may also include any special types of information or location-based information.
In order to meet our contractual obligations to you to source an offer of finance for your consideration we will gather information in the following areas:
· Personal information eg your name, date of birth, marital status, family status,
· Your contact information eg phone numbers, personal and business address, email addresses
· Financial information eg bank, credit card and mortgage statements, statements of your assets & liabilities; statements of your income & expenditure, financial information about your business, copies of your credit reports etc
Why we need it
We need to know your basic personal data in order to obtain an offer of finance on your behalf from lenders. We will not collect any personal data from you we do not need in order to provide and oversee this service to you.
Automated Decision Making: Our panel of lenders may use automated decision-making in respect of your application for finance. We will only collect the minimum amount of data needed and have a clear retention policy for the profiles we create.
You have the right not to be subject to a decision based solely on automated processing, including profiling, which produces legal effects concerning you or any significant effects. You can request human intervention and challenge a decision made this way by contacting us at karlmallett@cfbuk.org
Processing is lawful under GDPR because we have asked you to take specific steps before entering into a contract.
What we do with it
All the personal data we use is controlled by Property Finance Direct and Commercial Finance Brokers UK Limited in the UK. However, for the purposes of IT hosting and maintenance, this information may be located on servers within the European Union. No 3rd parties have access to your personal data unless the law allows them to do so. We have a Data Protection regime in place to oversee the effective and secure processing of your personal data. More information on this framework can be found at Property Finance Directwebsite or www.cfbuk.org
We may pass your data to UK based lenders in order to provide you with offers of loans and mortgages suitable to meet your requirements.
Your data is stored electronically on our encrypted server which is at Commercial Finance Brokers UK Limited’s offices in Woodbridge, Suffolk. This server is backed up to a Microsoft OneDrive, which is a cloud-based facility. We also keep some records in paper format. These files are stored in a locked office at our premises and will be archived to an external 3rd party archiving company once your loan has completed and drawn down. If you do not complete a loan through us we will destroy all data, we hold on you after 6 months.
How long we keep it
We are required to keep your data for a minimum of 6 years after which time it will be destroyed.
What are your rights?
If at any point you believe retained information is incorrect you can request to see this information and even have it corrected and possibly deleted. Providing you with this information is free of charge, but charges may apply for excessive requests.
If you wish to raise a complaint about how we have handled your personal data, you can contact our Data Protection Officer, Property Finance Direct DPO Jonathan Holt who will investigate the matter or Commercial Finance Brokers UK Limited’s DPO Karl Mallett who can be contacted through karlmallett@cfbuk.org or 0800 999 2015
Where relevant, you have the right to withdraw consent at any time and this means that we cannot process your data provided once your consent has been withdrawn.
If you are not satisfied with our response or believe we are processing your personal data not in accordance with the law, you can complain to the Information Commissioner’s Office (ICO).
We will share your details with those banks and other lenders who might be interested in lending money to you, so that they can process your information, allowing Property Finance Direct/Commercial Finance Brokers UK Limited to offer suitable and sustainable products that they provide. If you consent to us passing your details for that purpose sign to confirm.
Borrower Privacy Policy & Terms
At Property Finance Direct we take privacy seriously and we are committed to protecting it.
This policy explains when and why we collect personal information about individuals, how this information is used, the conditions under which it may be disclosed to others and how it is kept secure.
We are made up of a number of individual companies. Property Finance Direct is a trading name of Seek4 (Company number 14870251) and our associated companies – please see the end of this Privacy Policy for a list of our associated companies. Whenever dealing with us in respect of an application for funding and any subsequent financing to you, the controller of your personal information will be the company that is dealing with your application and (if applicable) with which you enter into a funding agreement. Property Finance Direct may carry out administrative functions relevant to your application (such as credit checks), in which case it will also be a controller of your personal information.
If our customer is a corporate entity, we may collect personal data about you from our customer (for example, we may collect information about directors and other relevant individuals of the customer). References in this policy to “you” is a reference to the individual whose personal data we have collected, whether directly from you as the individual, or from our customer who is a corporate entity.
INFORMATION WE COLLECT ABOUT YOU
We collect information about you at various stages during our relationship with you, including when you or our corporate customer make an application to us, when we enter into an agreement with you/ our corporate customer, during the course of providing our services to you/ our corporate customer and on other occasions when you contact us or when we ask for information.
Personal information you give to us: The personal information that we collect about you from you, your broker or our solicitor (as applicable) is as follows:
name
date of birth
residential address and address history
contact details such as email address and telephone numbers
financial information, including bank statements and details of your assets
employment details
information contained in identification documents, including passport, driving licence and household bills
information provided by you when filling in a form on our website
details contained in your application to us
details of the account you have with us
your marketing preferences
Personal information we receive from other sources: We obtain certain personal information about you from other sources, as follows:
information we receive following enquiries we make with your current and previous lenders, employers, estate agents, landlords, accountants, bankers and the UK Finance Mortgage Lenders Possession Register;
information we receive following enquiries we make with credit reference and fraud prevention agencies – please see ‘Use by credit reference and fraud prevention agencies’ below for further information; and
publicly available information obtained from the Internet and other sources such as The Insolvency Service, HM Land Registry, HM Revenue and Customs, Companies House, The Gazette, the electoral register and other public sources.
If you fail to provide us with any mandatory information that we request from you when you apply to us, we will not be able to proceed with the checks and risk assessment necessary to enter into a contract with you; we will not be able to consider your application nor propose an offer to you.
USE OF YOUR INFORMATION
The purposes for which we use your information and the legal bases under data protection laws on which we rely to do this are as follows (as relevant):
Performance of the contract with you or to take steps to enter into it. This includes verifying your identity, assessing your/ our corporate customer’s application, underwriting, and, if we enter into an agreement with you/ our corporate customer, administering the agreement including tracing your whereabouts to contact you and recover debt and to provide you with the service under that agreement (i.e. managing your account, communicating with you, providing updates on the status of your account, dealing with any complaints and notifying you of any changes to this Privacy Policy).
Our legitimate interests or that of a third party for the following purposes:
to assess your application and any lending risks, this includes analysing the information we receive from credit reference agencies to assess and understand your payment performance;
to make decisions on credit, loan arrangements and other services;
to prevent fraud and money laundering, and to verify your identity, in order to protect our business and to comply with laws that apply to us;
for management and audit of our business operations including statistical analysis and accounting;
to enhance and personalise your customer experience by analysing patterns and customer behaviours, including contacting you to ask you about your experiences (we may engage a market research company to contact you on our behalf);
to carry out statistical analysis to help with decisions about credit and account management;
to recover debt, for repossession, and trace your whereabouts;
to monitor communications between us to prevent and detect crime, to protect the security of our communications, systems and procedures, and for quality control and training purposes;
to carry out marketing activities (other than where we rely on your consent) e.g. to tailor marketing communications or send targeted marketing messages via social media and other third party platforms; and
for network and information security in order for us to take steps to protect your information against loss, damage, theft or unauthorised access.
The funder of the proposed facility will receive certain information about you (see ‘Use by third parties’ below) and relies on its legitimate interests to carry out its assessment of any lending risks in order to protect its business and to better understand the profile of the borrower and its ability to repay.
Any security party named in the security documents (and its legal advisers) where this is relevant to the facility taken by you/ our corporate customer will receive all of the information we have obtained about you for its legitimate interest of obtaining separate independent legal advice to allow it to assess any risks and decide whether to proceed in its role as security party.
Compliance with a legal obligation. This includes when you exercise your legal rights under data protection law, to verify your identity, for the establishment and defence of our legal rights, for activities relating to the prevention, detection and investigation of crime, to conduct credit, fraud prevention and anti-money laundering checks and for compliance with our legal and regulatory responsibilities. This may also include processing special categories of data about you, for example for our compliance with our legal obligations relating to vulnerable people.
Consent. Where we have your consent to use it for direct marketing communications (by us and/or any third parties referred to in the relevant consent request). You can withdraw your consent to marketing at any time by following the unsubscribe instructions in the relevant communication.
AUTOMATED DECISIONS
As part of our processing of your personal information, we may take decisions by automated means.
In regard to fraud prevention checks, you may automatically be considered to pose a fraud or money laundering risk if our processing reveals your behaviour to be:
consistent with that of known fraudsters or money launderers;
inconsistent with your previous submissions; or
you appear to have deliberately hidden your true identity.
USE BY CREDIT REFERENCE AND FRAUD PREVENTION AGENCIES
In order to process your application, we will perform credit and identity checks on you with one or more credit reference agencies (“CRAs”). We may carry out further periodic searches in the management of your account.
To do this, we will supply your personal information to CRAs and they will give us information about you. This will include information from your credit application and about your financial situation and financial history. CRAs will supply to us both public (including the electoral register) and shared credit, financial situation and financial history information and fraud prevention information.
We will use this information to:
assess your creditworthiness and whether you can afford to take the product;
verify the accuracy of the data you have provided to us;
prevent criminal activity, fraud and money laundering;
manage your account(s);
trace and recover debts; and
ensure any offers provided to you are appropriate to your circumstances.
We will continue to exchange information about you with CRAs while you have a relationship with us. We will also inform the CRAs about your settled accounts. If you borrow and do not repay in full and on time, CRAs will record the outstanding debt. This information may be supplied to other organisations by CRAs.
When CRAs receive a search from us they will place a search footprint on your credit file that may be seen by other lenders.
If you are making a joint application, or tell us that you have a spouse or financial associate, we will link your records together, so you should make sure you discuss this with them, and share with them this information, before lodging the application. CRAs will also link your records together and these links will remain on your and their files until such time as you or your partner successfully files for a disassociation with the CRAs to break that link.
The identities of the CRAs, their role also as fraud prevention agencies, the data they hold, the ways in which they use and share personal information, data retention periods and your data protection rights with the CRAs are explained in more detail at http://www.experian.co.uk/crain/index.html. CRAIN is also accessible from each of the three CRAs – clicking on any of these three links will also take you to the same CRAIN document: Callcredit https://www.callcredit.co.uk/crain; Equifaxhttps://www.equifax.co.uk/crain.html; Experian http://www.experian.co.uk/crain/index.html.
Before we provide services, goods or financing to you, we undertake checks for the purposes of preventing fraud and money laundering, and to verify your identity. These checks require us to process your information. If we, or a fraud prevention agency, determine that you pose a fraud or money laundering risk, we may refuse to provide the services and financing you have requested or we may stop providing existing services to you. A record of any fraud or money laundering risk will be retained by the fraud prevention agencies, and may result in others refusing to provide services, financing or employment to you. If you have any questions about this, please contact us on the details above.
Please telephone us on 0844 415 6500 if you would like details of the credit reference and fraud prevention agencies from whom we obtain and to whom we pass information about you. You have a legal right to these details.
USE BY THIRD PARTIES
We disclose your information to the following third parties:
Your broker, who assists us with administering your application.
The funder(s) of the proposed facility to you. Funders receive personal information that is necessary for them to undertake ‘Know Your Client’ checks, as such we will provide them with the information on your application form and the results of the checks that we carry out. The funder will also receive further information during the course of our relationship with you, where this is necessary to the funding provided to you.
As applicable, our associated companies who will process personal information in accordance with this Privacy Policy.
Any security party named in the security documents (and its legal advisers) where this is relevant to the facility taken by you/ our corporate customer so that the security party can obtain separate independent legal advice.
Where you are located outside of the UK, we will appoint a solicitor in your local jurisdiction to provide us with advice in relation to your circumstances according to the laws of the relevant jurisdiction.
Credit reference agencies and fraud prevention agencies. Please see ‘Use by credit reference and fraud prevention agencies’ above for further information about these agencies and what they do.
Third party suppliers engaged by us to undertake certain services, including debt collecting agencies to recover monies owed to us and fine administration. These third parties will also be controllers of your information and are solely responsible for protecting your personal data and processing it in line with data protection laws.
Third parties acting on our behalf, such as back-up and server hosting providers, IT software and maintenance providers and their agents, and third parties that provide customer support services, claims handling services, income verification services, affordability checks, communication fulfilment services and market research agencies.
Law enforcement agencies in order to detect, investigate and prevent crime (we or any fraud prevention agency may pass your information to law enforcement agencies).
Courts in the United Kingdom or abroad as necessary to comply with a legal requirement, for the administration of justice, to protect vital interests and to protect the security or integrity of our business operations.
Any third party who is restructuring, selling or acquiring some or all of our business or assets or otherwise in the event of a merger, re-organisation or similar event, including where we transfer your agreement to a third party.
Any third party to whom we sell your debt. If we do this, you will be notified and that third party will become the data controller of your information.
Our professional advisors, auditors and regulators as necessary.
WHERE WE STORE YOUR INFORMATION/ TRANSFERS TO THIRD COUNTRIES
We store your information on servers located in the United Kingdom.
The third parties listed under ‘Use by third parties’ may be located outside of the UK or the EEA or they may transfer your information outside of the UK or EEA. Those countries may not have the same standards of data protection and privacy laws as in the UK. Whenever we transfer your information outside of the UK, we ensure that your personal data is protected to the standard required under applicable data protection laws, including imposing contractual obligations on the recipients of your information or requiring the recipient to subscribe to ‘international frameworks’ intended to enable secure data sharing. Any third parties transferring your information outside of the UK or EEA must also have in place appropriate safeguards as required under applicable data protection laws.
RETENTION OF YOUR INFORMATION
If we decline your application or if we accept your application but you do not/ the corporate customer does not proceed with the facility, we keep your information for 12 months or as long as necessary to deal with any queries you may have and/or to comply with our legal obligations. If your application is accepted and you proceed, we hold your information for 6 years from the date at which your agreement ends or as long as necessary thereafter to deal with any queries you may have or to comply with our legal obligations.
Credit reference agencies will retain the account information we give to them for 6 years after your account is closed (please see ‘Use by credit reference and fraud prevention agencies’ for more information about the information that we give to them).
Fraud prevention agencies can hold your information for different periods of time, and if you are considered to pose a fraud or money laundering risk, your information can be held for up to 6 years.
We may hold your information for a longer or shorter period from that described above where:
the law requires us to hold your personal information for a longer period, or delete it sooner;
you exercise your right to have the information erased (where it applies) and we do not need to hold it in connection with any of the reasons permitted or required under the law; and
in limited cases, the law permits us to keep your personal information indefinitely provided we put certain protections in place.
YOUR RIGHTS
You have a number of rights in relation to your personal information under data protection laws. In relation to certain rights, we may ask you for information to confirm your identity and, where applicable, to help us to search for your personal information. Except in rare cases, we will respond to you within one month after we have received this information or, where this is not required, after we have received your request.
If you would like to exercise any of your rights, please contact us using the details below under ‘Contacting us’.
Your rights are as follows:
To be informed about the processing of your information.This is what this Privacy Policy sets out to do.
Accessing your personal information.You have the right to ask for a copy of the information that we hold about you. We may not provide you with a copy of your personal information if this concerns other individuals or we have another lawful reason to withhold that information.
Correcting and updating your personal information.The accuracy of your information is important to us. If you change any of your details, or you discover that any of the other information we hold about you is inaccurate or out of date, please let us know. We encourage you to keep us up to date in changes in your information to keep it safe and to keep your credit file up to date and consistent as it could affect other lender’s assessments of any applications you make.
Withdrawing your consent.Where we rely on your consent as the legal basis for processing your personal information, as set out under ‘Use of your information’, you may withdraw your consent at any time. If you would like to opt out of direct marketing from us, please follow the unsubscribe instructions in the relevant marketing communication. If you withdraw your consent, our use of your personal information before you withdraw is still lawful.
Objecting to our use of your personal information.Where we rely on our legitimate interests as the legal basis for processing your personal information for any purposes, as set out under ‘Use of your information’, you may object to us using your personal information for these purposes. Except for the purposes for which we are sure we can continue to process your personal information, we will temporarily stop processing your personal information in line with your objection until we have investigated the matter. If we agree that your objection is justified in accordance with your rights under data protection laws, we will permanently stop using your data for those purposes. Otherwise we will provide you with our justification as to why we need to continue using your data for our legitimate interests. You may object to us using your personal information for direct marketing purposes and we will automatically comply with your request. If you would like to do so, please use our unsubscribe tool, if applicable.
Objecting to automated decisions made about you.You may contest a decision made about you based on automated processing.
Erasing your personal information or restricting its processing. In certain circumstances, you may ask for your personal information to be removed from our systems. Provided we do not have any continuing lawful reason to continue processing or holding your personal information, we will make reasonable efforts to comply with your request. You may also ask us to restrict processing your personal information where you believe it is unlawful for us to do so, you have objected to its use and our investigation is pending or you require us to keep it in connection with legal proceedings. We may only process your personal information whilst its processing is restricted if we have your consent or are legally permitted to do so, for example for storage purposes, to protect the rights of another individual or company or in connection with legal proceedings.
Transferring your personal information in a structured data file.Where we rely on your consent as the legal basis for processing your personal information or need to process it in connection with a contract with have with you, you may ask us to provide you with a copy of that information in a structured data file. We will provide this to you electronically in a structured, commonly used and machine readable form, such as a CSV file.
You can ask us to send your personal information directly to another service provider, and we will do so if this is technically possible. We may not provide you with a copy of your personal information if this concerns other individuals or we have another lawful reason to withhold that information.
You have the right to complain to the Information Commissioner’s Office (“ICO”) if you are concerned about the way we have processed your personal information. Please visit the ICO’s website for further details.
CHANGES TO THIS PRIVACY POLICY
Please note that this Privacy Policy will be reviewed, and may change, from time to time. If necessary, we may notify you via email or post with our updated Privacy Policy.
CONTACTING US
If you have any questions about this Privacy Policy or the way in which we use your personal information, or if you would like to exercise any of your rights set out above, please contact us using any of the following details:
Email: Data Protection Officer, info@propertyfinancedirect.co.uk with the subject heading ‘Data Protection’
Post: FAO: Data Protection Officer, Property Finance Direct Limited, ........ , ........ ,
Phone: 0844 415 ...
List of associated companies:
Seek4 Ltd (Company number 14870251)
Complaints
The following complaints procedure is made available to every client upon request, will be supplied upon receipt of a complaint and is published on the company’s website.
We strive to ensure that there should be no time that you should have any cause for complaint in relation to the service we provide to you. In the unlikely event that you wish to raise a complaint or have any other concerns with regard to any service we have provided you may submit a formal complaint. This procedure sets out the process which should be followed.
1. Complaints may be made in writing, by e-mail, by telephone. You should address your complaint to The Complaints Department at:
Property Finance Direct
...........
............
Alternatively Contact Us at: hello@propertyfinancedirect.co.uk
2. We will send you a written or electronic acknowledgement of a complaint within two business days of receipt, identifying the person who will be handling the complaint for the business together with a copy of this complaints handling procedure. Wherever possible, that person will not have been directly involved in the matter which is the subject of the complaint, and will have authority to settle the complaint.
3. Within eight weeks of receiving a complaint we will send you either:
a) a final response which adequately addresses the complaint (including contact details for The Financial Ombudsman should you wish to make a complaint to them); or
b) a response which:
i explains why we are still not in a position to make a final response, giving reasons for the further delay and indicating when we expect to be able to provide a final response;
ii Informs you that you may refer the handling of the complaint to The Financial Ombudsman if you are dissatisfied with the response, the timeframe for doing so and full contact details.
4. Where we decide that redress is appropriate, we will provide you with fair compensation for any acts or omissions for which we are responsible and will comply with any offer of redress which you accept. Appropriate redress will not always involve financial redress.
Disclaimer
Figures represented by the loan estimation calculator should be used for guidance purposes, your actual rate will vary based on your individual circumstances.
To obtain an accurate rate based on your needs and circumstance then simply fill out the application form at the top of this page or alternatively contact an advisor direct by calling: 0161 710 2006.
Disclaimer
Property Finance Direct is a trading style of Seek4 Ltd which is an appointed representative of Commercial Finance Brokers UK Limited which is authorised and regulated by the Financial Conduct Authority (FRN 736199) for the purpose of consumer credit business. Commercial Finance Brokers UK Limited is registered in England & Wales under company registration number 06353973. We are a credit broker, not a lender. We work with the whole of market and may earn a commission from the lenders, this amount varies between lenders.
Development Loan Lending Criteria
In order to submit a development loan application for a deal in principle please adhere to our required loan stipulations, if your request falls outside of these guidelines we will not be able to process your request
Your Quote
Please note that all quotes are indicative, figures represented by the loan estimation calculator should be used for guidance purposes, your actual rate will vary based on your individual circumstances.
Minimum / Maximum Total Facility
The minimum total facility we will look to provide quotes on can not be less than £50,000. We can assist quote applications up to £10M
Interest Rate
Interest rates provided vary with the minimum achievable rates from 0.45% based on criteria and we would never facilitate offerings of over 1.50%. In such instances where you believe your case application may warrant this based on asset value and level of charge then we can assist in applications directly with fund providers on your request.
Gross LTV
The maximum LTV at this present time that we can be accepted by our partners when we are looking to broker a loan is 85% should your request be higher then it is likely to need specialist underwriting from our partners which is likely to affect the timescales with regards to receiving loan offers.
Maximum LTC
The maximum LTGDV that we can assist with is 90% and we can not process requests that exceed this and we would recommend that you seek 100% funding and JV partnering alternatives.
Maximum LTGDV
The maximum LTGDV that we can accept is 75% we can help with cases that exceed this however the time to receive offers is likely to be longer.
Bridging Loan Lending Criteria
In order to compare funding solutions to retrieve deals in principle please adhear to our required loan stipulations, if your request falls outside of these guidelines we will not be able to process your request.
Your Quote
Please note that all quotes are indicative, figures represented by the loan estimation calculator should be used for guidance purposes, your actual rate will vary based on your individual circumstances.
Minimum / Maximum Total Facility
The minimum total facility we will look to provide a deal on can not be less than £50,000. We will not consider applications for a total facility which is higher than £10M
Gross LTV
The maximum LTV that we can provide quick quotes on is 90% should your request be higher than this then we will not be able to process your application online and will likely need to provide additional information to our loan providers in order to secure terms.
Maximum LTC
The maximum LTGDV that we can accept is 85% we can provide quick quotes on loan requests requests that exceed this.
Maximum LTGDV
The maximum LTGDV that we can accept is 80% we can provide quick quotes on loan requests requests that exceed this.
Bridging Loan Rate
Please note that the original rate provided by any of our calculator is not a guarantee this quote is indicative and to be used fo guidance purposes only.
Your Quote
Please note that all quotes are indicative, subject to minor changes and do not guarantee the quoted figures.
Adjusting The Rate
You can adjust the rate in order to satisfy your needs however there is no guarantee that we will be able to meet your desired rate.
Minimum rate
The minimum that property Finance Direct will be able to adjust a deal with our lenders can be as low as 0.45%, however in order to obtain the best quote you are advised to be as open as possible during the online quote and any subsequent questions we ask in order to support receiving terms as quickly as possible.
Maximum Rate
The maximum interest rate that Property Finance Direct will provide quick quotes on is 1.5%. If we cannot make the deal work at this rate then we will not be able to take the application forward.