Mike Collins Mortgage Expert, an independent financial specialist, is often asked about funding property renovations and new builds. Mike has 17 years experience in the field and can offer his advice to anyone trying to get a large-scale project started or to rent out a property.

He explained that Property finance can be used as an umbrella term to describe a variety of funding options. These include bridging loans or property-development loans.


There is a wide range of funding options for residential, mixed-use, and commercial projects.


Mike Collins shares his advice about how to fund your project.

Choose the right finance option to suit your project

If property developers are looking for large tracts of land to buy or house buyers want to begin renovations, they may need financing. This may be in the form short-term, high interest loans.

However, eligibility criteria may vary and depend on the strength of your business plan and how your personal credit rating.

Bridging loans

This type loan can be used to fasten cash short-term. It can be very useful if you don’t want your dream house to disappear but haven’t sold your home. Perhaps you are looking for immediate cash to purchase an estate at auction.


The financing can be used for a light renovation of your existing property such as decorating, plastering and a new boiler.


This is a great option for those who need cash quickly. It can provide money within as little as three working days. However, the interest rates are more costly than other financing products, but they can be easily afforded due to their short-term nature.


A bridging Loan is credit you for a brief period, until your property can be sold. Then you will have the money to repay the loan.


Loans for property development

A property loan is typically paid over several stages of a larger development. It is often paid in blocks like this:

  • The purchase price of a development lot is usually the first payment. It could either buy land for new properties or help to fund an existing property in dire need of renovation.
  • The second component of the loan is used as a payment for construction work costs. It can also be given in stages (called staged drawdown).


The loan is pre-approved and repaid either through mortgage finance, or by the selling of the property.


Buy-to – Let Mortgage

This mortgage can be applied for if you plan to purchase a house, then rent it out. Pay attention to the terms of subletting and renting.

Lenders will often ask for a deposit of between 25% and 40%, unlike a residential loan. Higher fees may apply and some mortgages offer interest-only.

Personal loan

Unsecured loans are also known as unsecured loans. This type is not secured against property or other assets. You can use them to get a loan quickly and buy large assets such a property.

You can choose to make monthly fixed payments. The best option is to pay the loan off in full at the end of the term.


Cash is the easiest method to finance property developments. It is always beneficial to have cash as it will help you avoid loans and high interest rates. For future debt avoidance, make sure you have enough cash to deposit.