FAQs

How does it work?

Frequently asked questions

Your interest rate looks high to me
Our total cost isn’t higher – if you look at the comparison page our total cost is a lot lower than a traditional lender

Why don’t you need to charge these fee’s?
We have over 20 years of experience being builders and developers ourselves we know when a development add’s up. We know how much it costs to build and research on the internet using house sales data and for sale prices allow us to quickly verify your numbers without paying someone else to do it.

What will the level of Build It Finance be in our project?
All projects are different, if you have a low loan to value we won’t need regular meetings, if it’s a higher loan to value we’ll meet once a month to agree and check what’s been done before we release additional funds

I don’t need all the money on day 1, can I draw down in stage payments?
Yes, we have had this problem before, if you don’t need all the money at the start of the project only borrow what you need. This means you aren’t paying interest on money you’re not using. We allow stage payments but ask that they are in multiples of £10,000 and request 5 days notice to make sure it arrives in your account when you need it.

Can you give me other help on my project?
Yes, we have been where you are. We can help you by answering questions and sharing our experience. We will however only lend to people with strong project plan.

Security & guarantees.

What assets do you take as security?
All assets will be considered though property is our preference.

Will you consider my personal house as security?
Yes we take a second charge on this if you already have a mortgage on it, if not we will take a 1st charge

Will a personal guarantee be taken?
Yes all company directors will have to sign a personal guarantee in all but exceptional circumstances

Why do you do this?
We think the UK finance system is skewed in favour of people in sharp suits who own big salaries with no moral’s. We thought we could do it better.

Is there any small print?
We charge a meeting fee of £500 before generating a final offer to make sure we are only working with people who are serious about proceeding. Like yourself our time is valuable and we only want to work on projects that progress to loan stage. Remember we only make money when you do!

Broker fee’s

How does my finance broker get paid?
The broker is paid by us from our your interest charges, they only get their money when you get yours.

Do you do repeat loans?
Yes, part of our business model is not to take too much money from the builder/developer allowing our customers to grow and come back to us in future years.

How long does the process take?
It can take as little as 7 days for solicitors to be instructed. After that it is really dependant on how quick your solicitor is.

Is there a minimum term?
Yes 3 months but you can move finance between projects at no penalty.

Can I refinance without penalty?
Yes aside from the minimum term.

Do you get your money first from property sales
We reserve the right to be repaid first but we will always consider being paid at a later stage if there is enough equity behind the loan. This allows you to move onto your next development before your previous development has sold (a common problem for new developers).

Glossary

  • GDV – Gross development value – How much you will sell the completed properties for
  • Rolling up – Deferring interest until the end of a project
  • Equity – The amount of net assets supporting a scheme
  • FMB – Federation of Master Builders