Next Route Finance

07/08/2025

The Monetary Policy Committee voted by a majority of 5-4 to cut interest rates to 4%.

Find out more in our https://b-o-e.uk/mpr-aug-2025

30/10/2024

So many people think a property DEVELOPMENT FINANCE LOAN is the same as a BRIDGE?

In short, it’s not.

It’s more complex and can therefore lead to overspending if you’re not properly informed!

Development finance is paid out in STAGES - it can help towards the purchase and 100% build costs (in arrears) whereas bridging finance is a straight loan.

Here’s our tips & tricks for seeking the best terms…

24/09/2024

Is there such a thing as MAX capacity?

Property developers are regularly putting in more offers than they could physically cope with (if they were all accepted).

So, when is this capacity reached:

🤔 Perhaps when your A+L is weak?
🤔 Liquidity issues?
🤔 If you've structured the funding incorrectly?

We’re always dubious of developers growing TOO quickly!

But experienced developers need to learn how to take on MULTIPLE projects at a time.

This can easily be done WITHOUT being ‘over-leveraged’

It's often just lack of knowledge on how the funding really works…

We share various tips & insights in our weekly newsletter if you want to increase your knowledge and learn more - here’s the link: tinyurl.com/yt285pun

Never let a case of LACK OF FUNDS be your roadblock 🚧

*There's always another route.

06/08/2024

💰 SAVE THOUSANDS of pounds on your next property development project!

How?

We often receive new enquiries from developers seeking a SECOND OPINION from us.

Why?

Because there comes a time when developers will ‘OUTGROW’ their current broker.

Perhaps these brokers are residential mortgage brokers or deal with bridging on the lower loan amounts or focus on the BRR model? They are often not niche in what we specifically do…

We ONLY arrange bridging & development finance EXCLUSIVELY for property developers and housebuilders 🏘️

👉🏼 Projects > £500K, where the conversion project or new build scheme requires drawdown payments

👉🏼 The cost of works equate to > 50% of the purchase price

👉🏼 The overall structure needs to be reviewed looking at the blended rate

👉🏼 More funding is required over the senior loan amount

👉🏼 A larger day 1 amount is required to reduce the deposit amount and increase the developer’s overall return on their own equity input

👉🏼 The list goes on…

The more niche or specialist someone is in a subject matter, the better placed they are to solve problems.

So choose a broker that SPECIALISES in what you need because they could save you money 🥳

03/05/2024

When you hear your finance broker say “whole of market”, you may be thinking quite literally…

It’s the WHOLE market - EVERY available lender & ALL their products and services.

Not exactly! It can be misleading 🤨

The term appears to have originated years ago from the regulated market so when you’re buying or remortgaging your own home for example, then you may have heard your residential mortgage broker say they have access to ‘whole of market’.

What that actually means...

The broker has access to a ‘well rounded representation of the market’ so you may get a broker who uses a limited number of lenders but as long as they have say one with the LOWEST cost of funds on the market through to one which has the HIGHEST, they can still proudly say they have access to 'Whole of Market' 🏛️

Our motto is always to be as transparent as we can which is why we share information like this to educate people on what really happens behind the scenes in the finance world!

*Another reason we love specialists over generalist but that’s a different post*

By sticking to our niche, we always have an update on the FULL ‘whole’ market position... who’s lending, their funding appetite and the current cost of funds etc.

To perform OUR version of ‘searching the market’, we have developed our own internal system by essentially staying in touch with our lenders across the full range from the high streets (cheapest money) to our alternative lenders (more bespoke, higher cost of funds but better leverage).

As a secondary check, we now also use a third party ‘sourcing system’ which has been newly developed for the unregulated space of bridging and property development finance which includes, at the moment, over 80 lenders noted as ‘whole of market’.

If you’re a developer who wants to stay in the loop about the current lending market, you're in luck! We now offer a FREE monthly PDF detailing these insights just let us know if you want a copy and we’ll send it across 📝

15/01/2024

One of our company goals for 2024 is to help more property developers and housebuilders 'LEVEL UP' 📈

🌐 Given the governments aim to build 300,000 homes a year, you would think this ties in nicely with the National Planning Policy Framework (NPPF)…

However it looks the housing secretary, Michael Gove will now be 'relaxing' the housing targets for local authorities in England which could mean far fewer homes being built amid a housing crisis.

No surprise developers are worried with this news 😧

In summary, it looks like the plans will:

🏠 give councils far more freedom to set lower housing targets (the targets would become advisory rather than binding) and

🏠 allow authorities to allocate less land to future development if local officials can argue that more development would damage the character of an area or require building on greenbelt land

Many developers think obtaining funding is a problem - that’s a walk in the park compared to planning!

Could this see housebuilding collapse in some areas?

📰 Article: https://www.ft.com/content/1f0adb36-612d-4a34-bb0f-1643a841c417

UK levelling up secretary says local authorities will be given three months to deliver property plans or face losing planning powers

18/08/2022

Not sure if is still a thing but it is today 🤪 *Better with the SOUND ON this one 🔊

Finding a good networking event SPECIFICALLY for property developers (and their wider circle) down in the Devon can be struggle city sometimes!

So when we kindly got asked to sponsor and attend The Property Development Forum

We said “hell yeah” 👏🏼🥰

Tickets still available for this evening if you interested in - ‘place to network, learn and create opportunities’

🎥 Here’s our take 👀