Modular Housing Finance
Lending Options for Modular Construction
THE FINANCE BUSINESS SPECIALISE IN MODULAR CONSTRUCTION FINANCE, BRIDGING LOANS, PROPERTY DEVELOPMENT FINANCE & COMMERCIAL MORTGAGES
Modular Construction Loans are used to buy a building or land and have the finance spread out over a much longer period than say a bridging or development loan.
Unlike bridging loans or development finance which only come with 12 month or 18 month loan terms, Modular Housing Loans can be taken over 30 years, much like a traditional mortgage you would get from the high street.
Modular buildings are becoming more common in the UK. For lots of people, the first they heard about such construction techniques was on the TV show Grand Designs way back in 2003, where the self builders were importing a prefab (pre-fabricated) house from German manufacturers Huf Haus.
Whilst many people were sceptical about this type of build, it has proved to be a winner and in fact, the UK is the 2nd biggest Huf Hause market in the world, such is their appeal, due in no small part to the comparatively cheaper construction costs and build time.
As a Modular Construction Loan will be used for a property (in most cases) that the borrowers/self builders will live in, it will also be priced accordingly and very differently to bridging loans or property development finance, both of which are expensive compared to Modular Construction Loans.
If you are unsure of some of the industry words we use, you can look at our glossary of terms.
We are the ‘goto’ finance broker for property professionals throughout the UK looking to fund residential, commercial & industrial property.
Our Modular Construction Loans Summary:
NO BROKER FEES. NO UPFRONT FEES
Heads of Terms from Mortgage Lenders produced the same day you apply
Modular Construction Mortgages from £100,000 to £10m
interest rates from just 3.99% per annum
Loans available on residential, commercial and industrial properties
We can also fund farms, farmland, agricultural land in England, Wales and Scotland
Industrial units and industrial estates in England, Scotland and Wales
Land with or without planning
Modular Construction Mortgages and Loans up to 70% LTV…NET
Interest can be rolled up (paid at the end when you sell or refinance the property), deducted from the initial loan or serviced (paid monthly)
Joint Venture (JV) finance
100% of purchase price
Loan terms from 3 months to 5 years
Portfolio bridging available if you have a number of properties that need refinancing
Bespoke, speedy service for large Modular Construction Loans above £1m
Apply For A Modular Construction Bridging Loan Today
Frequently Asked Questions
What is Modular Housing?
Modular Construction Mortgages and Loans are a type of funding that allows you to build a property much much quicker than traditional housing techniques.
It also allows you to bespoke design your home because the structure is being built off site and can accommodate most borrower requirements.
The actual build itself is also a lot cheaper than a traditional brick or stone built property and in most cases, can be on site and in place in just 3 days.
Also, a Modular Construction Loan is based on the asset, in this case, the structure, or ‘kit’ as it sometimes known.
There are over 300 different bridging lenders in the UK (yes, 300!)…Some are major financial institutions like banks and some are specialist lenders you may have heard of like Aldermore or Shawbrook and not all of them will offer you finance for your modular housing project.
In fact, there are no standout modular housing lenders in the UK at all so it is a question of searching the market.
However, there are literally hundreds of smaller, alternative finance lenders who generally take more risks than the big banks and this allows them to lend against unusual or unmortgagable assets such as prefab or modular housing.
It could be buying a house at auction. It may be buying another property before you have sold your existing one or it may even be because you want to buy a piece of land that doesn’t currently have planning permission.
Whatever the reason, a modular housing bridging loan can be quick and relatively simple to apply for. As most lenders are looking at the value of the security (land or property) and not you, it enables them to lend money quickly and with little fuss.
How much can I borrow with a modular housing bridging loan?
You can borrow anything from £100,000 right up to £10m usually. Of course, some brokers will make out that you can borrow up to £50m but that usually only applies with development finance, not bridging and absolutely not with a modular housing mortgage or loan.
Do banks offer modular construction bridging loans?
If only! Everyone asks this question but the simple answer is no, they don’t. The usual excuse is that offering a bridging loan is riskier than offering a residential mortgage for example and we get that.
However, if you choose the borrower carefully, the quality of the asset or security is good and you do your usual lender due diligence, then there is absolutely no reason at all why banks and other high street lenders should’t offer bridging loans.
However, some major house builders are now delivering modular housing projects on a regular basis.
Are modular housing loans expensive?
Compared to a traditional mortgage then yes, they are.
But you have to remember…These are risky products for lenders. Yes, if it goes well then both the borrower and the lender can earn a LOT OF MONEY. However, if they get the deal wrong then both the lender and borrower could be in a lot of trouble.
Do you charge broker fees?
Nope. We are professional mortgage brokers. We know and understand bridging finance, modular construction finance, commercial mortgages and development finance inside out.
So if you want to work with us, you are serious then all is good and we will not charge a broker fee.
Simples.
