Getting 100% Real Estate renovation mortgages is widely regarded as being one of the more specialised finance products and popular. It is possible to find a property development lender who will help, but they do have some important borrowing criteria which must be met.

The project must demonstrate a considerable profit. It does not matter if it is a renovation or development scheme, but either way the developed value will need to show at least 25% return on investment. For a simple estimation simply add together the purchase price and development (or refurbishment) costs then multiply by 1.25 Therefore if a site costs 200,000 and the total build costs are 33,000 the total costs are 233,000. The developed value would then need to be at least 295,000. although this is a very rough estimation but it does give a good starting point.

Although it is very common for a property developer to have all their capital tied up in existing projects, there are plenty of other good reasons why they may be asking for 100% Real Estate mortgages. A property development lender will be keen to investigate these reasons. If a customer has little experience it does not necessarily create too many problems raising finance, but a lack of support will.

As they complete more projects a property developer will assemble a team of helpers to back them up, this will consist of suppliers, trades people and specialists such as architects, quantity surveyors and solicitors. This team becomes an asset and a experienced team can go a long way towards impressing a property development lender.

Some specialist property development lenders will work with banks to provide "top-up" borrowing. The result is 100% renovation funding, but from two difference sources. However there are also some property development lenders who will lend all the funds. Either way 100% property development finance can be a very specialised form of lending and using a specialist mortgage broker can make all the difference.