Property developers discover alternative funding options

It is all too apparent that mortgages and other financial solutions have become much harder to find in the wake of the credit crunch affecting the UK. Recent press and media reports paint a gloomy picture of the property market in freefall, but in reality is the situation really as bad as it seems?

Whilst the banks and mainstream lenders have certainly put the brakes on the kind of lending we have all become accustomed to, there is actually still a vast amount of cash out there and some may be surprised that flexible finance facilities from other sources remain very readily available. One particular source that has recently caught the attention of property developers and investors is the independent commercial finance broker Galapark Ltd (galapark-finance.co.uk). The company are specialists in sourcing cash from hedge funds, trusts and wealthy individuals and are still able to offer funding of up to 100% of property/build costs.

In recent weeks the finger of blame for the credit crunch has been firmly pointed at the banks themselves. It is now the view of many analysts that the real cause of the financial squeeze is the fact that the banks have been either greedy, or incompetent, or have allowed themselves to be conned. Incredibly no law suits have started and no heads have rolled in the midst of this bizarre financial crisis and the truth could well lie in the fact that the banks are afraid that the full extent of their foolishness will be revealed. The result is that the banks are hoping they can just sit it out, whilst the UK economy, manufacturing industry and the property market in particular are forced to wait in limbo until they finally manage to rectify the situation.

Contrary to recent press reports, the fundamentals of the market are still strong - low unemployment, a shortage of housing and, low interest rates - if only the banks would follow the Bank of England's lead. Indeed there are many areas in the UK where demand for property remains as strong as ever with developers continuing to cater for home buyers and landlords providing homes for rent. Another factor is that as first time buyers now find it more difficult to get a mortgage, rental rates and therefore rental incomes have shown an increase across the UK.

London based Galapark are able to offer a range of versatile funding options including investment, development and business finance as well as bridging loans.

In the current economic climate it is essential that developers obtain optimum funding for projects. The range of solutions now accessible through Galapark allows developers and investors to continue to prosper in the marketplace and with the minimum of hassle.

For further information on Galapark and the services it provides visit galapark-finance.co.uk.