Property Development Finance

Property Development Finance is tailored for property developers, investors, and landlords to fund residential, commercial, or mixed-use development projects. It encompasses a range of financial products like term loans, mortgages, bridging loans, and more.
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Check your eligibility for property development finance with our online form without affecting your credit score.

Loan Example:

(Project Cost: £1,000,000)

Loan Amount

£700,000 (70% of cost)


18 months

Interest Rate

from 10% APR

Total Repayable


*This loan example is for illustrative purposes only and is designed to provide a general idea of potential loan terms. Property Development Finance often involves complex and variable factors, including but not limited to, the nature of the project, construction costs, and the security offered. The actual terms of your loan, including the interest rate and total repayable amount, may differ and will be subject to your project specifics, status, and income. Click here to check your eligibility to receive options tailored to your circumstances.

How It Works

This type of finance is used for significant building or renovation works, from new residential housing projects to commercial workspace development. It's particularly suitable for ground-up developments, like constructing a property from scratch.

Types of Development Finance

The spectrum includes options such as light refurbishment loans, heavy refurbishment loans, and ground-up development finance. The choice depends on the project's scale, duration, and cost.

Eligibility and Application

Suitable for both experienced developers and newcomers. Lenders will look at factors like your investment strategy, credit score, and detailed business plan. First-time developers should be particularly aware of lender expectations and market research.

Loan Amounts and Terms

Development finance typically covers a significant portion of the build cost, usually around 70-80%, requiring the developer to source the remaining funds. For larger projects, the funding can be substantial, often in the millions.

Advantages and Considerations

This finance option enables developers to undertake large-scale projects without the full upfront capital. However, it requires careful planning and a clear understanding of the property market and development processes.

Interest Rates and Repayment

Interest rates vary based on the project's risk profile and the lender. Repayment terms are often aligned with the project's completion stages and can be structured in a way that fits the development timeline.


Developers use these funds for acquiring land, covering construction costs, and other expenses related to property development. The finance is typically released in stages, corresponding with different phases of the project.

Combining with Other Finance Types

Property Development Finance can be combined with other types of lending, like bridging loans for short-term needs or commercial mortgages for long-term financing post-completion.

Navigating the Market

The lending market for property development is diverse, with options ranging from high street banks to specialist lenders. Developers should consider their project's specifics and seek appropriate financing that aligns with their development goals and risk appetite.

Frequently asked questions

What is property development finance?

Property development finance is a type of funding specifically for property developers and investors to finance residential, commercial, or mixed-use property development projects, including new builds, renovations, and conversions.

Who is eligible for property development finance?

This finance is available to experienced property developers, builders, and sometimes first-time developers in the UK, provided they present a viable project plan and have relevant property development or investment experience.

What can property development finance be used for?

It can be used for a range of development projects, including purchasing land, funding construction costs, refurbishing existing buildings, or undertaking large-scale development projects.

How much can I borrow with property development finance?

Typically, lenders offer up to 70-80% of the total development cost, including both the purchase price of the land and the construction costs. For experienced developers with strong proposals, higher percentages may be available.

What are the typical interest rates for property development finance?

Interest rates vary based on the project’s risk, scale, duration, and the developer’s experience. Rates are typically higher than standard commercial mortgages due to the increased risk associated with development projects.

What is the usual duration for property development finance?

The loan term usually aligns with the duration of the development project, often ranging from 12 to 36 months.

What collateral is required for this type of finance?

The loan is usually secured against the development site or property itself. Additional security may be required depending on the loan-to-value ratio and the developer’s financial standing.

Are there any additional fees involved?

Apart from interest rates, there may be arrangement fees, exit fees, valuation fees, and legal costs associated with property development finance.

What is the process for obtaining property development finance?

The application process involves presenting a detailed development plan, including cost estimates, projected timelines, planning permissions, and expected revenue. Lenders will also assess the developer’s experience and financial standing.

Can I get property development finance for a joint venture project?

Yes, lenders often provide finance for joint ventures, but the terms might vary based on the structure of the joint venture and the credentials of all parties involved.

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