borrowing for property development

Building loans for construction for UK builders

How borrowing for property development works

How Our Bridging Loans and Development Finance Work

We work with a range of lenders across the UK, to search for and offer flexible short-term development finance or bridging finance solutions to suit a variety of building projects. With experience in bridging loans and property development finance, our fast funding process makes it possible for you to overcome financial obstacles in order to secure or complete a project deadline.

Our services help many different kinds of people and organisations – from builders and property developers , to private individuals and families who simply want to purchase homes or extend and or even build dream houses from scratch.

Whatever your goal, we are here to help get you the  lending you need to make your project a reality.

Applying for Development Finance or Bridging loans

We make it easy for you to apply,

  1. Call us on 0800 246 5698  ( 9am- 5pm)  or email us with the outline of your project.
  2. We will assess the project and determine best lender / rates
  3. we will present you with indicative terms
  4. If above OK – then we can APPLY for the finance

When speaking to us about your project, here a handy guide to what we will need to know;

  • Your Details/ if finance is in personal names or Ltd Co / SPV
  • Intended development  eg 2 storey house extension, or   site for 18 new build houses
  • Site address
  • Has planning permission been granted ? / if not what stage are you at?
  • How much finance you need?  eg  £750k
  • How long you need the finance for ?  eg 12 months
  • What the final value of the property(s)  will be worth – eg £1million

So a simple call or email to kick it off !  – The rest we can gather as we go along.

Construction Loan: £100k - £2m

(upto £10m funding available for experienced / previous clients with proven track record)

If you’ve got a building project that you want to get off the ground, we want to hear about it. 

Our team will take the time to understand your story and find a competitive solution that is tailored to your needs. Whether your development project is residential, a care home, student accommodation, office or mixed use, we will work with you to try to make it happen.

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Builders loan for construction

We have lenders that will fund

  • Residential ( houses ) property development finance to 100% of the build costs from 1 house to 50 unit sites.
  • Experienced builders at record low rates
  • New house builders starting out – with smaller sites
  • Industrial / warehousing facilities
  • Office blocks / retail parks
  • Office to residential conversions

It’s EASY to get started

  • FREE Initial enquiry and obligation-free consultation
  • FREE Comparison of deals from specialist UK lenders

Lending In More detail
We will provide up to 60% of the initial land purchase value and 100% OF THE DEVELOPMENT COSTS (INCLUDING FEES) and roll up the interest provided that the total Facility does not exceed 70% of the GDV estimated end value.

Higher L.T.V. if further security is available.

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Get Your Free quote

One simple enquiry and we check all available lenders for you!

Building loan for construction

From enquiry to completion, we’re here to help you through the borrowing process. Over the years, we’ve refined and perfected our application process to provide you with a seamless and intuitive experience. ONE simple enquiry and we will check your project and offer you a lender that WILL offer  to fund 100% of the build costs.

We take a very hands-on approach to our residential development finance. We like to meet clients face-to-face, and to visit the development site to see its potential for ourselves. We study the plans, and research the local market.

100 Percent Property Development Finance loans are short-term funding loans, used to develop either an existing building, i.e. refurbishment, conversion, or a new build. The property Development Loans are usually taken over a period of between 6-18 months. This really depends on the type of Development; with a light refurbishment it could be as little as 3 months, and with a larger scheme up to 18 months

New Builder ? Impaired credit ? Discharged Bankrupt?

New Builder ?  or previous Impaired credit history ?  perhaps even a bankruptcy in the past ? don’t worry we know the building trade isn’t always smooth sailing. We can arrange funding for all residential and commercial development projects even if you are a first time developer. Regardless of your experience level, credit history or development project, we can help.

If you have current or recent ccjs we can still look at getting you development finance. We can even get development finance for discharged bankrupts, just make sure you tell us all the bad credit information so we can source the development finance lender that will accept your credit history.

Discharged bankrupt – you can get development finance, we just have to declare everything upfront, and lets be honest you wont get 0.64% rates at the start, your rate swill be 1% + pcm  for the first few projects until you prove your track record.

First Time Developers With Little or No Experience

For Property Developers with little or no previous experience, we can still provide finance to get you up and running whilst most high street lenders will not entertain developers with no experience we have many other lenders who will look at the bigger picture, furthermore we are experts in dealing and packaging your loan application to give you the very best chance of getting finance for your first project, we work with all types of developer and have had many years of experience providing Development finance

Experienced Property Developer, Development Loans.

So what is an experienced Developer? Generally, you will have completed at least 4 to 5 projects and sold on for a profit. A builder or building contractor would not be considered a Property Developer, neither would someone who developed and kept the finished properties in a portfolio. The key is the selling. Also, there are many skill sets that a Developer has that a Builder would not possess. As always, experience and dealing with the many pitfalls that come with Property development, selling on, keeping a tight control over costs and not overdeveloping (something some builders do proudly). It is great having the best spec and design but will it add profit?

Margaret Curtis

Development Company

If you are looking for some awesome, knowledgeable people to work with, these are the guys I highly recommend. Their friendliness and result-driven approach are what I love about them.

Matthew Fox

Uk Builder

Down to earth, great advice and support. Really helped me get the project off the ground.

100% development property finance loans for builders

Bridging finance for development is used to build a new building or convert an existing building. This can be residential houses, shops, offices or industrial buildings. It can be for investment purposes or owner occupied. You can be an experienced developer / builder or a first-time developer: A builder by profession who has purchased land and wants a loan to build houses that he will build and sell on. The developer may or may not have built from scratch before.

The maximum you can borrow to purchase the site is anywhere between 50-60% of the purchase price depending on the project. The site would need to have full planning in place or can be agreed subject to planning.

Key Features of typical Development Loans

  • Loans from £100,000 upwards
  • No tie-ins. In most instances you can repay the loan without incurring any early repayment charges
  • No experience is required provided a building contractors contract has been provided
  • Funds are available in stage payments and interest charged only on the money drawn
  • Can use other properties as collateral
  • You are not liable to borrow the full agreed amount should your build go below budget/plan
  • With property development finance the valuations tend to be higher than standard valuations and take longer to perform.

 One can also borrow up to a 100% of the build cost provided that it is within 60% – 70% of Gross Development value (GDV) depending on the lender and experience (set on a case by case basis). Maximum term you can borrow for development finance is between 12- 36 months. Exit is usually sale of properties or refinancing.


Building loan for construction
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Advantages of 100% development finance loans

and how UK householders can get the finance they need

Scores on the doors !
£ 10000000

Main Development loan Finance Costs

What Costs to Expect on a Development Finance Loan?
This is dependent on the experience of the property developer. Rates can be as low as 4% pa and they can go as high as 20% pa for say an ex-bankrupt, so the range can be anywhere in between. Also, most lenders charge an arrangement fee of between 1-2% of the loan amount. Some Lenders also charge an exit fee, although not all. This is usually a percentage of the GDV (gross development value), and around 1% to 1.25% depending on the Development Loan period, i.e. 1% of gross development value for a 12-month loan 1.25 % of GDV for an 18-month loan.

What Are the Main Development Finance Costs?

Fees, charges and general borrowing costs vary significantly from one lender to the next. The following will apply in most instances as the primary costs of development finance:

Facility fee – More commonly referred to as an arrangement fee, the facility fee is calculated as a percentage of the total cost of the loan (gross or net).

Interest rate – Interest on a development finance loan can be charged on an annual or monthly basis. Annual interest rates of 7% are not uncommon, as are monthly interest rates of 1%. Longer-term facilities attach lower rates of interest, though cost more than those that are repaid quicker.

Exit fee – Sometimes called a completion fee, the exit fee is usually calculated as a percentage of the total cost of the loan (gross or net). Some lenders charge a percentage of the total value of the completed project – not the sum borrowed.

Broker fee – Most brokers charge typically 1%  to 1.75%  of the total value of the loan. If a fee is charged, you will be informed of this in our initial quotation.

These are just some of the primary costs to take into account when considering development finance. Working with an independent broker will help ensure you gain access to the best possible deal to suit both your requirements and your budget.

Other Development Finance Costs to Take Into Account

Additional development finance costs to take into account (which may or may not be applicable) include the following:

Valuation fees – It will usually be necessary for an initial valuation to be carried out by a neutral third party, in order to assess the open market value of the security. This will also typically include a projected valuation of the completed project.

Application fees – UK Property Finance does not charge application fees. Some lenders and brokers impose fees simply for submitting an initial application, or seeking advice on development finance.

Legal fees – If it becomes necessary to hire a solicitor or seek qualified legal advice, the applicant will be responsible for meeting all such costs accordingly.

Administration fees – This is a somewhat vague term, which can apply to almost any additional cost imposed by the lender. Some brokers also charge administration fees – UK Property Finance does not.

Monitoring fees – Development finance lenders will naturally need to monitor the progress of the project, in order to ensure it is reaching its predetermined goals. This is to make sure their investment is sound, and the funds allocated are being used as agreed. All monitoring fees are picked up by the borrower.

Draw down fees – Each time a new instalment of funds is transferred to the borrower, an additional fee known as a draw down fee may apply. This could be a set fee, or charged in accordance with the size of the instalment. 

Telegraphic Transfer fee (TT Fee) – This is a cost imposed by the banks handling the money transfers, which in the case of development finance can be comparatively large. Nevertheless, TT fees are generally quite small and charged at a fixed rate.


Discharged Bankrupt? development finance deals

Uk Development finance calculator

click here to go to the UK house builders development finance calculator for an instant guide as to how much you can borrow .

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Building construction loans uk

How a Construction Loan Works

Once the construction loan  is approved the lender will start paying out the agreed loan. These  cash payments are set against an agreed schedule known as drawdowns.

The number of draws are agreed up front between the lender and the applicant, typically the first draw would come from the applicant’s own share of the funds designated to the project.

What to expect from the Construction Loan Rate

As with all lending interest is charged on the amount of money borrowed. Typically Construction Loans are interest only loans, so you only repay the interest incurred on the loan and not the whole loan amount.