Business Loans
Property Development Finance

Compare Property Development Finance

If you need to fund construction, conversion or renovation then a property development loan may be the ideal option
Our comparison table below lists a panel of UK commercial lenders that offer property development loans
Compare loan terms and amounts currently available and apply direct today.

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Funding Circle Business Loans

Funding Circle, supporting small businesses for over 10 years
Offering Small Business Loans & Government’s Recovery Loan Scheme
4 out of 5 customers will go back to Funding Circle first over their bank

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Asset Financing Secure finance against your assets

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Secured Loans Loans secured against assets of the business

RLS Recovery Loan Scheme

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Broker
THINK Business Loans Property Development Finance

Speak to a property development expert

Rates from 3.5% APR (over Base)

Up to 75% LTV of purchase price and 100% of building costs covered
- Minimum Turnover
  Must be profit-making
- Available Amounts
  From £250,000
- Available Terms
  1 month to 30 years
See Deal + More info
Company details
- THINK's funding platform matches your businesses eligibility against hundreds of lenders instantly (without a credit check)
- THINK are the UK's leading business lending specialists; their experts are on hand to guide you through the process
- Find the perfect loan in minutes - Make the lender work for you
Eligibility Criteria
- Deposit required (cash or equity)
- Applicants considered on a case-by-case basis

Suppliers that don't offer All Property Development Finance Loans but may offer suitable alternatives:

Peer To Peer
Funding Circle

Your business must have a minimum of 2 years’ trading history

A leading UK platform for Small Business Loans

Simple online application and decisions in as little as 1 hour

Rates from 4.3% to 12.1% per year - No early settlement fees
- Minimum Turnover
  No minimum
- Available Amounts
  £10,000 to £500,000
- Available Terms
  2 to 6 years
See Deal
Company details
- A leading UK platform for Small Business Loans
- Simple online application and decisions in as little as 1 hour
- Rates from 4.3% to 12.1% per year - No early settlement fees
Eligibility Criteria
- A leading UK platform for Small Business Loans
- Simple online application and decisions in as little as 1 hour
- Rates from 4.3% to 12.1% per year - No early settlement fees
Broker
EJ Finance

Application-to-offer within 24 hours

To be contacted within 3 minutes of applying

Access to over 200+ lenders, covering all sectors
- Minimum Turnover
  £50,000 p.a.
- Available Amounts
  £10,000 to £10,000,000
- Available Terms
  1 months to 10 years
See Deal
Company details
- Application-to-offer within 24 hours
- To be contacted within 3 minutes of applying
- Access to over 200+ lenders, covering all sectors
Eligibility Criteria
- Application-to-offer within 24 hours
- To be contacted within 3 minutes of applying
- Access to over 200+ lenders, covering all sectors
Broker
Fluidly

YOUR BUSINESS MUST BE TRADING FOR 12 MONTHS OR MORE

Hassle free funding options within 30 seconds

Team of Funding Specialists are on hand to support your application

A range of products available including Recovery Loan Schemes, unsecured and asset financing
- Minimum Turnover
  £50,000 p.a.
- Available Amounts
  £15,000 to £10,000,000
- Available Terms
  3 months to 7 years
See Deal
Company details
- Hassle free funding options within 30 seconds
- Team of Funding Specialists are on hand to support your application
- A range of products available including Recovery Loan Schemes, unsecured and asset financing
Eligibility Criteria
- Hassle free funding options within 30 seconds
- Team of Funding Specialists are on hand to support your application
- A range of products available including Recovery Loan Schemes, unsecured and asset financing
iwoca

Flexible Credit Facilities of £1,000 to £200,000 for Limited Companies

No fees or long term commitments

Apply online in minutes for a decision (some decisions may take up to 24 hours)
- Minimum Turnover
  £50,000 p.a.
- Available Amounts
  £1,000 to £200,000
- Available Terms
  up to 12 months
See Deal
Company details
- Flexible Credit Facilities of £1,000 to £200,000 for Limited Companies
- No fees or long term commitments
- Apply online in minutes for a decision (some decisions may take up to 24 hours)
Eligibility Criteria
- Flexible Credit Facilities of £1,000 to £200,000 for Limited Companies
- No fees or long term commitments
- Apply online in minutes for a decision (some decisions may take up to 24 hours)
Broker
Swoop Funding

Your business must be trading for 12 months or more

Simple, secure and speedy search of 1,000 funding providers without affecting your credit rating

Free access every type of finance including the Recovery Loan Scheme

Speak to Swoop’s team of five-star Trustpilot rated experts
- Minimum Turnover
  £100,000 p.a.
- Available Amounts
  £1,000 to £10,000,000
- Available Terms
  3 months to 6 years
See Deal
Company details
Eligibility Criteria
Fleximize

Voted "Best Business Finance Provider" at the British Bank Awards 2020

Industry-leading flexibility - top-ups, repayment holidays, no hidden fees

Interest charged on a reducing balance, repay early and only pay for the time you had the loan

Rates from 0.9% per month (10.8% per annum), with no additional fees
- Minimum Turnover
  £60,000 p.a.
- Available Amounts
  £5,000 to £500,000
- Available Terms
  3 months to 4 years
See Deal
Company details
- Voted "Best Business Finance Provider" at the British Bank Awards 2020
- Industry-leading flexibility - top-ups, repayment holidays, no hidden fees
- Interest charged on a reducing balance, repay early and only pay for the time you had the loan
- Apply online in minutes, receive funds in as little as 24 hours.
Eligibility Criteria
- Minimum annual turnover of £60,000 p.a.
- Borrow between £5,000 and £500,000
- Business activities must be UK-based and impacted by Covid-19
Broker
Funding Xchange

Access 70 lenders from one simple funding request

Easily compare the choices available, including RLS options

Apply with confidence, no impact on your credit score
- Minimum Turnover
  £100,000 p.a.
- Available Amounts
  £1,000 to £500,000
- Available Terms
  3 months to 5 years
See Deal
Company details
Eligibility Criteria
NatWest Rapid Cash - Invoice Finance

Eligibility Criteria Apply

Rapid Cash is an innovative, high tech solution to business financing

Borrow against your unpaid invoices and get a flexible line of credit from £25,000 to £1 Million

You could be approved within 48 hours. Security and guarantee required. Fees may apply
- Minimum Turnover
  £100,000 p.a.
- Available Amounts
  £25,000 to £1,000,000
- Available Terms
  No min/max terms
See Deal
Company details
- Rapid Cash is an innovative, high tech solution to business financing
- Borrow against your unpaid invoices and get a flexible line of credit from £25,000 to £1 Million
- You could be approved within 48 hours. Security and guarantee required. Fees may apply
Eligibility Criteria
- Rapid Cash is an innovative, high tech solution to business financing
- Borrow against your unpaid invoices and get a flexible line of credit from £25,000 to £1 Million
- You could be approved within 48 hours. Security and guarantee required. Fees may apply
Broker
Portman Asset Finance

Business finance broker with specialist sector experience, offering fast and flexible finance solutions

Access over 40 leading UK lenders

Over £750 million in funding provided to thousands of small-to-medium sized UK businesses
- Minimum Turnover
  No minimum
- Available Amounts
  £10,000 to £10,000,000
- Available Terms
  Up to 5 years
See Deal
Company details
- Business finance broker with specialist sector experience, offering fast and flexible finance solutions
- Access over 40 leading UK lenders
- Over £750 million in funding provided to thousands of small-to-medium sized UK businesses
Eligibility Criteria
- Business finance broker with specialist sector experience, offering fast and flexible finance solutions
- Access over 40 leading UK lenders
- Over £750 million in funding provided to thousands of small-to-medium sized UK businesses
Nucleus

Fast service - receive your funding in 24 hours

Unsecured and secured business loans

7 products tailored to your business
- Minimum Turnover
  £60,000 p.a.
- Available Amounts
  £3,000 to £50,000,000
- Available Terms
  3 months to 8 years
See Deal
Company details
- Fast service - receive your funding in 24 hours
- Unsecured and secured business loans
- 7 products tailored to your business
Eligibility Criteria
- Fast service - receive your funding in 24 hours
- Unsecured and secured business loans
- 7 products tailored to your business

Also for Business

Our comparison service features a selection of providers from whom we receive commission. This table is initially ordered according to our commercial arrangements. You can use the options above the table to order it according to various criteria.

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Last updated on 16 November 2020.

Property Development Loans FAQ

Find out more about property development loans and how you can access this specific type of funding for a new build, conversion or renovation project.

What is a property development loan?

A property development loan is finance taken out by a property developer to fund a new build, conversion or major renovation project. There are a variety of different types of loan options for these kinds of projects, all available to business people who need to borrow some cash to fund either a commercial or residential property development project.

What are the different types of property development loan?

Although developers sometimes use buy-to-let commercial mortgages, bridging loans and auction finance to help them fund their development, there are plenty of lenders who specifically focus on providing development loans. They tend to target businesses that are looking to undertake new builds, conversions or renovations that they can later sell off at a profit.

How much can I borrow with a property development loan?

Depending on your requirements, lenders will consider offering anything from around £200,000 to tens of millions of pounds. Providing you do some groundwork research, you should be able to find a funding level that suits your project. However, there is likely to be a limit to the percentage of the total value of the property that the provider will lend against. You will usually only be able to borrow a percentage of the GDV.

What is GDV?

GDV stands for gross development value, which is the expected value of the project after all the work is completed. Many lenders will offer you up to around 75 per cent of GDV so you are likely to need to provide the rest of the cash yourself.

In some cases, you may be able to borrow 100 per cent of the building costs for a development providing you already own the land, which is seen as an asset against which the loan can be secured.

How quickly can I receive a property development loan?

Unlike with a traditional residential mortgage, developers usually put up their own cash at the beginning of the project and then draw down on the development loan in stages as the project demands.

How long do I have to repay a property development loan?

Developer loans are usually repaid within about 18 months of the initial loan being approved. The repayment is usually made in one instalment at the end of the development and the interest payable is usually included in the total repayment amount rather than there being any payments to make on a monthly basis. This ensures that the developer can focus on getting the development finished before having to worry about making repayments.

How do I apply for a property development loan?

Firstly, you will struggle to secure a property development loan without full planning permission for your project. Once you have this in place, you will be able to approach lenders. However, as well as a full appraisal of the viability of your project, lenders will also ask for details on your experience, credit history and the full details of the team involved in your project. Your financials will need to be watertight and prospective lenders will also want to visit the site in question to ensure it meets their expectations and is suitable for the proposed project.