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.
1 product found
  • THINK Business Loans Property Development Finance logo
    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
  • Suppliers that don't offer All Property Development Finance Loans but may offer suitable alternatives:

    • EJ Finance logo
      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
    • Funding Circle logo
      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 2.9% 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
    • Nationwide Finance Business Finance logo

      Nationwide Finance Business Finance

      • Nationwide Finance help 35,000 businesses get finance each year
      • Direct funder - not a broker
      • Same day decision, funds within 48 hours
      • Minimum Turnover
        No minimum
      • Available Amounts
        £10,000 to £500,000
      • Available Terms
        1 to 5 years
    • Puzzle Funding logo
      Broker

      Puzzle Funding

      • Puzzle’s free service matches your business with over 100+ lenders in seconds
      • Complete your application within 3 minutes and receive funds in as little as 1 hour
      • High Acceptance Rate
      • Minimum Turnover
        £50,000 p.a.
      • Available Amounts
        £1,000 to £15,000,000
      • Available Terms
        1 month to 25 years
    • Fluidly logo
      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
    • iwoca logo

      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
    • 365 Business Finance logo

      365 Business Finance

      • Your business must process credit and debit card transactions to apply for this product
      • A flexible business funding alternative
      • Cash advanced against card transactions
      • Pay back an affordable % of your card transactions
      • Minimum Turnover
        £5,000+ card transactions per month
      • Available Amounts
        £5,000 to £200,000
      • Available Terms
        4 to 18 months
    • MarketFinance logo

      MarketFinance

      • Fast, flexible, frictionless business finance
      • Helping SMEs secure working capital since 2011
      • Various funding solutions available to meet all business needs
      • Minimum Turnover
        £50,000 p.a.
      • Available Amounts
        £5,000 to £50,000
      • Available Terms
        3 months to 1 year
    • Fleximize logo

      Fleximize

      • Industry-leading flexibility - top-ups, repayment holidays, penalty-free early repayment, no set-up fees
      • Interest charged on reducing balance, not total loan amount - repay early and only pay for the time you had the loan
      • Apply online in five minutes, typically get a decision in 24 to 48 hours, receive funds the same day
      • Minimum Turnover
        £60,000 p.a.
      • Available Amounts
        £5,000 to £500,000
      • Available Terms
        1 month to 4 years
    • Funding Xchange logo
      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
    • Swoop Funding logo
      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
    • NatWest Rapid Cash - Invoice Finance logo

      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
    • Portman Asset Finance logo
      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
        £1,000 to £10,000,000
      • Available Terms
        Up to 5 years

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.

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