Property Development Finance UK

Not typically, unless you can provide additional security such as another property or asset. We will generally require borrowers to have a financial stake in the project and will only consider 100% funding where there is substantial collateral or under exceptional circumstances.

You secure the loan against your development site or property. We will then releases funds, sometimes in staged drawdowns, to cover purchase, build costs, or both.

You repay it when you sell the completed units or refinance with a development exit loan or mortgage.

If it adds value to property, it likely qualifies.

• Ground-up developments (new builds)
• Conversions (offices → flats, barns → houses, etc.)
• Heavy refurbishments and extensions
• Part-completed or stalled projects needing rescue funding

Borrowing levels will be dependent on your experience and exit plan. Higher borrowing levels generally carry increased risk and, as a result, attract higher interest rates.

Usually 1 to 12 months is the typical scenario - it’s not meant to be long-term, it’s a fast, flexible funding solution until you refinance or sell.

We can often release funds in stages as the build progresses. Each stage is verified by a survey or quantity surveyor report before the next tranche is paid.

This protects both you and us as the lender.

Interest rates are decided based on depending factors such as:

• The loan amount
• The developer’s experience
• The loan-to-value (LTV) ratio
• The strength and viability of the exit strategy

While bridging finance offers speed and flexibility, it typically comes at a higher cost than conventional funding, reflecting the convenience and quick access to capital it provides.

Typical fees associated with a development bridging loan include the following.

It’s important to factor these costs into your initial budget to maintain strong profitability throughout the project.

• Arrangement fee
• Valuation and monitoring fees
• Legal fees: both your own and ours
• Exit fee: though occasionally waived
• Broker fees: optional but commonly applied

If your paperwork, development plans, and valuations are ready, you can secure an acceptance within 4 hours. In urgent cases, we can sometimes complete funding release within 48 hours.