Property Development Finance UK

In short - no. We generally require borrowers to have a financial stake in the project. We only consider 100% funding where there is substantial additional collateral or if it there are 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.

A repayment rate will be assigned, and is calculated on factors like:

• Loan amount borrowed
• Experience in development
• Loan-to-value (LTV) ratio
• Strength and achievability of the exit

While bridging finance offers speed and flexibility, it typically results in a higher cost than conventional money lending.

Factor these costs into your budget to maintain profitability:

• Arrangement fees
• Valuation and monitoring charges
• Legal cost on both ends
• Exit penalty, if stipulated
• Broker costs: optional but commonly applied

Providing you are a UK homeowner, your paperwork, development plans, and valuations are ready, you can secure an acceptance within 4 hours. For urgent projects, complete funding can be given within 48 hours.