Lendus.

Property Development Loans

Finance your next residential or commercial development project with the right structure. Lendus compares 200+ lenders including specialist development finance providers to find the best terms.

200+ UK lenders
2-minute application
No credit check to apply
FCA-regulated brokers

Typical Range

£50k – £25m

Average Loan

£1500k

for property development

Decision Speed

24–48 hrs

for unsecured loans

Eligibility requirements

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Loan types available

Unsecured Business Loan

Rate
7.9% – 24.9% APR
Term
1 – 3 years
Security
No security required
Best for
Planning application costs, feasibility studies, professional fees, and small refurbishment projects

Secured Business Loan

Rate
5.5% – 14.9% APR
Term
1 – 5 years
Security
Existing property portfolio or personal property
Best for
Land acquisition, bridging to purchase sites, and working capital for development businesses

Development Finance

Rate
7.5% – 14.9% (rolled up interest)
Term
6 – 24 months
Security
First charge on the development site and works in progress
Best for
Ground-up new-build developments, conversions, and major refurbishment projects for resale or refinance

Representative example

Borrow £1,500,000 over 36 months at 9.9% APR (fixed). Monthly repayment: ~£48,330. Rates depend on your circumstances and the type of loan.

Market context

The UK property development sector contributes over £38 billion annually to the economy. Around 240,000 new homes were completed in England in 2024, with the government targeting 370,000 per year. Small and medium-sized developers account for approximately 40% of new housing delivery.

Common challenges

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Bad credit?

Several of our 200+ lenders work with property development businesses that have imperfect credit. You may need a personal guarantee or higher rate, but options exist. Our eligibility check uses a soft search — no impact on your credit score.

Frequently asked questions

How does development finance work?
Development finance is structured differently from a standard business loan. The lender funds the site purchase (typically 60-70% LTV) and the build costs (typically 85-100% of construction costs) in staged drawdowns as work progresses. Interest is rolled up (added to the loan) rather than paid monthly, so there are no monthly repayments during the build. The loan is repaid in full upon sale of the completed units or through refinancing to a buy-to-let mortgage. Total loan costs are typically 70-75% of the gross development value (GDV).
What is the difference between bridging finance and development finance?
Bridging finance is a short-term loan (typically 1-18 months) used to purchase a property quickly, often at auction or to secure a site before full development funding is in place. It is simpler and faster to arrange but more expensive for longer projects. Development finance is specifically designed for construction projects, with staged drawdowns linked to build progress and a monitoring surveyor. For light refurbishments (under 3 months), bridging may be sufficient. For anything involving structural work or new build, development finance is more appropriate and often cheaper overall.
Can a first-time developer get development finance?
It is possible but more challenging. Most development lenders prefer developers with at least 2-3 completed projects. First-time developers can improve their chances by appointing an experienced project manager or contractor, starting with a smaller project (under £500,000 GDV), having a larger equity contribution (35-50%), and demonstrating relevant experience in construction or property. Lendus works with lenders who support first-time developers with the right safeguards in place.
How much equity do I need for a property development project?
Typically, you need 25-35% of the total project cost (land + build + fees) as equity. This can be cash, equity in other properties, or a combination. For a project with a total cost of £1 million, you would need £250,000-£350,000 in equity with the lender funding the remainder. Some lenders offer higher gearing (up to 80-85% of costs) for experienced developers with strong track records and projects with healthy margins (20%+ profit on GDV). Mezzanine finance can also bridge part of the equity gap, though at higher rates.

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