Offices on a commercial street

If you’re planning on starting a property development project or looking to renovate a buy-to-let property, then you may want to consider property finance options.

This guide will help you navigate through the complex property finance options available to property developers. Here’s everything you need to know to get started.

What Goes Into Property Development Finance?

A property development finance company is a type of business loan used to fund a variety of property projects, such as residential, commercial, or mixed-use. This type of loan is typically categorized under commercial mortgages, personal loans, and term loans.

Developers can use development finance to fund various property projects, including residential or commercial projects. It’s typically the most appropriate type of property finance for ground-breaking developments, such as building a new property from scratch.


If you cannot get the funds for private residential property, property development finance can help. Both residential and commercial property developers can apply for this type of loan.

The eligibility criteria for property development finance vary depending on the lender. They’ll typically look at various factors, such as your credit score and business plan. Having a well-designed investment strategy can also help you get a good rate.


Before you apply for property development finance, it’s important that you thoroughly research the various options available to you.

If you’re planning on buying a property to rent out, you’ll need a buy-to-let mortgage. On the other hand, a bridging loan can be used if you cannot purchase a new home and would like to renovate a property.

Bridge Loan

A bridge loan is a type of business finance used to fund a short-term refurbishment project. It can be used for the short term while the loan can be paid back.

This type of property development finance is typically used for larger projects, such as building a new home. It covers the land and the construction cost. Usually, the developer will need to source around 70% of the total build cost.

Large renovations can be funded with a commercial mortgage or a bridging loan. Property finance without development refers to various types of property finance options. These include commercial mortgages, bridging loans, auction finance, and private property development finance.

In Practice

Commercial property

There are various types of property finance available to property developers. For instance, if you’re planning on carrying out a large refurbishment project, then a refurbishment bridge loan might be the best option. This type of loan can cover the project’s costs for up to three months.

For instance, if a property developer wants to spend £500,000 on a plot of land, they can get a 50% loan and 70% of the deal.

For a property developer, this type of loan can reduce their total project cost by around £200,000. This means they can fund their other projects instead of spending all their money on construction.

Developers already active in the property market can also use their existing properties to secure property development finance. With enough equity in their portfolios, they can easily fund their purchases and grow their property portfolio.

Get Diverse Financing Options With Berkshire Capital Finance

Berkshire Capital Finance specializes in providing long-term loans to investors in commercial property and second properties.

We provide various services to our clients, such as commercial and corporate term loans, bridge loans, equity release, and debt consolidation. We conduct due diligence on your existing loan terms and provide a price quote for your new loan. If you’d like to discuss your options with a Business Finance Specialist, contact us today to learn more.



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