Natwest provides property development finance for property developers wanting financial aid to help with their building projects. The loan is secured against the property or land, to be used for its development, which at a later stage will be sold for profit.

Up to 90% of all costs can be provided, with there being a minimum loan of £50,000. Typically, the borrowed amount falls within the £200,000 to £5,000,000 range, but the upper-limit is limitless.

The lending term tends to fall within the 3-18-month range depending on the projected development times. It’s rare to go above 18 months, but it is possible.

When the funding has been approved, the first percentage of the loan is usually paid when the property is purchased. Further funds are then released at determined points in the building project, with the amount at each stage determined by Natwest’s surveyor reports.

For many developers, property development finance is the better alternative to commercial mortgages or buy to let mortgages. This is due to:

• Low arrangement fees
• Same day decision on application
• Available for all types of property
• No income proof is required
• Poor/Adverse credit is normally okay
• Non-UK residents can apply
• Available anywhere in the UK

For property developers with less experience, or even first-time developers – It’s still possible to get approved for a loan. So long as the developer proves they are able to professionally manage the properties development.

Experienced developers use property development finance to secure more assets with the same amount of equity. Allowing them to increase long-term profits, whilst building their portfolio to minimize risk should there be a downturn in the market.

Natwest requires the scheme to be placed in an SPV (special purpose vehicle) which helps protect both the bank and the developer. Limited companies, limited partnerships and individuals are all able to apply for development funding.