RBS holds the answer for property developers seeking financial help with their building projects. Property development finance is a loan secured against land or property, allowing developers to fund the development of their properties, which are later sold on for profit.

Property development loans are drawn out as the work is completed. A percentage is taken at set periods during the project which is predetermined by RBS’s surveyor reports. They also decide how much is to be given at each stage.

Property development finance is looked at by many developers as the better alternative to buy to let mortgages or commercial mortgages, this is because:

• It’s available anywhere in the UK
• Loans are for all types of property
• Low arrangement fees
• Up to 90% of costs are covered
• Same day decision on application
• Interest is paid at the end of the loan
• From £50,000 to no upper limit to be borrowed
• Non-UK residents can apply
• Poor/Adverse credit not usually a problem
• No Income proof is required

First-time Property developers, or those with less experience, still have the opportunity to qualify for a loan, so long as they prove to be professional and able to manage a properties development.

Limited companies, limited liability partnerships, and individuals can all apply for property development finance. However, RBS usually requires the scheme to be placed in an SPV (special purpose vehicle); a limited company formed with the sole purpose of developing a single site.

Lending terms tend to range from 3-18 months depending on the size of the project, with interest rates in the range of 5%-12%. The determining factors are based on the type of project, loan amount, location and the developer’s experience.

If you’re a property developer seeking financial help for your building projects, then Royal Bank of Scotland’s property development finance may be the answer for you.