Residential property loans

Short-term flexible funding that's ideal for small and medium-sized developers looking to finance residential projects in Wales.

The Development Bank pulled out all the stops to ensure a quick and smooth completion. We’re very grateful for their support.

Matthew Watkins, Mentrus Developments

Tailored funding for residential property developers

Through the Wales Residential Property Fund we offer loans for residential and mixed-use developments in Wales.

Loans up to 70% of Gross Development Value (GDV), including up to 100% of build costs
Loan sizes from £150,000 to £10 million
Loan terms of up to four years
Up to 2% green incentive reduction in fees

We're only able to support projects based in Wales.

Before we can help you, you’ll need to give us:

Address of the property you plan to develop.
Summary of your development plans and projected costs.
Breakdown of the expected Gross Development Value (i.e. the end values once completed).
Summary of previous development experience for you and the key individuals involved.

How to apply for a residential property loan

Step 1

Contact our property team to discuss your project

Step 2

Together we'll discuss your requirements and next steps

Step 3

We'll send you a link to apply for your loan

Step 4

Detailed review of your proposals undertaken, due diligence and credit sanctioning process begins

Your questions answered

How does residential property development finance work?

If you're building residential property from scratch, a property development loan could help you with initial purchase costs and throughout the build of the project. Funds are released throughout the construction programme following a site visit from our independent monitoring surveyor who will certify costs to date and issue a certificate for payment, usually on a monthly basis.

How much can I borrow?

You can borrow a minimum of £150,000 and a maximum of £10 million, with the loan amount determined by the value of the property.

We can help with initial purchase costs, if the project metrics allow for this and planning permission's in place. We create a tailored approach to suit each individual project.

What can the residential property loan be used for?

The loan can be used to fund the development of residential property in Wales.

What is the maximum term of your residential property development loans?

The maximum term is 48 months for residential properties.

What customer contribution do you consider acceptable?

There are no set levels, but we expect customers to share the financial risk. Land purchase funds are often sufficient.

Do you offer term loans on a completed development?

The loan is to support the development of new homes to completion and is either repaid from the sale of the completed units, from a refinance, or a mixture of both. This means we can re-lend the funds to support further property development.