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Development Finance

Smaller builders and property developers have an important part to play in helping to build between 225,000 and 275,000 homes each year, if the UK is to keep up with consumer demand for new housing.

However, in research conducted by the NHBC in 2014, 22% of builders and property developers said that obtaining finance was a major problem. When asked to explain the issues, 50% said banks were reluctant to lend to small builders, 30% said it took too long to obtain mortgage finance and 25% said banks didn’t understand their business. A damning indictment.

A like-minded approach

At Saffron Building Society, we’re different. We have a specialist property development finance team who understand the needs of small builders and property developers and are able to take a more personal approach to the way we do business.

Helping you get your clients development project off the ground


If your client is seeking finance to fund a property development project, we may well be able to help.

We assess each and every proposal on its own merits and don’t have off-the-shelf finance solutions, preferring instead to create a bespoke package that meets the exact requirements of your customers.

The developments we can finance

Here’s an overview of the type of developments in which we’re interested:

  • We’re happy to lend to experienced property developers or individuals with experience of the property development market, who have planning consent for a development project.
  • We’ll lend on residential new build, refurbishment or property conversion projects based in England or Wales (we don’t lend in Scotland).
  • We are particularly keen to hear about projects in our own heartland: East Anglia, London and the South East.
  • We’ll lend on single properties or multi-unit developments.
  • We typically provide funding of between £500,000 and £3million, but can be flexible.
  • We will lend up to 75% of the costs or 65% of the gross development value, whichever is the lower.
  • We will provide finance for the purchase of land as well as the construction costs.
  • We’ll offer flexible terms to suit your requirements and funding can be drawn-down in stages throughout the term of the project.
  • Rates are agreed on a deal by deal basis.