Funding expertise in uncertain times.

Saffron Building Society would be delighted to consider helping you fund your next project.

Development Finance

Over the years we have built up strong relationships with experienced property developers who value our approach to finance. As a mutual society, when you work with us you become one of our members and part of our group. We stay with you for the life of your project and use our expertise to help you deal with unforeseen events.

It was a pleasure working with the team from Saffron on our new build project. Peter and his team were always very approachable, courteous and professional, they always did what they said they would do and the process ran very smoothly.

I will be looking for a new project in the future and my first call for finance will be to Peter and his team. Thanks for all your help.

John Arnold
Arnold Associates, Surrey, March 2017

Who's it for?

Property development finance is for experienced property developers who will sell on to others for profitable gain, the properties they construct.

Self-build mortgages are aimed at individuals building or converting property that they will subsequently occupy themselves. For information on our Self Build mortgages please click here.

How we work

We provide residential property development loans to experienced individuals and housebuilders with knowledge of the market. We’ll consider projects throughout England and Wales, but are particularly interested in sites in London, the South East and East Anglia. Our customers like the fact that we understand the detail of their business and we provide ongoing advice, guidance and support throughout the complete development process.

We don’t just lend and walk away, we are dedicated to the project and we visit the site to ensure we support you as the project progresses. We offer assistance wherever possible to enable you to overcome potential issues, such as unavoidable cost and time overruns.

For us, it’s not just about finance. It’s about lending all of our years of experience to help you achieve a successful outcome.

Many of our customers stay with us and ask for support on subsequent projects. It becomes a partnership. We hope you too will value our dedicated approach and the energy we put into each and every development.

What we can lend:

  • We typically provide funding of between £500,000 and £3million, but can be flexible
  • 75% of project costs
  • 65% of Gross Development Value

Bridging Finance Designed For Developers

If you are a developer looking for support as you approach the end of a project, we may be able to help you.

Please note – this product is designed for experienced developers and intermediaries. It is not available to people selling their own home and looking to buy a new one to live in.

Find out more about Bridging Finance

Bridge the gap with our finance products

We have been working with developers for many years and have considerable experience in helping them with their finances.

As you get to the end of a project the last thing you need is delay. We know how difficult it is for developers who have empty properties for sale and money tied up in a site. You’re almost there, but you can’t yet realise the profit from all your hard work. This could be holding you back from investing in a new development, or hindering your personal plans.

We can lend from £150,000 to £3 million depending on your circumstances.

Our Bridge Product

We have a maximum term of 12 months on all applications. The table below illustrates our fees:

LTV Band Monthly Rate Fee Min Loan Max Loan
Up to 50% 0.6% per month 2% of the loan amount £150k £3m
Up to 60% 0.65% per month 2% of the loan amount £150k £3m
Up to 70% 0.75% per month 2% of the loan amount £150k £3m

Important product information

  • Unregulated lending only - but available to personal or corporate borrowers
  • Properties must be complete, fully warranted, on the market and unoccupied
  • No Early Repayment Charges
  • Minimum term 3 months
  • Rolled up interest

How to get more information and apply

We will take time to understand your project thoroughly so we can advise you on your options.

If you want to discuss your circumstances further, please contact us on 01799 582886 or email Development.Finance@saffronbs.co.uk.

Case study: How we help developers with their cash flow

Read the case study
A small development of houses

We put a great deal of value into the service and relationships we have with our customers. We had previously dealt with a developer called Bryan from the South East of England. He was asset rich but did not have the liquidity to be able to move on to his next development. In circumstances like these we are able to look for ways to provide a ‘Bridge to Exit’, which is a loan to provide professional developers with the cash they need to keep their operations running smoothly.

Below we describe how we were able to work with Bryan to keep his business moving and growing in line with his expectations, and help to remove the cash flow problems.

Background

We make every effort to keep in touch with our customers after we have worked on a project with them. Bryan had been a customer with us three years ago and we contacted him to see how his latest development was going.

Bryan had hit a problem in the final stages of one of his developments, consisting of three properties. Two had sold for £500,000 each, allowing him to repay his outstanding loan on the investment. However, one remained unsold, and at the same time he had identified a development that he felt was just right for the next phase of his business.

Bryan had spoken to a number of different providers but the clearing banks weren’t interested and other bridging lenders were more expensive.

How we helped

We at Saffron were able to assess the site and could see that the remaining property was good to sell - with building regs and an NHBC warranty in place. The valuation was exactly as Bryan had described and we were able to make £300,000 available for his next development, at a pricing of 0.75%.

Result

We were able to provide a ‘Bridge to Exit’ loan which helped Bryan to bid for his next development without waiting for the remaining property to be sold. He could have waited until his existing development was complete but that would have meant missing out on an opportunity which fitted his business model, it also meant that we were well placed to help this customer fund the new project.

How to get more information

If you want to discuss your project further, please contact us on 01799 582886 or email Development.Finance@saffronbs.co.uk. One of our development experts will go through the details and we can provide a quick evaluation of your options.

Case Study

Tony Osman

Tony Osman, Director of Swindon based Belsize Homes Limited, had been developing residential properties for a number of years, when he saw an opportunity to take his business to the next level

Find out more