Personal banking

RESIDENTIAL DEVELOPMENT LOANS

We offer flexible loans to experienced residential property professionals to help with property purchase and development.

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WHAT DO WE OFFER?

We offer straightforward purchase loans to help you secure your property project, and development loans to make that project a reality.

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WHAT TYPE OF LOAN DO YOU NEED?

Developing property

Ground-up development of single and multiple units, or permitted schemes

Converting a property

Bespoke conversions such as barns, flats and houses

Refurbishing property

Heavy or light refurbishments; let us know what you need

KEY FEATURES OF OUR LOANS

  • Designed for experienced residential property professionals.
  • Loans available to individuals and UK incorporated entities.

We’ll lend on:

  • Light/ heavy refurbishments.
  • Permitted development schemes.
  • Ground-up developments of single and multiple units.
  • Bespoke conversions such as barns, churches, flats and houses.
  • Loans up to 65% of purchase price and 100% of build costs.
  • Loans up to £2m per project, including rolled interest (max. £3.5m in total per client).
  • Loan term of two years or less.
  • Maximum 65% of Loan to GDV at end of loan term, including finance costs.
  • No exit fee if the loan is in place for more than six months.
  • Interest roll-up considered.

GET STARTED TODAY

We’ve made our application process straightforward, and getting things underway is as simple as starting a conversation.

We’re keen to talk to you now if you’re in the process of securing finance for a project. Contacting us is confidential and obligation-free.

Every customer and project is different, but here’s an overview of what to expect:

1 Initial enquiry

Get in touch with us and we’ll have an initial discussion about your needs.

2 First thoughts

We’ll ask for some financial documents and get to know you and your project better. Then we’ll agree the best way to proceed.

3 Meeting up

We’ll meet with you to discuss your needs and requirements, understand the risks involved and answer any questions you may have. Following this we’ll send you a proposal.

4 Approval

If you’re happy with the proposal, we’ll start the formal credit approval of the loan. If successful, you’ll be sent the loan documents to you for approval.

General conditions

We’ll need:

  • a full market valuation and development appraisal by a surveyor instructed by us
  • a first legal charge over the development property
  • to appoint an independent monitoring surveyor to monitor the development and certify staged payments.
  • repayment from the sale or refinance of the development properties, with full net sale proceeds to be used in permanent debt reduction
  • a director’s/shareholder’s full personal guarantee when lending to an incorporated entity
  • A debenture over the company when lending to an incorporated entity

In some situations, we may need:

  • collateral warranties
  • NHBC guarantee or equivalent

HOW MUCH WILL IT COST?

We offer competitive interest rates.

Our fees will depend on the complexity of your application. This will be agreed with you as part of the process.

A one-off arrangement fee is payable.

Doing your bit for charity

* One third of the arrangement fee paid to CAF Bank can be transferred into a CAF Charity Account. These funds will be available for you to donate to charities of your choice.

Typical costs

Interest rate
5.5% above Bank of England Base Rate
One-off arrangement fee 1.5%
Exit fee
1% in first six months. No exit fee if the loan is in place for more than six months
Solicitor's fees
Typically £2,650 + VAT and disbursements
Your solicitor's fees
These vary depending on your solicitor. We recommend requesting a fixed price for peace of mind
Valuation fees
These vary but are charged per property.

Want to know more?

TALK TO US TODAY

Our dedicated team is ready to answer your questions to help you get the ball rolling.

Contact the team

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Loan applications subject to credit assessment. Security will be required.

Your personal or company’s assets may be at risk if you do not keep up with the repayments for a mortgage, loan or any other debt secured on them.

CAF Bank Limited (CBL) is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered office is 25 Kings Hill Avenue, Kings Hill, West Malling, Kent ME19 4JQ. Registered under number 1837656. CBL is a subsidiary of Charities Aid Foundation (registered charity number 268369).

If you are thinking of consolidating existing borrowing, you should be aware that you may be extending the term of the debt and increasing the total amount you pay.