Property development is an endeavour which is as unpredictable as it is exciting. But we didn’t need to tell you that, right? There are opportunities to learn, to grow, to fail and to bounce back, for sure, but most importantly, property development represents a chance to make some serious stacks. However, before you jump in, you must have the necessary property financing in place. A rare case of ‘accumulate before you speculate’, perhaps?

Whether you are a developer with many years of experience or a newbie about to embark on your first project, funding will always be crucial to the success or failure of your development. Fortunately, there are several methods you can employ to get the property development funding you need to both start and complete your next venture. With that in mind, here are 4 property development funding ideas for your next project.


You can use a commercial mortgage to buy commercial property such as shops, offices and industrial units — essentially anything that isn’t a residential property. Like private mortgages, they help you spread the cost of a significant purchase over several years. However, if you want to develop a residential property or you need extra funding to renovate a commercial property, you’ll need to explore other, more suitable options.

The most straightforward commercial mortgages are taken out by existing organisations that want to buy the premises where the business already operates. These are the ones most likely to succeed in the application process as the groundwork is already laid.


Part-exchange schemes (PX) are an ideal solution for property developers, as they offer a way for customers to sell their current property and move into a new one as swiftly as possible. A PX enables you to avoid unwanted expenses or delays that occur during conventional house sales, such as agency fees and broken property chains. 

Part exchange lets you grow your business and keep your customers satisfied. If you need a quick, hassle-free sale to fund a development, property financing with a PX may well be the best solution. Do be aware that you may not generate the same amount on a sale as you would a standard deal on your property, but the swiftness and lack of bureaucracy makes this an appealing option for some.


Buy-to-let mortgages can be an ideal solution if you intend to buy, refurbish and rent out a property for several years. Much like residential mortgages, your income will determine whether or not you qualify for a buy-to-let mortgage and how much you can borrow. This type of mortgage also restricts you to a single property.

If you want to begin a project involving several properties, you will need to look at alternative funding solutions. While buy-to-let mortgages aren’t ideal for a property in need of substantial development, they can prove fantastic for getting a foot on the development ladder.


If you need to sell a home for property development funding, and you need to do so quickly, your best bet could be a guaranteed purchase service. This not only speeds the process up, but it also removes a lot of the hassle of a conventional sale on the housing market. Companies that provide this type of service employ property specialists who help sellers who are either struggling to sell their home or need to do so fast. 

You’ll get a guaranteed offer (regardless of the property’s condition), and you’ll save time (otherwise spent marketing the property and negotiating on price) and money (in solicitor’s fees, surveys and more). When property financing, a loss or delay can derail a project and have a severe impact on your reputation as a developer, so speed and certainty are vital.