Paragon Bank funds residential development across England and Wales, from new-build and conversion schemes to student accommodation and build to rent, and also funds commercial schemes that are largely or wholly pre-let, through relationship-led development finance. Bridge & Build Finance is an independent broker and is not part of Paragon Bank; it is one of the lenders we compare for development finance. You can read more on Paragon Bank's own website.
About Paragon Bank
Paragon Bank PLC is based in Solihull and is part of Paragon Banking Group, which describes itself as a specialist banking group serving individuals and SMEs across the UK. The group is well known for buy-to-let mortgages and has expanded into specialist business lending, including asset finance, invoice finance and development finance.
As a deposit-taking bank, Paragon funds its lending largely from savings deposits. Its development finance team works through relationship directors who manage each scheme from application to repayment.
Paragon's development lending is for developers and property companies. It is not a regulated product and is not designed for individuals building their own home.
What Paragon Bank funds
At the time of writing (October 2026), Paragon's development finance range includes the following.
| Product | What it is for | Key criteria |
|---|---|---|
| Residential development finance | Multi-unit new build, conversion and refurbishment schemes | From £1m, with a maximum now up to £60m; up to 70% of GDV and 90% of costs, terms up to 36 months, England and Wales |
| Student accommodation (PBSA) | Purpose-built student schemes | For experienced developers |
| Build to rent | Schemes built to be let and held | Assessed case by case |
| Pre-planning finance | Buying sites before full residential planning is granted | £400,000 to £8m, up to 65% of purchase price, up to 18 months, England only |
| Marketing period loans | Refinancing completed units while they are sold | £1m to £10m, up to 70% of value, up to 15 months, England and Wales |
| Pre-let commercial development | Commercial schemes largely or wholly pre-let on institutionally acceptable terms | Up to £10m, up to 65% of the completed investment value and 85% of costs, England and Wales |
| Bridging finance | Short-term funding to secure an acquisition | Assessed case by case |
Paragon says it takes planning gain into account, so uplift from a planning consent may count towards your equity, although it expects at least 5% real cash in the scheme. Repeat developers may be offered peak debt or revolving facilities, and it supports student and over-55s schemes. Its Green Homes incentive halves the loan exit fee on schemes with at least five private units where 80% or more achieve an EPC A rating. Paragon has announced that its maximum development loan has risen to £60 million.
See our guides to planning gain bridging, development exit finance and green development finance.
Who Paragon Bank suits (and who it may not)
Paragon tends to suit:
- SME and mid-sized developers building multi-unit residential schemes in England and Wales.
- Schemes needing £1 million or more, including larger projects.
- Developers wanting a bank lender that can also fund pre-planning site purchases and the marketing period after completion.
- Experienced developers of student accommodation and build to rent.
- Developers of commercial schemes that are largely or wholly pre-let.
- Developers building to high energy-efficiency standards.
It may not suit development loans below £1 million, speculative commercial schemes without a pre-let, single-unit schemes or self-builders, projects in Scotland or Northern Ireland, or developers needing more than 70% of GDV.
What Paragon Bank looks at
As a bank with relationship-led lending, Paragon will look at:
- Your experience and track record, particularly for student accommodation and larger schemes.
- The site, planning status and the GDV, supported by valuation.
- Build costs, the programme, the contractor and the professional team.
- Your equity, including any planning gain.
- The exit: sales evidence for the location, or a refinance plan for build to rent.
- For the green incentive: expected EPC ratings.
Pros and cons
Pros
- A specialist bank with a dedicated development finance team.
- Up to 70% of GDV and 90% of costs.
- Covers the full cycle: pre-planning, build and marketing period.
- Takes planning gain into account.
- Funds pre-let commercial development as well as residential.
- Exit fee discount for greener schemes.
Cons
- Minimum development loan of £1 million.
- England and Wales only, with pre-planning finance in England only.
- Aimed at multi-unit residential and pre-let commercial schemes rather than small or speculative ones.
- No regulated self-build lending.
Going through a broker vs going direct
Paragon works with developers directly and through brokers. Comparing first matters because bank and non-bank development lenders differ on leverage, fees and how they treat planning gain or contingency, and the cheapest headline rate is not always the cheapest loan overall.
We search the market, set Paragon alongside other development lenders, present your scheme and manage the application through to completion. It is free to enquire, and any broker fee is disclosed before you proceed.
Alternatives to Paragon Bank
- OakNorth Bank: bank development finance for experienced developers.
- Aldermore: specialist bank development lending for larger schemes.
- Secure Trust Bank: development finance for mid-sized and larger schemes.
- Hampshire Trust Bank: development finance and development exit.
- Shawbrook Bank: development finance and bridging.
Common questions
How much can I borrow from Paragon Bank for development?
At the time of writing, Paragon's residential development finance starts at £1 million, with a maximum it has raised to £60 million, up to 70% of GDV and 90% of costs.
Does Paragon fund sites without planning?
Yes. Its pre-planning finance lends £400,000 to £8 million, up to 65% of the purchase price, for up to 18 months on sites in England.
Where does Paragon Bank lend development finance?
England and Wales for residential development, and England only for pre-planning finance.
Does Paragon offer a green discount?
Paragon's Green Homes incentive halves the exit fee on schemes with at least five private units where 80% or more are rated EPC A.
Does Paragon take planning gain into account?
Paragon says it does, which can help where a planning consent has increased the site's value.
Does Paragon fund commercial development?
Yes, where the scheme is largely or wholly pre-let on institutionally acceptable terms. It lends up to £10 million, up to 65% of the completed investment value and 85% of costs, in England and Wales.
What is a Paragon marketing period loan?
Funding after completion that gives you time to sell the units. Paragon lends £1 million to £10 million, up to 70% of value, for up to 15 months, in England and Wales.
This review is our independent summary of the lender's publicly stated lending, checked in October 2026. Criteria change, so confirm the current position before relying on it. Bridge & Build Finance is an independent broker and is not part of any lender reviewed. Finance is subject to status, valuation and lender approval.
