Paragon Bank development finance review
Paragon Bank offers development finance for experienced developers working on residential new build, conversion, refurbishment, build-to-rent and student accommodation projects. This guide explains the published project scope, funding uses and costs to confirm for an individual scheme.
By Funding Fred · Sources checked 19 September 2026
Our enquiry compares selected Funding Fred partners. It is not an application directly to Paragon Bank. Funding Fred is an introducer, not a lender.
Potential fit
Who could consider Paragon Bank?
- Developers working on multi-unit residential new build, conversion or refurbishment schemes, where Paragon describes funding for these project types.
- Sponsors of build to rent developments needing finance across both the construction phase and the subsequent rental period.
- Developers delivering purpose-built student accommodation, or those seeking site acquisition funding ahead of planning permission being granted, where Paragon lists this as an available use.
Worth weighing up
When to consider other options
- The scheme is a first development project without a track record, since Paragon's product information is positioned toward experienced developers.
- Funding is needed for a commercial pre-let scheme or a standalone bridging requirement, which Paragon describes as separate products from its residential development finance.
- A quicker, unsecured route to working capital is more appropriate than a secured, project-specific development facility tied to a construction programme and exit.
Understand the offer
Costs and repayments
Paragon does not publish a fixed interest rate, arrangement fee scale or exit fee schedule for its development finance on its public product page. Any pricing depends on the individual scheme, loan-to-cost, loan-to-GDV and the developer's experience, so figures should always be confirmed through a written quote from Paragon rather than assumed from a generic rate.
Development finance of this type is typically structured around staged drawdowns as construction progresses, with interest usually calculated on drawn funds rather than the full facility from day one, though the exact drawdown and interest mechanism for this product should be verified directly with Paragon before relying on it. Costs on facilities like this commonly include arrangement fees, monitoring surveyor fees and legal costs, in addition to interest; for a general breakdown of how these cost categories typically work across UK development finance, see this compare funding structures guide.
Repayment is structured around the scheme's exit, whether that's a sale of completed units, refinancing, or, where Paragon offers it, a marketing period loan once residential units are complete. A viable, evidenced exit strategy is a standard requirement across development finance products, and this should be confirmed as part of any application rather than assumed.
Eligibility and application
Paragon's published information positions this product for experienced developers, with specific routes for residential new build, conversion, refurbishment, build to rent and purpose-built student accommodation. Site acquisition funding ahead of planning permission is also listed among its uses. Beyond these categories, Paragon does not publish detailed underwriting criteria such as minimum loan size, maximum loan-to-cost or specific developer track record thresholds on its general devfin page, so these details are unknown to this guide and would need confirming directly.
Enquiries for Paragon's development finance are made through Paragon Bank directly, typically via its intermediary or direct channels described on its site. There is no published detail here on geographic restrictions beyond the UK market, so any regional limitations should be checked with Paragon before progressing a scheme.
Advantages to weigh up
- Coverage spans several development types, new build, conversion, refurbishment, build to rent and student accommodation, rather than a single narrow use case.
- A dedicated exit product for marketing periods on completed residential units is described, which can be relevant once construction finishes.
- Pre-planning site acquisition funding is listed as an available use, which some development lenders do not offer.
Limitations to understand
- No rates, fees or loan-to-cost limits are published on Paragon's general development finance page, so pricing is scheme-specific and unknown until quoted.
- The product is described as aimed at experienced developers, which may limit suitability for first-time scheme sponsors.
- Commercial pre-let and bridging finance are handled as separate Paragon products, so this development finance line should not be assumed to cover those needs.
Look at the wider picture
Comparing the alternatives
Because Paragon does not publish fixed pricing for this product, comparing it against other development lenders means requesting a written quote for the specific scheme and setting it against other written offers on the same basis, same loan-to-cost, same drawdown structure, same fee assumptions. Structural differences matter as much as headline rate: how drawdowns are released against build stages, how interest is calculated, and what exit route is required all affect the real cost of a facility.
Before approaching any lender, it helps to understand how development finance is typically structured across the market. The funding options and funding guides pages cover the mechanics generally, while the eligibility and terms guide checklist sets out the planning, cost and exit evidence lenders commonly expect, useful preparation regardless of which lender a developer approaches. Full detail on Paragon's own product scope sits on its official development products page, and the same page is the primary reference for confirming current terms directly with Paragon.
Product features checked against each provider’s UK website. These are comparison pointers, not a price ranking or a promise of eligibility.
Your Paragon Bank questions, answered
Costs, eligibility and the details to check before applying.
How we put this guide together
This is a review of published UK product information, not a customer experience or a hands-on test. We have not assigned a star rating. This guide focuses on Paragon Bank — Property development finance. Other products may have different terms.
Sources checked 19 September 2026. Your written offer determines your actual costs and conditions.
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