Challenger banks have transformed UK property finance by offering nimble, specialist senior debt products tailored to development, buy-to-let, and investment funding needs. For developers and investors in London, challenger lenders represent valuable alternatives to traditional high street banks—often delivering faster decisions, higher Loan‑to‑Cost (LTC), and streamlined execution.
Fraser Bond connects clients with leading challenger and specialist banks to structure competitive, compliant senior debt for high-value London projects.
Challenger banks are-tiered financial institutions that operate alongside traditional banks, focusing on underserved or niche markets. In real estate, many challenger banks specialise in senior and development debt, bridging the gap between investor equity and older lending models. In 2024, challenger and specialist banks provided around 60% of UK SME lending, including property-backed deals
These lenders typically offer:
Up to 80% LTC or 65–75% LTV
Streamlined application processes and flexible underwriting
Shorter decision times than traditional institutions
Examples of challenger banks active in property lending include OakNorth Bank, Allica Bank, and institutional lenders like Imperial Blue Finance .
A sector-leading lender for UK SMEs including property developers, offering senior development loans and property-backed finance from £0.5m–£25m.
Rapidly expanding SME lender since 2020, now serving high-value development projects and buy-to-let borrowers with tailored credit facilities .
Not a bank but an institutionally backed lender offering senior debt up to 90% of project costs, often exceeding traditional bank limits
London-based lender providing short-term asset-backed credit facilities (£250k–£25m), fundable against development sites or income assets .
Whole-of-market brokers like Catherine Spode & Associates access challenger banks, family offices, and offshore lenders to match borrowers with appropriate senior debt providers catherinespodeandassociates.co.uk+1catherinespodeandassociates.co.uk+1.
Higher Leverage Flexibility
Access up to 80% LTC or more, enabling faster project progress and better capital efficiency.
Speed and Agility
Rapid decisions, streamlined term sheets, and adaptation to unconventional deals or non-standard borrower profiles.
Competitive Terms
Indicative interest rates from challenger lenders are often lower than mezzanine alternatives—typically 6–10% depending on project scale imperial-blue-finance.co.uk+1clearwellcapital.co.uk+1.
Simplified Capital Structures
Many challenger banks allow higher leverage in a single senior facility, reducing need for mezzanine layering and simplifying capital stack management.
We source lenders across traditional, challenger, and private capital channels to identify the best fit for your project scale, value, and risk profile.
Fraser Bond designs capital stacks integrating senior, stretch senior, and mezzanine finance where needed—maximising return while managing risk.
We assist with lender documentation, covenant compliance, QS reporting, planning alignment, and drawdown monitoring throughout the project life cycle.
Residential conversion in Canary Wharf funded with senior debt provided via OakNorth.
Mixed-use infill development in Vauxhall, leveraging a stretch senior facility arranged through Imperial Blue.
Portfolio refinancing via Allica Bank for multiple buy-to-let units under one agreed facility.
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