The lender said the increase in maximum GDV for residential development finance complemented its existing range and strengthened its support of UK SME housebuilders.

It comes just after the launch of a sub £1 million lending product for smaller housebuilders, which complemented its existing offering of up to £30 million maximum loan size.

Combined with the new 70% GDV product, these initiatives will assist SME housebuilders in their vital role to deliver the UK’s housing needs.

Paragon, which has remained active and open for business throughout the pandemic, funds all development finance off its own balance sheet, which facilitates quick and commercial decision making, faster turnaround times and an overall seamless process for customers from credit approval to completion.

Robert Orr, managing director of Paragon Development Finance, said: “UK SME housebuilders are developing much needed new homes across the UK and access to finance from a committed, experienced and capable lender is vital.

“We always look at ways in which we can support customers and the move to 70% GDV funding is a further extension of that.

“As part of a successful, well-capitalised bank, all of our lending is completely off our own balance sheet, so customers have one point of contact and a seamless process with credit and due diligence. That is important to them as they look to get schemes off the ground.”