Development Finance

It can be used to acquire land, cover construction costs, and fund ground-up building projects ranging from single homes to large-scale developments.

Unlike a mortgage, funds are released in stages linked to build progress. This makes it suitable for projects where costs occur over time rather than upfront.

The amount depends on the project’s gross development value and the lender’s loan-to-value or loan-to-cost limits. Typically, borrowing ranges from 60–70% of the land and build costs, though this varies.

Lenders usually require planning permission, costings, schedules, and details of your experience as a developer. A broker helps package this information to improve the chances of approval.

Timescales vary, but with all documents ready, facilities can sometimes be put in place within days. Larger or more complex schemes may take longer.

Experience is preferred, but some lenders will back first-time developers if the project is well-structured and professional support (such as contractors and surveyors) is in place.

Loans are usually secured against the development site or property itself, and sometimes supported by additional assets or guarantees depending on the size of the facility.

Money is typically drawn down in stages after monitoring surveyor inspections confirm progress on the build. This ensures the loan matches the pace of construction.

In addition to interest, costs may include arrangement fees, valuation fees, legal fees and monitoring surveyor fees. A broker will outline all expected charges at the outset.

Repayment is usually made in full once the project is refinanced with a long-term mortgage or when the completed units are sold.