Development Finance 

Development Finance Available To Help You Kick-Start Your Next Project.


Development Finance applications are assessed on a case by case basis, based on the strength of the application with the interest usually rolled into the loan.

Finance Your Projects

We can arrange funding from £50,000, with no upper limit.

Helping Your Development Needs

Overview of Development Finance

Development finance works differently to traditional mortgages. It is a type of funding used to finance the construction, conversion or heavy refurbishment of buildings. The loan is usually set up as a short-term loan to fund the project only during the build. Usually, lenders assess the value of the property and then offer a loan based on that (GDV) and the borrower’s eligibility.

With access to a multitude of lenders across the development finance market, we know one size doesn’t fit all and ensure you receive suitable advice and the best possible terms for your project.

We can arrange funding from £25,001 with no upper limit. Development Finance applications are assessed on a case by case basis, based on the strength of the application, with the interest usually rolled into the loan.

Take On Larger Projects

Utilising Development Finance means that you can put far less of your money into a project. Depending on the type of development, your experience and the Gross Development Value (GDV), it is not uncommon that you will only have to put in 10% of the cost of the project. This means your funds can be used elsewhere as other opportunities arise and you are far less committed to the project financially. As the saying goes, it’s not a good thing to have all your eggs are in one basket, so by taking advantage of the finance options available to you allows for a more diversified investment portfolio. 

    Can I Access This Funding As A First Time Developer?

    The short answer is Yes, we can arrange funding for first-time developers. Although many lenders will only look work with experienced developers, there are still some affordable options out there for those wanting to take their first steps into the industry.

    When looking for funding as a first time developer, the experience of your “Power Team” around you is of the utmost importance and will be closely scrutinised in order to assess the viability of a project.

      What Are The Costs Involved With Development Finance?

      Due to the complex nature of developments, these loans typically come with a number of fees listed below.


      The biggest cost associated with the loan is the interest charged by the lender. Rates start from 3.95% –  low rates are typically associated with the lowest risk applications,  which means ones with a solid contribution from the developer, along with a very strong track record.

      Although interest tends to be the largest cost, simply choosing the lowest rate isn’t always the best option. The total cost of the facility must be taken into account and consideration must be given to all fees. Sometimes a very low rate product will work out more expensive than another product with a higher rate, but more favourable fees.

      Arrangement Fee:

      This is the fee charged by the lender for arranging the facility. This is typically added to the total loan amount and repaid at the end of the loan.

      Exit Fees

      Exit fees are often charged at the end of the loan when you refinance or sell the development, usually as a percentage of either the loan amount or gross development value. This is usually paid off at the very end of the loan when you refinance or sell the completed development.

      Valuation Fees

      The lender will appoint a RICS surveyor un order to undertake a survey to assess pre & post development valuation (GDV).

      They will also provide comment on the current level of demand for the proposed finished properties and the likely time needed to effectively market and sell them.

      Quantity Surveyor (QS) Fees

      In order to ensure the project is going according to plan, the lender will appoint a quantity surveyor (QS). They will provide commentary around your development costings and schedule of works. Once these have been agreed, this will become the basis for your drawdown schedule.

      During the build, the QS will then visit the site periodically to ensure that the build is on track.

      Drawdown Fees

      Development finance is released in stages known as tranches, each time a drawdown is taken, fees may become payable. 

      How Do I Repay My Development Finance?

      A development loan is usually repaid on completion of the properties by way of sale or re-finance on to a buy-to-let or commercial mortgage.

      Although this is usually the case, some funders also will consider refinance to development exit finance if the sale or re-finance of the properties is delayed

      Start Your Development Finance Application Today

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      11 Mallard Court, Mallard Way, Crewe CW1 6ZQ