Development Finance

Loans From £100,000 to £50m

Development Finance can be used for... Building a house from scratch


Property Development Finance is becoming more common as more short term lenders enter the market and yet, this is despite the fact that not one single high street bank or building society offers development finance.

The reason for this is because it is considered to be the riskiest of all the property finance products, even more than a land with planning permission bridging loan. The risk tends to be higher for the ones lending the money than it is for the borrower.

However, there is a safety net for lenders in the sense that development finance is structured differently than say a bridging loan or commercial mortgage.

On a development finance deal, the money for the project isn’t released all at once…It is ‘dripped’ to the borrower in stages but only after the work has been done.

You will find more information in the FAQS below.

The Finance Business Commercial Mortgage Broker

We are the ‘goto’ finance broker for property professionals throughout the UK looking to fund residential, commercial & industrial property.

Our Development Finance Summary:

  • Heads of Terms from Lenders produced  the same day you apply
  • Development Finance from £100,000 to £50m
  • Monthly interest rates from just 0.69%
  • Loans available on residential, commercial and industrial properties
  • We can also fund farms, farmland, agricultural land in England, Wales and Scotland
  • Industrial units and industrial estates in England, Scotland and Wales
  • Land with or without planning – FOR DEVELOPMENT SITES – Land must have planning
  • Development Finance up to 70% of the Gross Development Value (GDV). This is the value of the property after all work has been completed.
  • Drawdowns (this is where the money is released to you in stages) is always done in arrears, meaning the work is done first and the money is then released.
  • Interest can be rolled up (paid at the end when you sell or refinance the property), deducted from the initial loan or serviced (paid monthly)
  • Joint Venture (JV) finance
  • 100% of all development costs can be funded
  • Loan terms from 3 months to 24 months
  • Portfolio bridging available if you have a number of properties that need refinancing
  • Bespoke, speedy service for large development finance above £2m

Apply For Development Finance Today

Frequently Asked Questions

What is Property Development Finance?

Development Finance is a type of funding that allows you to build a house or houses, commercial units and other structures from the ‘ground up’. It also allows you to convert buildings into something else, like offices into apartments, a church into a house or build a housing estate on land after you have gained planning permission.

Yes it is like a traditional mortgage but the major difference is, it allows toy to buy a property or land without having to worry too much about your credit history. 

You see, like a bridging loan, a development finance loan is based on the asset, in most cases property but also land. The land can be funded even if it has no planning in place (bridging loan) or with full planning which will then allow a development finance loan to used.

There are over 300 different bridging lenders in the UK (yes, 300!) but only about 30 of them offer development finance…Some are major financial institutions like banks and some are specialist lenders you may have heard of like Aldermore or Shawbrook.

However, there are literally hundreds of smaller, alternative finance lenders who generally take more risks than the big banks and this allows them to lend against unusual or unmortgageable assets.

From a bridging loan perspective, it could be buying a house at auction. It may be buying another property before you have sold your existing one or it may even be because you want to buy a piece of land that doesn’t currently have planning permission.

For development, it may be that you have seen a piece of land, designed plans with an architect and submitted a planning application to build 3 or 4 houses.

Whatever the reason, development finance can be quick and relatively simple to apply for, if you know what you are doing. Lenders can be great to deal with when the application is packaged and presented to them perfectly but they can also be a nightmare if they feel the loan application looks amateurish.

How much can I borrow with Development Finance?

You can borrow anything from £100,000 right up to £50m usually. Of course, some brokers will make out that you can borrow more but those lenders that do offer that are very few and far between and the process can take many, many months. 

Do banks offer Development Finance?

If only! Everyone asks this question but the simple answer is no, they don’t. The usual excuse is that offering development finance is riskier than offering a residential mortgage for example and we understand that.

However, if you choose the borrower carefully, the quality of the asset or security is good and you do your usual lender due diligence, then there is absolutely no reason at all why banks and other high street lenders shouldn’t offer property development finance.

Can you fund Modular Construction development?

Yes. Modular construction (also known as a Method of Modern Construction/MMC) is becoming increasingly commons because it is fast and economical. Full details here on our special Modular Construction product.

Is Development Finance expensive?

Compared to a normal mortgage then yes it is.

But you have to remember…These are risky products for lenders. Yes, if it goes well then both the borrower and the lender can earn a LOT OF MONEY. However, if they get the deal wrong then both the lender and borrower could be in a lot of trouble.

Do you charge broker fees?

Nope. We are professional mortgage brokers. We know and understand bridging finance, commercial mortgages and development finance inside out.

So if you want to work with us, you are serious then all is good and we will not charge a broker fee. 


Latest Property Development Finance News

We have added two new long term commercial lenders to our panel of Modular Housing Construction finance.

A simple land with planning loan for £825k approved this morning in Formby along with a ground up development finance deal for £1.9m over 18 months.

We have successfully funded our 3rd land with planning bridging loan this week. More details at

Development finance rates from 0.68% pm, even if you have no experience of 'ground up' development projects #thefinancebiz #developmentfinance

Interesting property development finance deal for an overseas borrower this week. The loan was for £3.83m and involved 7 different properties...#developmentfinance #commercialmortgages

Modular construction finance is available in both short term (bridging) and long term lending (commercial mortgage)

Joint Venture Property Finance is not as difficult as you may think. Here at The Finance Business, we are not only commercial mortgage experts, we are also JV Finance specialists too #jvfinance #jointventurefunding #commercialmortgages

Still receive a lot of traffic to the Ultimate Guide to Liverpool Commercial Mortgages

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