Whether you’re planning a new build, refurbishment, or large-scale development, the right funding can move your project forward with confidence.
Complete our quick form to get matched with lenders offering tailored development finance solutions for your project.
Development finance is a type of loan used to fund residential or commercial development projects. These development finance loans are typically short to medium term and are structured to align with the build process.
Property development finance is commonly used for:
New homes and new-build projects
Residential development and commercial development
Refurbishment and renovation
Conversion of existing buildings
Each development loan is assessed individually, with lenders considering the value of the property, gross development value (GDV), and overall project viability.
Development finance provides the funding needed to support property projects from initial purchase through to completion. Whether you’re planning a new build, refurbishment, or conversion, development finance can help you access the capital required to move forward.
At Commercial Mortgage Guide, we connect developers across the UK with lenders offering tailored development finance solutions. From first-time developers to experienced developers, we help you access finance suited to your project.
Development finance works by releasing funds in stages as the project progresses. Rather than receiving the full loan amount upfront, funds are released in agreed tranches based on milestones.
This structure helps manage cash flow and ensures the borrower only pays interest on the funds drawn.
A development loan is tailored to the specific business and project requirements, taking into account build costs, timelines, and exit strategy.
Before applying, you can use this loan calculator to estimate repayment costs. This helps you understand how different loan amounts, interest rates, and loan terms impact your monthly payment.
Using a calculator can provide clarity and help you assess what level of borrowing is manageable for your business.
Simply enter the amount you wish to borrow, loan term (in years), and interest rate. Please bear in mind this is a guide and what you may end up repaying.
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Residential development finance is used for building new homes, multi-unit schemes, or single unit projects. It is suitable for housebuilders and developers looking to sell or rent completed properties.
Commercial development finance supports projects such as office spaces, retail units, or mixed-use developments. These projects may require specialist underwriting depending on the type of property.
Refurbishment finance and refurbishment loan options are available for upgrading or repurposing existing buildings. This includes light refurbishment as well as heavy renovation and conversion projects.
In some cases, bridging finance or a bridging loan may be used alongside development finance to secure land or property before full development funding is arranged.
This can be particularly useful for developers needing to act quickly when opportunities arise.
Each lender will assess:
The property value and valuation report
The projected GDV (gross development value)
The borrower’s experience and track record
The strength of the exit strategy
Lenders will also consider whether the project is residential or commercial and whether it aligns with their lending criteria.
Development finance is usually structured on an interest-only basis, with repayment made at the end of the term.
To repay the loan, developers typically:
Sell completed units
Refinance onto long-term property finance
Use rental income
A clear exit strategy is essential when applying for development finance.
There are several costs associated with development finance, including:
Development finance rates and interest
Arrangement and exit fees
Valuation and professional costs
Lenders may charge fees based on the loan amount and project complexity. It’s important to understand all costs before proceeding.
Access to capital is essential for any development project. Development finance to support projects is available across England and Wales, with lenders offering flexible finance options for a range of development sizes.
Whether you are working on a single unit or multi-unit development, there are funding options available to suit your needs.
A development finance broker or intermediary can help you access a wide range of specialist lenders. Instead of approaching lenders directly, working with a broker can simplify the process and improve outcomes.
At Commercial Mortgage Guide, we act as a trusted intermediary, connecting you with lenders offering development finance tailored to your project.
We also provide finance for intermediaries looking to support their clients with development funding. Our network of lenders offers a range of specialist solutions designed for different project types.
Development finance is available to:
First-time developers
Experienced developers
Housebuilders
Businesses undertaking property projects
Each application is assessed individually based on the borrower’s knowledge and expertise, financial backing, and project viability.
Every development project is different, which is why a tailored solution is essential. Development finance loans can be structured to match timelines, costs, and expected outcomes.
A loan is tailored to ensure it supports the specific business and development goals of the borrower.
Working with a dedicated team of property finance specialists ensures you receive the right guidance throughout the process.
Our development finance team works closely with lenders to help secure development funding for projects across the UK.
Some lenders and finance providers are authorised and regulated by the Financial Conduct Authority, ensuring compliance with industry standards.
Understanding how lenders operate and the level of regulation involved is important when choosing the right finance solution.
If you’re looking to secure development finance, it’s important to work with lenders that understand your project and can provide the right financial structure.
Whether you’re undertaking a new-build, renovation, or large-scale development, access to finance is key to success.
If you’re ready to explore development finance options, we’re here to help.
At Commercial Mortgage Guide, we connect developers with lenders offering flexible development finance solutions across the UK. Whether you’re planning your first project or expanding your portfolio, we help you access the right funding.
Development finance is structured specifically for property projects, with funds released in stages as work progresses. Unlike a standard loan, it is tailored to match build timelines and project costs rather than providing a lump sum upfront.
Yes, first-time developers can access development finance, although lenders will usually assess the strength of the project, financial backing, and any relevant experience. Some lenders are more flexible if the project is well structured and supported.
An exit strategy is how you plan to repay the loan at the end of the term. This could involve selling the completed development, refinancing onto a longer-term mortgage, or using rental income from the property.
In most cases, having planning permission in place will strengthen your application and improve your chances of approval. Some lenders may consider applications without full planning, but terms may be more restrictive.
We can also help find commercial finance options with other services
Finance for purchasing or refinancing commercial property.
Short-term property finance to bridge the gap
Funding for property development, from new builds to refurbishments
