Development finance is short-term funding for building, converting or substantially refurbishing property. It is designed around a project rather than a home you live in — released in stages as the work progresses, and repaid when you sell or refinance.
Who it is for
Property developers and investors funding ground-up builds, conversions or heavy refurbishments — from a single unit to larger schemes.
How it works
- Staged drawdown: funds are released in tranches against build milestones, so you only pay for what you have drawn.
- Land and build: lenders typically fund a proportion of the land cost plus the majority of the build costs.
- Interest: usually rolled up and settled at the end rather than paid monthly, which protects cash flow during the build.
- Exit: the loan is repaid on completion — either by selling the finished units or refinancing onto a term mortgage.
What lenders look at
Your experience, the strength of the scheme and its costings, the projected end value (Gross Development Value), and a credible exit. A clear plan makes for sharper terms.
How we help
We compare development and specialist lenders to structure funding around your project and your exit — and can line up the bridging or term finance that follows.
Frequently asked questions
How much can I borrow with development finance?
Lending is usually based on the project’s costs and end value (GDV) rather than a simple loan-to-value — typically a proportion of the land cost plus the majority of the build costs. We work the numbers for your scheme.
How is development finance repaid?
On completion, by selling the finished property or refinancing onto a longer-term mortgage — this is the “exit”. Lenders want to see a credible exit before they lend.
Do I need development experience?
It helps and can improve terms, but options exist for first-time developers — the strength of the scheme and the exit matter most.
Talk it through: contact our team to discuss funding for your project.
FCA Authorised
200+ 5-star Google Reviews
Spelthorne Business Awards 2026 Finalist (2025 Runner Up, Best Business in Staines and Laleham)
Speak to Mohit Mehra | 07915 577777
Some forms of development finance are not regulated by the Financial Conduct Authority.