DEVELOPMENT FINANCE
Development Finance Broker: Funding for Builds, Conversions and Refurbishments
Whether you are building two houses or converting a commercial building into flats, the lender you choose decides how much you can borrow, how much cash you need and how smoothly the money arrives. We match your scheme to the lenders that want it.
Initial consultation free · CeMAP-qualified advice · UK-wide · See a recent conversion we funded
Based in Derby, we work with developers across the UK.
Lenders back the scheme first, then the developer
A development lender is really asking three questions. Do the numbers work, can this team build it, and how will the loan be repaid? We help you answer all three before a lender sees your case, then go to the lenders whose appetite fits your scheme size, property type and experience.
Talk through your mortgage options
Tell us about your plans and circumstances. Your initial consultation is free.
What we fund
How lenders work out how much you can borrow
| Measure | What it means | Typical range |
|---|---|---|
| Loan to cost (LTC) | Loan as a share of land plus build costs | Often 65% to 90% |
| Loan to GDV | Loan as a share of the finished value | Often 60% to 70% |
| Land funding | Share of the site price paid on day one | Varies by lender and planning status |
| Build funding | Released in stages after each surveyor visit | Often up to 100% of build costs |
| Interest | Charged monthly on what has been drawn, usually added to the loan | Priced on risk and experience |
The lower of the loan to cost and loan to GDV limits usually decides your facility. That is why two lenders can offer very different amounts on the same scheme, and why comparing them matters.
Development finance calculator
See how the numbers work for your scheme before you speak to a lender. The figures below are an example you can change.
DEVELOPMENT FINANCE CALCULATOR
Check your loan to cost, loan to GDV and profit
Enter your scheme figures. The rate and fee are example figures only, so change them to anything you have been quoted. This is an illustration, not a quote.
A worked example
Illustration only. A developer buys a site for £400,000 with planning for four houses. Build costs are £800,000 and the finished value is £2,000,000, so total costs are £1,200,000. A lender funding 60% of the land and 100% of the build lends £1,040,000, about 87% of cost and 52% of GDV. The developer puts in £160,000 towards the land, plus fees, interest that is not rolled up and a contingency.
A recent case
A disused commercial building converted into six flats. Our client bought a disused commercial building and secured planning permission to convert it into six flats. He needed £300,000 to buy the building and a further £450,000 for the conversion works, £750,000 in total. Once the flats were finished, the finance was repaid with a multi-unit block mortgage over the whole building, so the client kept the flats as a rental investment.
Shared with no personal details. Every case is different and terms depend on the lender.
What lenders want to see
- Planning permission in place, or a clear route to it for land-only funding.
- A development appraisal showing costs, GDV, contingency and profit.
- Build costs from a contractor or quantity surveyor, with a schedule of works.
- Your team: the contractor, architect and any project manager, and their track record.
- Your experience: past projects, even small refurbishments, help.
- The exit: sale prices backed by local evidence, or a refinance plan if you are keeping the units.
- Warranties and insurance: structural warranty for new homes and site insurance.
First-time developer?
You can still get development finance. Lenders that back first-time developers usually prefer smaller schemes, an experienced contractor on a fixed-price contract and a professional team around you. They may lend a little less against cost, so you need more of your own cash. A refurbishment or conversion is often an easier first project than a ground-up build. Read our development finance guide for the detail.
How it works
- Free consultation. Your site, planning, costs, end values, experience and exit.
- Appraisal check. We test your numbers the way a lender will, before you apply.
- Terms. We compare lenders on facility size, total cost and how they release funds.
- Valuation and legal work. We keep the valuer, monitoring surveyor and solicitors moving.
- Drawdowns and exit. We stay involved through the build and line up exit finance or a refinance.
Our broker fee
Your initial consultation is free. Development cases vary in size and complexity, so we confirm our fee in writing before you proceed. Lender, valuation, monitoring surveyor and legal fees are additional.
Development Finance FAQs
What is development finance?
A short-term loan to buy a site and pay for building work, released in stages as the work is done. It is repaid when the finished homes or units are sold or refinanced onto a longer-term mortgage.
How much can I borrow for a development?
Lenders look at two limits. Loan to cost is the loan as a share of land plus build costs, often 65% to 90%. Loan to GDV is the loan as a share of the finished value, often 60% to 70%. The lower of the two usually sets your maximum.
What is GDV?
Gross development value, what the finished scheme is expected to be worth. A valuer sets it at the start, and lenders use it to cap the loan.
How much deposit do I need for development finance?
Most lenders fund part of the land and most or all of the build, so you usually put in a share of the land price plus fees, interest you cannot roll up and your contingency. Use our calculator to see how the figures work for your scheme.
Can a first-time developer get development finance?
Yes. Some lenders back first-time developers, usually on smaller schemes, with an experienced contractor and professional team, and sometimes at a lower loan to cost. A strong appraisal and a clear exit matter even more.
How is the money released?
The land or site portion is released on completion of the purchase. The build money is released in stages after a monitoring surveyor checks the work done, so you only pay interest on what has been drawn.
Do I make monthly payments?
Usually not. Interest is normally added to the loan and repaid with everything else when the units are sold or refinanced.
What is development exit finance?
A short-term loan that repays your development loan once the build is finished, giving you more time to sell or let the units, often at a lower rate than the build loan.
Is development finance regulated?
Development for sale or letting is usually unregulated. Building your own home to live in is a self-build mortgage, which is regulated.
Is the first consultation free?
Yes. Development cases vary in size and complexity, so we confirm our fee in writing before you proceed.
Ready to talk through your scheme?
Tell us about the site, the build and your exit. Your initial consultation is free.
Content written and reviewed by Davi Thakar. Last reviewed 26 October 2026. Development finance is secured on property. Your property may be repossessed if you cannot repay. Typical ranges are a guide only and every lender sets its own terms. This information is not a personal recommendation.