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Development finance
We will get you the best development finance deal from a wide range of UK lenders.
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Development finance (June 2026 update)
Current rate environment
Many developers have construction work about to begin, but if you are yet to secure funding, now is an excellent time to call us.
In contrast with other financial interest rates that are vulnerable to current overseas conflict, development finance interest rates have come down, so it is a great time to apply. The added benefit is that activity with the lenders is steadier and therefore service levels are good.
At the other end of the spectrum, if your project has over-extended your existing development finance repayment date – or is about to, we can help you with exit finance to tide you over. Whatever your requirement, get in touch today.
Funding
We understand that build schedules are time-sensitive. We provide specialist lender terms tailored to your project, and as long as any required planning permission is in place by completion, we can start the search for a deal right away.
2026 exit certainty
In today's volatile landscape, a build is only as good as its exit. We can help you with long term borrowing to pay off your development finance at project completion.
Versatile criteria
Access a specialist panel offering borrowing up to 70% Gross Development Value (GDV) and 90% Loan to Cost (LTC). We handle ground-up builds, heavy conversions, and multi-unit schemes in personal name, via limited company and complex corporate structure applications.
Secure your 2026 development funding today.
Can I get development finance?
Development finance can encompass ground-up builds and property renovations.
You can get development finance with or without experience. If you are taking on a ground-up build and don’t have direct experience yet, lenders will expect you to be using a contractor to do the work. The criteria for borrowing to do renovations is more flexible.
You can borrow up to 70% of the gross development value, which is the value of the property, once works are complete. You will need to provide a schedule of works or development appraisal to demonstrate to the lender what your plans are and the costs involved.
Factors that may impact you getting development finance
- Some types of adverse credit
- Not having enough money for a deposit
- Lack of similar project experience
If you have questions, chat to our advisors on live chat, via the phone, or get a call-back, we're here to help.
Today's development finance rates
The variables involved in development finance, mean our advisors will need the details of your case, to give you an interest rate based on today’s lender options. Enquire online now.
We work with a range of development finance lenders, including:
Eligibility for development finance
- You can be a first time buyers or experienced investor
- You must be at least 18 years old
- Deposits for ground up builds from 30-45% of the site/land
- Upper age limits at application are flexible
- Low personal incomes are accepted
- Property, pension and employment income is OK
Ready to get started?
Your personal advisor will call. Direct lines start 01603. Get today's rates, help, or apply. Lender terms provided in as little as two hours!
What is development finance?
Development finance is a short term loan used to either purchase a site for a development, cover the costs of building the development, or both. It can also cover renovation projects that might make use of bridging loan products.
Ground-up builds can take many shapes and forms, but the ultimate goal is to sell or rent the property, or properties, for profit.
Unlike a residential or traditional buy to let mortgage, development finance requires a bespoke financial solution tailored to your project. Development finance rates vary, depending on your project and the lender you choose.
Whether your project is small or large, our development finance team can find the right lender for you from our range of specialist lenders. Get in touch today!
What can I use development finance for?
You can use development finance for any property type from residential, to mixed-use/semi commercial and pure commercial premises. You can also borrow for a range of reasons:
- Renovations
- Conversions
- Refurbishment
- New builds
The scope of your project can include anything from a single unit (one property) to a large multi-unit development comprising multiple property types.
How much can you borrow with development finance?
You can borrow from £30,000 with no real upper limit as long as you have a clear plan to repay the loan and do not exceed lender loan to value thresholds. Each development finance solution is bespoke and will vary depending on the lender you choose to work with.
For ground-up builds, the maximum loan to value is typically around 70% of the end value of the property being built. You will need a deposit of at least 30-45% of the initial purchase price of the land.
For renovations, the maximum loan to value is 75% of the property value, so you will need at least 25% as a deposit.
How long can you get development finance for?
Terms of a development loan vary, but are typically between 12 and 24 months. This, like many factors of development finance, is dependent on the project the finance is required for.
If you are borrowing for renovations the term can be from 3-18 months.
Some of the lenders on our panel charge exit fees. If this is something you want to avoid, tell your advisor when they are discussing your case with you, before they research products for you.
How long does it take to get development finance?
A development loan application usually takes around 8 weeks to be processed by a lender, but it can be quicker, providing any documents promptly and efficient solicitors will help with this.
With some larger projects, the release of funds is split across a series of drawdowns, subject to a monitoring surveyors sign off.
The lender will instruct a surveyor to go and inspect the works, to check that everything is proceeding on track with the proposal. The surveyor would collate a report and then the funds would be released following an assessment of the progress by the lender.
Why choose Commercial Trust?
Apply with ease by phone
It couldn't be easier to secure a mortgage with our expert advisors. Ask all your questions and arrange an application on the phone from your sofa.
World class customer service
We'll find you a great deal and take all the admin work off your shoulders, so you can relax while we get your mortgage completed. All the while giving you progress updates.
Lender decision in 2 hours
By contacting you by phone and email you can get help more quickly than in-person services. It's possible to get you a lender decision in principle in as little as two hours after our call.
We can help you with...
- Purchasing or refinancing
- Development finance for ground-up builds
- Conversions from commercial to residential
- Borrow up to 70% of the gross development value
- Refurbishment of uninhabitable property
- Borrowing funds for up to 36 months
- Investing in personal name
- Investing via a limited company or Special Purpose Vehicle
- Investing via a Limited Liability Partnership
- Serviced interest (paid monthly)
- Retained interest (paid at term end)
- Long-term refinancing options
Costs involved in development finance
Lenders may charge you for the valuation conducted on your property. They often also charge a product fee, sometimes this can be added to the mortgage.
You will need a conveyancing solicitor who will charge fees. Read our guide to choosing a conveyancing solicitor.
We charge a broker fee for our work. You pay in two parts. A booking fee, once we have found you a mortgage deal, at application. The majority of our fee is paid at completion of the mortgage.
Every development finance loan comes with monthly costs based on the interest rate the lender charges. These are paid on either an interest-only or capital repayment basis.
How to apply for development finance
1
Tell our advisors about the property you are investing in, your needs and circumstances. If you have credit concerns, chat to us about them, so we can put you with the right lender.
2
Your advisor will find the best possible deal from a search of thousands of products. They will get you a lender decision in principle, this requires a soft credit search (occasionally it is a hard credit search).
3
Your advisor will call to discuss the product they have found for you. You will be presented with one mortgage that is the best match for all your needs and offers you the most cost effective option.
4
On your instruction, your advisor will submit your mortgage application. Your account manager then does all liaison and administrative work to complete the deal, whilst keeping you updated at every step.
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Frequently asked questions
Most lenders will cap the amount they are willing to lend at around 70% maximum of the end value of the project. However, if you do not have a deposit in cash, you may be able to borrow against other property you own to raise a deposit. Speak to a specialist broker like Commercial Trust to investigate your options.
You can use cash or borrow via a development finance loan to fund property development in the UK. You can borrow up to 70% of the expected value of the property, once it is complete. This is called the Gross Development Value (GDV). If you plan to live in the property once it is built, you will need regulated development finance, which is subject to consumer protections offered by the Financial Conduct Authority. If you let out or sell the property once it is built you are expected to understand development finance and so these products are “unregulated”, i.e. not subject to FCA consumer protections. A specialist broker like Commercial Trust can help you with unregulated development finance.
Yes, banks and specialist lenders offer loans specifically for property development. In the financial industry, property development finance means building a property from scratch, so if you just want to do some renovations, a bridging loan is more appropriate.
Development finance interest rates are very specifically tailored to the nature of the project. If you are building one or two properties, your funding needs will be radically different to a property developer building a 200 dwelling housing development, or a large commercial premises. As a result, you tend not to find development finance interest rates published online by lenders. To understand what the rate and costs involved in your project, and to ensure you are getting a competitive deal based on a search of a wide choice of lenders, a specialist broker like Commercial Trust can help.
Securing development finance as a first-time developer can be challenging, but it is possible. Fewer lenders work with first-time developers than those with experience. A small ground up build of one to three units, is a good place to start. You may be able to secure funding for larger projects by partnering with an experienced developer, but lender criteria varies so much that you cannot guarantee this. The best approach is to build a portfolio of experience in order to secure funding for more complicated projects. When you are ready to invest, talk to a specialist broker like Commercial Trust who can help you get development finance.
A development finance lender will calculate the amount they will lend you based on the anticipated value of the property being built, once it is complete. This is called the Gross Development Value (GDV). A lender will typically loan up to 50% of the value of the land on the day you buy it, and cover the entire cost of the works to build the property, as long as the loan to buy the land plus the loan to do the works is not more than the GDV. Use the free development finance calculator on this page to get an illustration of costs and profit.