Development Finance Mortgage Brokers | Tailored Funding for Your Next Project. A development finance mortgage helps property developers, investors, and builders fund construction or refurbishment projects. Whether you’re building new homes, converting a property, or completing a major renovation, development finance provides staged funding aligned with your project timeline.
Unlike traditional mortgages, development finance releases funds in stages as the work progresses. This structure supports cash flow, reduces risk, and ensures funds are available when milestones are reached.
Understanding development finance requires specialist advice. A qualified development finance mortgage broker will assess your project’s viability, compare lender criteria, and secure the right deal for your goals. With access to specialist lenders beyond the high street, they can arrange tailored solutions for both small and large developments.
Could development finance be right for your next project? Speak with one of our experienced advisers today to explore your funding options and get expert guidance from start to finish.
Understanding Development Finance
Development finance is designed for individuals or companies undertaking property construction or conversion. The loan is typically short-term, lasting 6 to 24 months, and is repaid once the project is sold or refinanced.
For example, if your site is valued at £500,000 and your estimated build cost is £800,000, lenders might offer up to 70% of the land value and 100% of the build cost, released in agreed stages after site inspections.
Development finance brokers play a crucial role in structuring deals that meet both lender and borrower requirements.
Why Consider Development Finance
| Benefit | Description |
|---|---|
| Access Large Project Funding | Finance multi-unit developments, conversions, or large-scale refurbishments without tying up all your capital. |
| Stage-Based Drawdowns | Funds are released as construction progresses, improving cash flow and aligning with project milestones. |
| Tailored Loan Terms | Each loan is structured around your project type, timescale, and exit strategy. |
| Short-Term Flexibility | Finance typically runs for 6 to 24 months, allowing repayment after sale or refinance. |
| Competitive Interest Options | Rates reflect project risk and experience, often better than unsecured borrowing. |
Role of a Development Finance Broker
Development finance brokers act as the bridge between you and specialist lenders. They assess project details such as planning permissions, build costs, developer experience, and exit plans before recommending suitable lenders.
Their expertise ensures:
Applications are structured correctly for faster approval
You access the most suitable lenders for your project type
Funding aligns with build phases and cash flow requirements
By working with a broker, you gain access to lenders not typically available to the public. The broker also negotiates terms and monitors fund releases throughout your project.
Who Uses Development Finance?
Property developers planning new builds or conversions
Investors refurbishing residential or commercial units
Businesses funding multi-phase projects
Landowners looking to maximise property value before sale
Alternatives to Development Finance
While development finance suits many projects, other options may be considered depending on your goals:
Bridging Loans – For short-term purchases or auction property completions before development starts.
Commercial Mortgages – For long-term financing of income-generating properties after completion.
Joint Venture Funding – Where investors provide capital in exchange for profit share.
Mezzanine Finance – Secondary funding that complements senior debt to increase total available capital.
Browse Our Development Finance Mortgage Brokers
Suggestions Inspired By Your Recent Activity
FAQ: Development Finance Mortgage Brokers
| Question | Answer |
|---|---|
| What is development finance? | Development finance is a short-term funding option designed to help property developers and investors finance the purchase and construction of residential or commercial projects. It covers land acquisition, building costs, and sometimes professional fees. |
| Who can apply for development finance? | Property developers, experienced investors, and limited companies can apply. Some lenders also consider applications from first-time developers with strong business plans and professional support. |
| How much can I borrow with development finance? | Most lenders offer between 60% and 70% of the gross development value (GDV) or up to 90% of the total project costs, depending on experience, location, and the project’s risk level. |
| What can development finance be used for? | It can fund residential developments, commercial conversions, new builds, or renovation projects. Some lenders also support mixed-use and semi-commercial schemes. |
| How is development finance different from a bridging loan? | A bridging loan is often used to buy property quickly or cover a short-term gap, while development finance is structured in stages and linked to project milestones such as land purchase, construction, and completion. |
| How are funds released during a project? | Funds are typically released in stages known as drawdowns. After each phase of work, a valuer inspects the site before the next tranche of funding is released. |
| What is the typical term for development finance? | The average term ranges from 6 to 24 months, depending on the size and scope of the project. Longer-term options may be available for large-scale or phased developments. |
| Do I need to provide security? | Yes. Most lenders require the property or land as security. Personal guarantees and debentures are also common, particularly for limited companies. |
| Can I get 100% development finance? | Full funding is rare, but possible if additional security or joint venture arrangements are in place. Lenders may fund 100% of build costs if the land is owned outright. |
| Why use a development finance mortgage broker? | A specialist broker understands lender criteria, negotiates competitive terms, and helps structure deals to suit cash flow and exit strategy. They also save time by managing paperwork and lender communication. |
| How do I find a development finance broker near me? | Use Connect Experts to search by location, language, and area of expertise. You can connect with brokers across the UK who specialise in development and bridging finance. |