Find development finance mortgage brokers who can help with property development funding, staged drawdowns, lender criteria and exit planning.
Development finance is a short-term funding option used for property development projects. It can support new builds, conversions, heavy refurbishments, mixed-use schemes and larger renovation projects where funds are usually released in stages as the work progresses.
A development finance mortgage broker can help you understand which lenders may consider your project, how much funding may be available, what documents are needed and how the finance could be structured around your build schedule.
Use Connect Experts to search for development finance mortgage brokers across the UK. You can compare advisers by location, language, gender and area of expertise before choosing who to contact.
Development Finance at a Glance
Development finance is usually designed for property projects where the loan is linked to the build, conversion or refurbishment journey.
It may be suitable for:
- Ground-up residential developments
- Commercial to residential conversions
- Heavy refurbishment projects
- Mixed-use developments
- Semi-commercial property schemes
- Small housing developments
- Multi-unit apartment schemes
- Projects where funds are needed in stages
The loan is normally repaid when the completed property is sold or refinanced. This exit strategy is a key part of the lender assessment.
Development finance is different from a standard mortgage because the lender focuses heavily on the project itself. They may assess the site, planning status, build costs, gross development value, borrower experience, professional team, contingency, funding structure and exit route.
What Does a Development Finance Mortgage Broker do?
A development finance mortgage broker helps borrowers find and structure funding for property development projects.
They may help by:
- Reviewing the proposed development
- Checking lender appetite before an application is submitted
- Explaining likely loan to cost and loan to GDV options
- Helping prepare a clear development finance application
- Comparing specialist development finance lenders
- Supporting communication between the borrower, lender, valuer and solicitor
- Helping structure staged drawdowns around the build schedule
- Reviewing the proposed exit route
- Explaining costs, fees, risks and lender conditions
A broker does not lend the money directly. Their role is to help you approach suitable lenders and present the project clearly.
This matters because development finance is often assessed manually. Two lenders may view the same project differently depending on location, planning status, borrower experience, build complexity, loan size and exit strategy.
Who this page is for
This page is for people looking for development finance mortgage brokers in the UK.
You may be:
- A property developer planning a new build
- A landlord converting or improving a property
- A limited company buying land for development
- A builder seeking project finance
- An investor planning a refurbishment before sale or refinance
- A landowner looking to improve or develop a site
- A business owner involved in a mixed-use or commercial project
- A first-time developer who needs guidance before approaching lenders
If your project is already complete and you need long-term financing, you may need to work with commercial mortgage brokers instead. If you need short-term funding before works begin, bridging loan mortgage brokers may also be relevant.
How Development Finance Works
Development finance is usually arranged around the project timeline.
The process often includes:
- Initial review of the development plan
- Assessment of land value, planning status and borrower experience
- Review of build costs, professional fees and contingency
- Valuation and possible quantity surveyor review
- Lender offer and legal checks
- Initial release of funds
- Staged drawdowns as work progresses
- Site inspections before further funds are released
- Completion of the project
- Repayment through sale or refinance
Funds are not always released in one payment. Many lenders release money in stages after the work has been checked. This helps the lender manage risk and helps align funding with the build programme.
A clear work schedule is important. Delays, cost increases or changes to the project can affect funding, so professional planning is essential.
For a deeper explanation of the process, read our development finance guide.What lenders may assess
Development finance lenders usually assess the borrower, the site and the project.
They may review:
- Purchase price or current land value
- Planning permission
- Gross development value
- Build costs
- Professional fees
- Contingency allowance
- Developer experience
- Contractor experience
- Project timescale
- Proposed loan amount
- Loan to cost
- Loan to GDV
- Exit strategy
- Credit profile
- Company structure
- Security offered
- Demand for the completed property
Lenders want to understand whether the project is realistic, affordable and deliverable. A strong application should show that costs, timelines and sales or refinance assumptions have been considered carefully.
Why use a broker for development finance?
Development finance can be difficult to compare without specialist support.
A broker can help because many development finance lenders assess cases individually. Some lenders focus on experienced developers. Others may consider smaller projects, first-time developers, different property types or complex ownership structures.
A broker may also know which lenders are more likely to consider:
- Light or heavy refurbishment
- Ground-up development
- Part-built projects
- Commercial conversions
- Mixed-use schemes
- Limited company borrowers
- Complex income
- Adverse credit
- Smaller loan sizes
- Larger multi-unit projects
- Projects needing a fast decision
Using a broker can save time because your project can be matched with lenders whose criteria are more likely to fit. It can also help reduce the risk of submitting an application that does not meet lender expectations.
Development Finance for New Builds
Development finance is commonly used for new build projects. This may include a single property, a small housing scheme or a larger multi-unit development.
Lenders will usually want to understand the planning position, build route, contractor arrangements, projected sale values and the borrower’s ability to complete the project.
A broker can help you prepare the case so the lender can assess the project clearly.
Development Finance for Conversions
Development finance may also support property conversions. This can include converting commercial property into residential units, changing the layout of an existing building or creating multiple dwellings from one property.
Conversion projects can involve planning conditions, building regulations, change of use and specialist valuation requirements. A development finance broker can help identify lenders that understand this type of project.
If the property has both commercial and residential elements, you may also want to compare commercial mortgage brokers.
Development Finance for Refurbishment Projects
Some refurbishment projects are too complex for a standard mortgage. Development finance may be considered where works are structural, extensive or linked to a clear sale or refinance plan.
This may include:
- Property extensions
- Structural alterations
- Internal reconfiguration
- Modernisation before sale
- Change of use projects
- Refurbishment of uninhabitable property
- Works before refinancing onto a longer-term mortgage
If your borrowing is secured against an existing property and you are not undertaking a development project, second-charge brokers may be more relevant.
Development Finance Costs and Repayment
Development finance costs vary by lender, project and borrower profile.
Costs may include:
- Interest
- Arrangement fees
- Valuation fees
- Quantity surveyor fees
- Legal fees
- Broker fees
- Exit fees, where applicable
- Monitoring fees
- Extension fees, if the project overruns
Some development finance interest may be rolled up rather than paid monthly. This means interest is added to the loan and repaid at the end. Whether this is available depends on the lender and the project.
The exit route is one of the most important parts of the application. Common exits include selling the completed development or refinancing into a longer-term mortgage.
Documents You May Need
Documents vary by lender and project, but you may be asked for:
- Proof of identity and address
- Details of the borrower or company
- Planning permission
- Site details
- Purchase contract or title information
- Schedule of works
- Build cost breakdown
- Development appraisal
- Professional team details
- Contractor details
- Gross development value evidence
- Cash flow forecast
- Asset and liability statement
- Evidence of deposit or equity
- Exit strategy
- Previous development experience
- Building regulations information, where relevant
Preparing documents early can help reduce delays.
Development Finance Broker vs Direct Lender
A direct lender can only offer its own products and criteria. A development finance broker can compare different lenders and help identify which options may fit the project.
This is useful because development finance is not always straightforward. The best route may depend on project size, location, build stage, planning status, borrower experience, security and exit strategy.
A broker can also help explain the difference between senior debt, mezzanine finance, bridging finance and longer-term refinance options. This can make the funding journey clearer from the start.
When Development Finance May Not Be Suitable
Development finance may not be suitable for every borrower or project.
It may not be right if:
- The project costs are unclear
- Planning permission is uncertain
- The exit strategy is weak
- The borrower cannot provide enough equity
- The build schedule is unrealistic
- The property is already suitable for a standard mortgage
- The project risk is too high for available lenders
A broker can help you understand whether development finance is worth exploring or whether another option may be more appropriate.
Alternatives to development finance
Other finance options may be considered depending on the project.
Bridging loans
A bridging loan may be used for short-term property purchases, auction purchases or time-sensitive transactions. It may also help before development finance begins.
Compare bridging loan mortgage brokers if you need short-term secured finance.
Commercial mortgages
A commercial mortgage may be suitable when the property is complete and used for business or investment purposes. It is usually a longer-term option.
Compare commercial mortgage brokers if you need funding for commercial property.
Second charge mortgages
A second charge mortgage may allow borrowing against equity in an existing property without replacing the current mortgage. This is not the same as development finance, but it may be relevant for some funding needs.
Compare second charge brokers if you want to explore secured borrowing against an existing property.
How Connect Experts helps you find a development finance broker
Connect Experts helps you search for mortgage advisers and specialist finance brokers across the UK.
You can search by:
- Location
- Mortgage type
- Adviser expertise
- Preferred language
- Gender
- Appointment preference
- Company or adviser name
This helps you choose an adviser who is better matched to your project and communication preferences.
Connect Experts is a mortgage adviser directory and matching platform. We do not provide mortgage advice directly. Advice is provided by the adviser or firm you choose.
Start with our ” Find a Mortgage Broker page or search for a broker by area using ” Find a Broker by Location.
Browse Our Development Finance Mortgage Brokers
The advisers shown below may be able to support clients with a Development Finance Mortgage, depending on availability and specialism. Review each profile before making contact to choose an adviser with experience relevant to your needs.
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FAQ: Development Finance Mortgage Brokers
| Question | Answer |
|---|---|
| What is a development finance mortgage broker? | A development finance mortgage broker helps borrowers find funding for property development projects. This may include new builds, conversions, heavy refurbishments and mixed-use schemes. |
| What is development finance used for? | Development finance can be used for property construction, conversions, major refurbishment, site development and projects where funds are needed in stages as work progresses. |
| How is development finance different from a bridging loan? | A bridging loan is usually short-term finance used to complete a purchase or cover a funding gap. Development finance is usually linked to construction or refurbishment and often released in stages during the project. |
| How much can I borrow with development finance? | The amount depends on the lender, project, borrower experience, property value, build costs and gross development value. Lenders may consider loan to cost and loan to GDV when assessing the application. |
| Can first-time developers get development finance? | Some lenders may consider first-time developers if the project is realistic, the borrower has a strong professional team and the application is well prepared. Criteria vary by lender. |
| Do I need planning permission for development finance? | Many lenders prefer planning permission to be in place before funding is agreed. Some may consider cases at an earlier stage, but this depends on the lender and project risk. |
| How are development finance funds released? | Funds are often released in stages. A lender or monitoring surveyor may inspect the site before each further release of funds. |
| What is GDV? | GDV means gross development value. It is the expected value of the completed development. Lenders often use GDV to help assess the loan size and risk. |
| How do I repay development finance? | Development finance is usually repaid through the sale of the completed property or by refinancing onto a longer-term mortgage. |
| Why use Connect Experts to find a development finance broker? | Connect Experts lets you search for mortgage advisers and specialist finance brokers by location, language, gender and expertise. This can help you find an adviser who is better matched to your project. |
Important Information
Connect Experts is a mortgage adviser directory and matching platform. We do not provide mortgage advice directly. Advice is provided by the adviser or company you choose.
We are an FCA-approved broker network and not a lender. Advisers may have access to a range of lenders. If a lender is introduced, commission may be received after completion. The commission amount may vary by lender and product, but it should not affect the amount you pay under your credit agreement.
A fee may be payable for arranging your mortgage. Your adviser will confirm the amount before you choose to proceed.
Your home or property may be repossessed if you do not keep up repayments on your mortgage or loans secured on it.