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Development Finance Comparison

Compare the latest property development finance products and apply online

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Our aim is to help you to choose the right development finance lender for your project.

Our lender comparison tool allows you to quickly compare terms and criteria from multiple lenders and apply online straight away.

Scroll down to compare development finance rates and find the right product for your project or fill in the form to talk to an expert. Alternatively, take a look through our guides or browse our available products.

Latest Development Finance Products

Product code: DF001

Interest rateArrangement feeMax LTCMax LTGDVMin-max loanMax termExperience requiredNotes
4.50%2.00%70%60%£3,000,000 – £25,000,00030 MonthsYesExit Fee On Negotiation

Product code: DF003

Interest rateArrangement feeMax LTCMax LTGDVMin-max loanMax termExperience requiredNotes
7.00%2.00%90%60%£500,000 – £20,000,00018 MonthsYesExit Fee 1% of GDV

Product code: DF004

Interest rateArrangement feeMax LTCMax LTGDVMin-max loanMax termExperience requiredNotes
8.00%2.00%90%70%£1,000,000 – £15,000,00036 MonthsYesNo Exit Fee

Product code: DF005

Interest rateArrangement feeMax LTCMax LTGDVMin-max loanMax termExperience requiredNotes
7.50%2.00%90%70%£1,000,000 – £50,000,00036 MonthsYesNo Exit Fee

Product code: DF006

Interest rateArrangement feeMax LTCMax LTGDVMin-max loanMax termExperience requiredNotes
8.00%2.00%100%65%£1,500,000 – £20,000,00024 MonthsYes
JV – Profit Share On Completion

Product code: DF007

Interest rateArrangement feeMax LTCMax LTGDVMin-max loanMax termExperience requiredNotes
7.90%3.00%90%65%£500,000 – £9,000,00024 MonthsInexperienced consideredExit Fee 1% of Loan Amount

Product code: DF008

Interest rateArrangement feeMax LTCMax LTGDVMin-max loanMax termExperience requiredNotes
8.00%2.00%90%65%£2,000,000 – £20,000,00036 MonthsYesExit Fee 2% of Loan Amount

Product code: DF009

Interest rateArrangement feeMax LTCMax LTGDVMin-max loanMax termExperience requiredNotes
9.00%2.00%100%65%£750,000 – £5,000,00024 MonthsYesExit Fee 2% of Loan Amount

Product code: DF010

Interest rateArrangement feeMax LTCMax LTGDVMin-max loanMax termExperience requiredNotes
9.00%2.00%90%80%£5,000,000 – £100,000,00036 MonthsYesExit Fee Negotiable

Product code: DF011

Interest rateArrangement feeMax LTCMax LTGDVMin-max loanMax termExperience requiredNotes
9.00%2.00%90%75%£1,000,000 – £100,000,00024 MonthsYesNo Exit Fee

Product code: DF012

Interest rateArrangement feeMax LTCMax LTGDVMin-max loanMax termExperience requiredNotes
9.00%2.00%90%50%£150,000 – £3,000,00024 MonthsYesExit Fee 1% of Loan Amount

Product code: DF013

Interest rateArrangement feeMax LTCMax LTGDVMin-max loanMax termExperience requiredNotes
10.00%2.00%85%70%£1,000,000 – £100,000,000
36 Months
Inexperienced consideredExit Fee 1% of Loan Amount

Product code: DF014

Interest rateArrangement feeMax LTCMax LTGDVMin-max loanMax termExperience requiredNotes
11.4%2.00%90%60%£150,000 – £2,000,00018 MonthsYesNo Exit Fee

Product code: DF015

Interest rateArrangement feeMax LTCMax LTGDVMin-max loanMax termExperience requiredNotes
11.4%2.00%80%65%£500,000 – £10,000,00024 MonthsYesExit Fee 1% of Loan Amount

Product code: DF016

Interest rateArrangement feeMax LTCMax LTGDVMin-max loanMax termExperience requiredNotes
11.88%2.00%90%
70%
£50,000 – £5,000,00018 MonthsYesExit Fee 1% of GDV

Product code: DF017

Interest rateArrangement feeMax LTCMax LTGDVMin-max loanMax termExperience requiredNotes
12.00%2.00%90%65%£250,000 – £5,000,00012 MonthsYesExit Fee 0.5% of Loan Amount

Product code: DF018

Interest rateArrangement feeMax LTCMax LTGDVMin-max loanMax termExperience requiredNotes
12.00%0.00%100%80%£1,500,000 – £20,000,00024 MonthsYesJV – Profit Share On Completion

Product code: DF019

Interest rateArrangement feeMax LTCMax LTGDVMin-max loanMax termExperience requiredNotes
12.90%3.00%90%75%£500,000 – £9,000,00024 MonthsInexperienced consideredExit Fee 1% of Loan Amount

Product code: DF020

Interest rateArrangement feeMax LTCMax LTGDVMin-max loanMax termExperience requiredNotes
15.00%2.00%90%65%£26,000 – £1,000,00012 MonthsNoExit Fee 1.25% of Loan Amount

Product code: DF021

Interest rateArrangement feeMax LTCMax LTGDVMin-max loanMax termExperience requiredNotes
21.00%2.00%100%65%£500,000 – £10,000,00012 MonthsYesJV – Profit Share On Completion

How we help you to secure the lowest rates

Using our property development comparison tool couldn’t be simpler. Follow our five step process below to secure the lowest rates on your next project.

1Compare lenders, finding the most suitable option for your scheme and apply online.
2Your development finance application completes, and your funds can be drawn down.
3One of our experienced advisers will cross-check your application to ensure your project meets the lenders criteria fully. While checking the application, they will double check the application to ensure the chosen property development loan is the most suitable for your needs.
4All required documents will be requested and the full application is submitted to the lender.
5We help you throughout the application process to ensure everything runs smoothly. Should any issues arise, we will be on hand to offer advice and support as needed.

Who can apply?

Applications for property development loans are usually made in the name of an SPV Ltd. Company. This is a company set up solely to deliver the specific project.

Applications can be made in sole names, LLPs or Ltd. companies.

Regardless of the structure of the application, lenders will generally look at the experience, financial situation and history of the applicants/people behind the company. Usually, personal guarantees are required as additional security for the lender.

How much can I borrow?

We offer development finance from £50,000 with no maximum. Most lenders state set maximums but are willing to lend more than this for a particularly strong scheme.

If your loan is particularly large, enquire online now and one of our property development experts will talk through your requirements in full.

What are the next steps once my application is approved?

Once the lender is happy with your project, you will have to wait for the following to take place prior to completion:

  • Lender site visit
  • Completion of the legal work
  • Valuation of the site
  • Credit committee approval

Repaying your property development loan

Repayment of your loan is usually achieved through one of the following three routes:

  • Sale of the site
  • Refinance to a developer exit product whilst the site is sold
  • Refinance to a term loan

Whichever route you are planning, it is important that your exit strategy is clear upfront. Lenders will want to make sure you know exactly that your plan is secure.

If you’re planning to refinance and hold the properties, inform your development finance consultant upfront. They will be happy to give you an initial overview of likely costs to help you in projecting future income.

Having the exit lender tied up upfront will help your application as it shows the lender that you are prepared, and all bases are covered.

Development finance for overseas applicants

We can fund UK property developments for overseas applicants. Applications can be for foreign nationals, expats and can be agreed even if the applicant has no ties to the UK. The applicants would usually have to set up an SPV Ltd. Company to purchase the property and complete the transaction for the loan to be agreed.

As this would be classed as a very specialist transaction, discussing your circumstances with one of our experts prior to application would be advised.

How do I compare offers from different lenders?

The process of comparing offers from multiple lenders can be more complex than with other lending products such as residential or commercial mortgages.

This is because each lender has their own names for different types of fee and may even express interest in different ways.

Some lenders will express the interest as an annual figure, while others will use a monthly amount.

Equally, some lenders will charge exit fees – some based on the loan amount and others on the GDV (gross development value).

As such, when comparing lenders, the simplest way to calculate the total cost where all fees and interest are rolled up is to deduct the net loan from the gross loan. This will give you the total borrowing in a transparent way that is easy to compare between lenders.

If there are fees or charges that aren’t added to the loan, simply add them to the figure mentioned above to give a true cost.

It is also very important to check how much money will be released upfront and how the stage releases will be managed. This can have a significant impact on your cashflow.

How does development finance compare to other types of finance?

This type of finance largely stands alone for its intended purpose. The main comparisons can really be made with only a handful of financial products.

Bridging loans – these loans can be used to fund total refurbishment of a property, which gives some crossover to property development finance. When undertaking heavy refurbishment with an element of new build (extending the footprint) a comparison of both products should be made. Generally development finance should work out slightly cheaper in this situation.

Commercial mortgages – these mortgages can be used once your property has been given practical completion sign-off. Usually, the rate charged on a commercial mortgage will be far lower than a development loan. As such, it would generally be advised to switch to a commercial mortgage ASAP once your build is complete.

Mortgages/buy to let mortgages – these work in much the same way as a commercial mortgage. They are the ideal solution to repay your development loan once practical completion has been granted and would usually be cheaper. Carrying out building work using these products would usually break the mortgage conditions however, so they aren’t an option during the build.

How do I secure the best possible rates?

As a lot of development finance applications have their pricing tweaked depending on the perceived risk of the application, there are a number of ways you can improve you pricing.

As experienced experts, we will always work with you to ensure the best possible terms are achieved, but there are things you can do yourself to help. These include:-

  • Ensuring that your development CV is completed to a high standard – detail is key.
  • Make sure that your schedule of works and costs are accurate and realistic.
  • Do your research on proposed sales, liquidity of the asset is key for lenders.
  • Ensure your credit history is as strong as possible, consider repaying any missed payments, defaults and CCJs before applying.

Apply online now

Select the most suitable lender for your project and apply online now to start saving money. If you’re not sure which product would be best for you, call us today on 01922 620008 or enquire online. We can talk your project through and help you to secure the lowest rates for your project.