UK Development Finance
Small builders delivering fewer than 100 homes a year accounted for 39% of UK housing output in 1988 – by 2025, that figure had fallen to just 12%. Access to development finance is one of the most consistently cited reasons behind this decline, which is exactly why working with a broker who genuinely understands the whole capital stack, not just a single loan type, matters so much. For UK-based developers, from single conversions through to large-scale schemes, we arrange the full range of development finance.
The Capital Stack: Foundation Layers
Our Senior Debt page covers the first-charge foundation of most development projects, our Stretched Senior Debt page covers a single facility combining senior and mezzanine into one loan, and our Mezzanine Finance page covers top-up funding layered above your senior loan when your own equity doesn’t stretch far enough alone.
Specific Project Types
Our Commercial Development Finance page covers funding for commercial and mixed-use schemes, our Permitted Development Finance page covers converting existing commercial buildings into residential use under current planning rules, our Structured Property Finance page covers genuinely bespoke, complex funding structures, and our Land Finance page covers acquiring land ahead of a development itself, whether with or without planning permission in place.
Improvement and Exit
Our Refurbishment Loans page covers funding renovation and improvement works on an existing property, and our Development Exit Finance page covers refinancing a completed or near-complete scheme onto genuinely cheaper terms once construction risk has fallen away.
Starting Out
Our First Time Developers page covers what genuinely makes a first scheme fundable, worth reading given how much the SME developer sector has shrunk – lenders are consequently more selective, but a straightforward first project with the right team behind it remains genuinely achievable.
Why the Market Genuinely Favours Well-Prepared Developers Right Now
The UK development finance market enters 2026 with cautious optimism, following the volatility of 2022-2024. Lender appetite has genuinely sharpened since the second half of 2025, with over 200 active lenders now spanning high street banks, challenger banks, specialist non-bank lenders, and private credit funds. Senior debt for experienced developers currently prices from around 6.5% to 9.5% per annum, with the most competitive terms – 6.5-7.5% – reserved for well-structured schemes below 60% loan-to-Gross-Development-Value, a proven track record, and a strong location. More complex schemes, higher leverage, or first-time developers typically see 9-12%.
Why GDV, Not Current Value, Drives Everything
Unlike a standard mortgage, assessed against a property’s current value, development finance is assessed against Gross Development Value – the estimated open market value of your completed scheme. Funds are typically drawn down in stages as the build progresses, with interest commonly rolled up and repaid on completion rather than paid monthly throughout the build.
Not Sure Which Category Applies to You?
If you’re weighing up how the different layers of the capital stack genuinely fit together for your specific project, our Development Finance Explained guide covers the full journey from senior debt through to mezzanine and stretched senior structures in one place.
Getting the Right Structure for Your Project
Given how much genuinely depends on your specific scheme, your experience, and current lender appetite for your particular project type, it’s worth having a proper conversation about your full capital stack before committing to any single layer of finance. Get in touch with details of your development, and we’ll help you structure the right facility.
