Development Finance | Development loan Rates from 0.5% pm
Development Finance Solutions for Your Property or Commercial Project
From £25,000 to £300 million - Funding residential and commercial developments across the UK with competitive rates and expert guidance
Whether you're building residential homes, commercial properties, or mixed-use developments, Doulton Bridging Finance connects you with the UK's leading development finance lenders. With access to over 130 specialist lenders, we secure competitive rates and flexible terms for developers at every level.
What is Development Finance?
Development finance is a specialist short-term loan designed to fund property development projects from initial land purchase through to construction completion. Unlike traditional mortgages, development finance is released in stages as your project progresses, with interest typically rolled up until sale or refinancing.
This type of funding is ideal for property developers, investors, and builders who need capital to:
Purchase development land or sites
Fund ground-up construction projects
Convert or refurbish existing properties
Cover professional fees and build costs
Bridge cash flow gaps during development
Residential Development Finance
Funding your next residential development project has never been easier. Whether you're building a single luxury home, converting a period property into flats, or developing a multi-unit housing estate, we arrange residential development finance to match your ambitions.
Types of Residential Projects We help Fund:
New Build Homes - From single dwellings to large-scale housing developments
Apartment Conversions - Converting commercial buildings or houses into flats
Property Subdivisions - Splitting larger properties into multiple units
Refurbishment to Sell - Extensive renovations for resale
HMO Conversions - Creating houses in multiple occupation
Social Housing - Affordable housing and council-funded projects
Residential Development Finance Features:
Loan Amounts
From £25,000 to £50 million for residential projects
Loan-to-Value (LTV)
Up to 70% of Gross Development Value (GDV) or 100% of costs
Interest Rates
From 0.45% per month, depending on LTV and experience
Loan Terms
6 to 24 months, with extensions available
Exit Strategy
Sale, refinance, or long-term mortgage options
Staged Drawdowns
Release funds as construction milestones are achieved
Who Can Apply?
We work with experienced developers, first-time developers with professional support, property investors, building companies, and construction specialists. Adverse credit history is considered on a case-by-case basis.
Commercial Development Finance
Unlock the potential of commercial property development with tailored finance solutions designed for larger, more complex projects. From retail units and office buildings to industrial estates and mixed-use developments, we secure the funding you need from specialist commercial lenders.
Commercial Development Projects We Support:
Office Developments - Modern workspace and business centres
Retail Units - Shopping centres, high street shops, and retail parks
Industrial & Logistics - Warehouses, distribution centres, and industrial units
Hotels & Leisure - Hospitality venues, gyms, and entertainment facilities
Mixed-Use Schemes - Combined residential and commercial developments
Care Homes - Specialist residential care facilities
Student Accommodation - Purpose-built student housing (PBSA)
Healthcare Facilities - Medical centres, clinics, and private hospitals
Commercial Development Finance Features:
Loan Amounts
From £150,000 to £300 million for commercial projects
Loan-to-Cost (LTC)
Up to 80% of total development costs
Loan-to-GDV
Typically 60-75% of Gross Development Value
Interest Rates
From 0.5% monthly for commercial developments
Terms
12 to 36 months with flexible extension options
Professional Monitoring
Independent surveyors and QS reports for drawdown control
Specialist Commercial Finance
For complex commercial projects, we access specialist lenders who understand sector-specific challenges. Whether you need pre-let finance, forward funding, or joint venture partnerships, our commercial property experts find the right solution.
Development Finance Loan Structure
Interest & Repayment Options
Rolled-Up Interest - Interest is added to the loan and repaid at exit (most common)
Serviced Interest - Pay monthly interest charges, reducing total cost
Retained Interest - Interest reserved within the loan facility
What Lenders Look For:
Viable Development Proposal - Detailed plans, costings, and realistic timeline
Planning Permission - Approved planning or strong likelihood of approval
Experienced Team - Proven developers or professional contractors and advisors
Strong Exit Strategy - Clear plan for loan repayment through sales or refinancing
Financial Contribution - Typically 25-30% deposit or equity in the project
Professional Valuations - RICS surveyor assessments of GDV and costs
Borrower Types We Assist:
Sole traders and individuals
Limited companies and PLCs
Partnerships and LLPs
Offshore companies
Joint ventures
Property developers (experienced and first-time)
Construction companies
Property investors and landlords
Get in touch.
Get a free no obligation quote. If you’re ready to look at the options fill out our simple contact form and one of our friendly and dedicated development finance team we will contact you to get your quotes as soon as possible. If you wish to call our phone number is 0204 6211776.
Why choose Doulton Bridging Finance?
Unparalleled Lender Access
With relationships across 130+ specialist lenders including high street banks, private banks, challenger banks, and boutique funders, we find the best rate and terms for your specific project.
Development Specialists
Our team understands construction timelines, cost overruns, planning challenges, and market fluctuations. We structure loans that accommodate the realities of property development.
Whole-of-Market Broker
As an independent broker, we're not tied to any lender. We work solely in your interest to secure the most competitive development finance available.
Speed & Efficiency
Time is money in development. We provide same-day decisions in principle and can arrange funding within 2 weeks for urgent projects.
Complex Cases Welcome
Adverse credit? First-time developer? Unusual property type? We specialise in finding solutions where others say no.
End-to-End Support
From initial consultation through to completion and refinancing, we guide you at every stage, liaising with lenders, surveyors, and legal teams on your behalf.
Development Finance without planning permission
While approved planning permission significantly improves your loan terms, we can arrange development finance at various stages of the planning process:
Pre-Planning Finance - Acquire land with strong planning prospects
Planning Pending - Bridge the gap while awaiting planning approval
Planning Approved - Best rates and terms with full consent
Outline Planning - Progress to detailed planning with funding in place
Note that loans without planning permission typically attract higher rates (0.8-1.5% monthly) and lower LTVs (50-60%). Once planning is secured, you may refinance to more favourable terms.
Development Finance Frequently asked Questions
What is the maximum LTV for development finance?
Most lenders offer up to 70% Loan-to-Gross Development Value (GDV) or 80% Loan-to-Cost (LTC), whichever is lower. This means you typically need 20-30% deposit or equity contribution.
How long does development finance approval take?
We provide decisions in principle within 24 hours. Full approval depends on valuation and legal work but typically completes within 2-4 weeks for straightforward cases.
Can I get development finance as a first-time developer?
Yes, though lenders prefer to see professional support such as experienced contractors, architects, and project managers. Some lenders specialize in first-time developers with solid plans.
What happens if my project takes longer than expected?
Most development loans include provision for extensions, typically 3-6 months, though extension fees and higher interest rates may apply. We build realistic timelines with contingency from the outset.
Do I need a quantity surveyor?
For most development finance loans, lenders require independent monitoring by a quantity surveyor (QS) or building surveyor who certifies completion stages before releasing funds. This protects both you and the lender.
Can I use development finance for refurbishments?
Yes, heavy refurbishment and conversion projects often use development finance, particularly when creating additional value or units. Lighter refurbishments may be better suited to refurbishment bridging loans.
What's the difference between development finance and bridging finance?
Development finance is specifically for construction projects with staged drawdowns as building progresses. Bridging loans are short-term loans for property purchase or light refurbishment, typically released as a lump sum upfront.
What exit strategies do lenders accept?
Common exit strategies include selling the completed development, refinancing to buy-to-let mortgages, obtaining commercial mortgages, or selling to institutional investors. Your exit strategy must be realistic and well-evidenced.
Next Steps:
Free Consultation - Discuss your project with our development finance specialists
Proposal Review - We assess your plans, costs, and funding requirements
Lender Matching - Access our panel of 130+ lenders for the best rates
Decision in Principle - Receive confirmation within 24 hours
Full Approval - Complete valuations, legal work, and documentation
Funds Released - Receive your development finance and start building