Development Finance Lenders Compared 2026 — Updated October 2026
- Funding 365, 0.74%/mo rolled
- c.8.8% p.a.Funding 365, 0.74%/mo rolled
- London Credit at 65% LTGDV
- 9.5%London Credit at 65% LTGDV
- Alternative Bridging (base + 6.5%)
- From 10.25%Alternative Bridging (base + 6.5%)
- Last updated
- October 2026Last updated
Published development rates vary by lender, leverage and scheme size. The table lists lenders whose rates have been published and verified; we add others as their pricing is confirmed. Each row carries its source date.
Development Finance Lenders Compared — October 2026
Swipe the table sideways to see every column.
| Lender | Published rate | Leverage | Loan size | Source date |
|---|---|---|---|---|
| Funding 365 (Ground Up Development) | 0.74%/mo rolled (c.8.8% p.a.); 0.79% to 65%; 0.84% to 70% LTV net day one | to 65% LTGDV gross, 85% LTC net | £250k–£3m | Sep 2026 |
| London Credit (Prime Development) | 9.5% at 65% LTGDV; 10% at 70% | to 70% LTGDV | — | 5 Aug 2026 |
| Alternative Bridging (residential development) | from 10.25% (base + 6.5%); rate falls 1.5% after practical completion | — | — | Jan–Feb 2026 |
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The figures above are indicative and describe the best case. Send your own scenario and we will come back the same working day with terms from the lenders that actually fit it.
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- Development Finance Lenders Compared
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Enough detail to price it is the amount, the security, the purpose and how you plan to repay. The rest we can fill in on a call.
Whole of market · 130+ lenders · FCA 814533 · Same working day response
Rate context and outlook
Senior development finance currently prices from about 8.8% a year for low-leverage ground-up schemes, with most facilities at 9.5%–12%. Bank Rate is 3.75% after the 17 September hold; development lenders price off their own funding costs, so rates have stayed stable through the September swap-rate rise, and some lenders cut margins over the summer.
Lenders now expect tighter information on build costs, drawdowns and exit before committing.
Reviewed by David Doulton, Director, Doulton Bridging Finance — over 20 years in property finance. Last reviewed 1 October 2026. Doulton Money Ltd t/a Doulton Bridging Finance, FCA No. 814533.
Frequently asked questions
Which development lender is cheapest?
It depends on leverage, experience and scheme size; published rates are a starting point, not a quote.
Do lenders publish all their rates?
No — many price case by case, which is why a whole-of-market broker compares them live.
How are funds released?
In stages as the build progresses, usually in arrears, after a monitoring surveyor confirms the work is done.
Do I need planning permission?
Senior development finance usually requires full planning; sites without it are funded with land bridging first.
How long does it take to arrange?
Usually 4–8 weeks, depending on valuation, the monitoring surveyor and legal work.
What is the difference between LTGDV and LTC?
LTGDV compares the loan with the finished value; LTC compares it with total costs. Lenders apply whichever is lower.
What if the build overruns?
Lenders expect a 5%–10% contingency. Overruns beyond it are usually funded by the developer, or by agreeing an extension.
Where this applies
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Independent whole-of-market advice · FCA No. 814533