Development Finance Rates by LTGDV & LTC 2026 — Updated October 2026
- Up to 60% LTGDV
- From 8.8%Up to 60% LTGDV
- 70% LTGDV
- From 10.0%70% LTGDV
- 75% LTGDV (stretched senior)
- c.11%+75% LTGDV (stretched senior)
- Last updated
- October 2026Last updated
Leverage sets the price of development finance. Lenders cap both loan-to-GDV (against the finished value) and loan-to-cost (against total costs), and the lower of the two binds. In October 2026 rates start around 8.8% at 60% and reach 11%+ at 75% LTGDV.
Development Finance Rates by LTGDV — October 2026
Swipe the table sideways to see every column.
| LTGDV | Typical LTC | Indicative rate | Annual interest per £1m drawn |
|---|---|---|---|
| Up to 60% | up to 85% | from 8.8% | £88,000 |
| 60%–62.5% | up to 85% | c.9.25% | £92,500 |
| 65% | up to 85%–90% | from 9.5% (London Credit Prime) | £95,000 |
| 70% | up to 90% | from 10.0% | £100,000 |
| 75% (stretched senior) | up to 90%–95% | c.11%+ | £110,000 |
Send your appraisal — indicative terms the same working day
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.
- Enquiry type
- Development Finance
- About
- Development Finance Rates by LTGDV
No upfront fees on loans over £1m.
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
What is a good LTGDV?
60%–65% gets the widest lender choice and sharpest rates; above 70% is stretched senior territory.
Why do lenders cap LTC as well?
To make sure you have your own money in the scheme, usually at least 10%–15% of costs.
Does a pre-sale improve leverage?
Yes — exchanged pre-sales reduce risk and can raise leverage or lower the rate.
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
Get a personalised rate comparison for your case
Independent whole-of-market advice · FCA No. 814533