First-Time Developer Finance Rates 2026 — Updated October 2026
- First-time developer rates
- c.9.5%–12% p.a.First-time developer rates
- Typical max
- 55%–60% LTGDVTypical max
- Contractor, architect and project manager
- Professional team matters mostContractor, architect and project manager
- Last updated
- October 2026Last updated
First-time developers can get development finance, but lenders price for the missing track record with slightly higher rates and lower leverage. In October 2026 expect 9.5%–12% a year at 55%–60% LTGDV. A strong professional team — an experienced contractor on a fixed-price contract, architect and project manager — counts almost as much as your own experience.
First-Time Developer Finance Rates — October 2026
Swipe the table sideways to see every column.
| Profile | Indicative rate | Typical leverage |
|---|---|---|
| First scheme, strong team, simple build | 9.5%–10.5% | up to 60% LTGDV |
| First scheme, self-managed | 10.5%–12% | 50%–55% LTGDV |
| Refurbishment or conversion as a first project | see Refurbishment Bridging | up to 65% GDV |
What first-time developer finance costs: worked example
- Facility (60% of land plus all build)
- £510,000
- Leverage
- 57% LTGDV, 78% LTC
- Rate and term
- 10.5%, 15 months, rolled
- Interest
- £59,572
Two-house scheme: land £350,000, build £300,000 over 9 months, GDV £900,000.
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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.
- Enquiry type
- Development Finance
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- First-Time Developer Finance Rates
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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
Do I need building experience?
Not personally, if your contractor and project manager have it.
Is a small first scheme easier?
Yes — lenders prefer one to four units for a first project.
What deposit does a first-time developer need?
Usually 40%–50% of the land cost plus a contingency, because most lenders fund 50%–60% of land and all build costs.
Will a lender accept my refurbishment track record?
Yes — completed refurbishments count towards experience.
Does a JV partner help?
A partner with a track record can open more lenders and higher leverage.
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.
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Independent whole-of-market advice · FCA No. 814533