Large Development Finance Rates 2026 — Updated October 2026
- Facilities
- £5m+Facilities
- For experienced sponsors
- At or below 9.5%–12%For experienced sponsors
- Pricing negotiated
- Case by casePricing negotiated
- Last updated
- October 2026Last updated
Above £5m, development finance moves to challenger banks, real estate debt funds and private banks. Pricing is negotiated case by case against sponsor track record, pre-sales and planning, and experienced sponsors often secure rates at or below the mainstream 9.5%–12% range. Fees and covenants matter as much as the rate.
What large development finance costs: worked example
- Every 0.5% of rate
- about £40,000 a year
On an £8m facility:
Which is why larger schemes are run as competitive tenders.
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
- Large Development Finance Rates
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
Who lends above £5m?
Challenger banks, real estate debt funds and private banks, often competing through a tender.
What do large-scheme lenders require?
A strong track record, detailed appraisal, fixed-price building contract and often pre-sales or pre-lets.
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