Self Build Development Finance
Funding for individual self-builders, custom build developers and one-off house builds. We arrange land purchase plus staged build drawdowns through both mainstream self-build mortgage lenders and short-term development funders.
Land and build finance for self-builders and custom build schemes
Self build finance covers two distinct markets that often get confused. The first is the regulated self-build mortgage market, used by individuals building their own home for owner occupation, with drawdowns released against build stages by a lender such as Buildstore, BuildLoan, Furness or Hanley. The second is unregulated short-term development finance, used by small developers building one or two units for sale or rent on an exit refinance, priced like a small development loan rather than a mortgage.
Doulton arranges both routes. For owner-occupier self-build, we source advance-stage and arrears-stage self-build mortgages from £150k to £2m at 75-85% of total project cost. For unregulated self-build development, we structure short-term facilities from £250k to £10m at up to 65% LTGDV with a monitored drawdown schedule and a BTL or sales exit at practical completion.
The biggest differentiator for self-builders is the drawdown timing. Arrears-stage lenders release funds after each build stage is complete and certified. Advance-stage lenders release before the stage is built, allowing the developer to pay materials and trades on the way in - critical for self-build cash flow. We model your build programme against both routes before recommending one.
What makes this work in practice
Regulated and unregulated self build
Owner-occupier self build sits on regulated mortgages. Build-for-sale or build-to-let sits on unregulated short-term development finance. We size the right wrapper to your end use from day one.
Advance vs arrears drawdowns
Advance-stage drawdowns release funds before each build stage starts. Arrears-stage drawdowns release on stage completion. We model the cash flow impact and place the case with the right lender.
Land purchase plus build stages
Most facilities combine a day-one land tranche (typically 75-85% of land value or purchase price) with five or six staged build drawdowns: foundations, wallplate, watertight, first fix, second fix, completion.
Self-cert and JCT contract routes
Smaller schemes can run on self-certification with a chartered surveyor signing off stages. Larger and lender-monitored schemes use a JCT contract with a quantity surveyor and monitoring surveyor cycle.
Custom build estate finance
Custom build developers delivering a serviced-plot estate with end-buyer self-builders are funded through a hybrid senior facility. We have arranged custom build schemes from 6 to 60 units across the UK.
Conversion-to-mortgage exit
On practical completion we convert short-term self-build finance to a residential mortgage or BTL through the same Doulton case file. Stress-tested affordability and a Building Regs sign-off settle the bridge cleanly.
How it works
Brief and feasibility
We review land cost, build cost plan, end value and exit (owner occupation, sale or BTL). Indicative terms within 48 hours.
Lender selection
Best-fit self-build lender chosen on drawdown timing, leverage and rate. Heads of terms issued and valuation instructed.
Legals and land tranche
Solicitors run title, planning and security work. Day-one land tranche drawn at completion of purchase.
Build drawdowns and completion
Staged drawdowns released on the QS or surveyor's stage certificate. Mortgage or BTL refinance arranged at PC.
Get self build finance terms in 48 hours
Send the build cost plan and land price. We will come back with regulated and unregulated routes, advance vs arrears comparison, and the strongest lender match for your build programme.
Frequently asked questions
What is development finance?
Development finance funds the construction, conversion or major refurbishment of property. Lenders advance money in stages ('drawdowns') as works progress, verified by a quantity surveyor or monitoring surveyor. Total cost facilities are typical: day-one land advance plus a build facility.
How much can I borrow on a development project?
We arrange development funding from £125k to £300m+. Typical sizing is up to 65-70% of gross development value (GDV) and up to 90% of total project cost, with the balance funded by your equity or mezzanine finance.
Do I need prior development experience?
Experienced developers get the widest lender access and sharpest pricing. First-time developers can still secure funding, usually via specialist lenders, with a capable main contractor and a smaller initial scheme. We have a dedicated route for first-time developers.
What about planning permission?
Most lenders require detailed planning to be in place before drawdown of build funds. Land loans with planning gain exits, outline-only sites and permitted-development conversions can also be funded, but terms and LTVs reflect the higher planning risk.
How is interest charged on development finance?
Interest is almost always rolled up and repaid on exit from sales or refinance, so your project does not need to carry monthly repayments during the build. Lenders size the facility to include a build-in interest reserve.
Explore related pages
Other Doulton specialisms and lenders that commonly fit alongside this one. We always compare the full 130+ lender panel before recommending a deal.
Development Finance
Ground-up and refurbishment development funding from £125k to £300m.
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