Property Development Finance

Self build and development funding for residential and commercial property.

What is a property development loan?

Property development finance is funding designed to facilitate either new builds, part-builds or comprehensive renovations. Property developers, investors and landlords often call upon this property development mortgage to give them the capital they need to proceed with their project.

For smaller refurbishments that are generally just aesthetic in nature, there are other property development finance options, such as bridging finance or short-term refurbishment finance.

What is commercial development finance?

As the name suggests, a property development mortgage refers to funding that is to be used towards the building or refurbishment of a commercial development, such as shops, hotels, offices or industrial units.

How are the funds distributed?

Commercial development finance is often drawn down in phases, as the development progresses.

Often, the developer will contribute the upfront land costs while the lender will provide the build costs (or a percentage of the build costs). Additional stage payments will then be delivered at regular, pre-agreed intervals to cover the ongoing costs of the building work being undertaken.

How much can you borrow towards building or renovation work?

The total amount you can borrow will be based on a percentage of the gross development value (GDV) after all works have been finalised – aka, the expected market value of the property.

Commercial development finance is typically available for up to 75% of land and build costs and/or 60% of GDV. On occasion, however, we have been able to raise 100% of land and build costs by successfully securing Joint Venture (JV) development finance agreements for our clients.

At Large Mortgage Loans, we typically work with those looking to fund development projects valued at upwards of £2million.

What are the standard terms of this type of loan?

Property development loans, whether commercial or not, usually have between six to 24-month terms, subject to the scope and type of project. Development loans are usually arranged on an interest-only basis with the interest rolled up into the loan, so no monthly payments are required. The exit on this type of loan is generally sale of the property.

What can I expect to pay when it comes to development finance rates?

Development finance rates can often be negotiated, as lenders will assess each case differently depending on the circumstances, also taking into account arrangement and exit fees.

Are you eligible for development finance?

Experienced property developers are more likely to be accepted for property development finance – but that’s not to say that lenders won’t consider those who are embarking on their first renovation project. The application is more likely to be successful if:

  • The investor or developer can prove that a professional team will be overseeing all works
  • The investor or developer has estimated all likely costs, considered the end value of the property, and calculated all prospective profit margins, therefore ensuring that the project is viable with strong compiling evidence.

Image of Property Development Finance.

How can we help you arrange suitable development finance in the UK?

Our team of specialist finance brokers can source development finance for residential, commercial and mixed-use projects. We’ve spent the last 15 years helping new and experienced property developers find the finance they need to start and complete their developments.

We have significant experience in arranging property development loans and we have an in-depth understanding of how to present your individual case to each lender to secure the best possible outcome. We will follow the application process to the letter, submitting all necessary drawings, plans, budget forecasts and a schedule of works to the lender to ensure the best chance of a successful application.

We have unlimited access to the market and have relationships with a panel of specialist property development lenders and other institutions, which means we’re in the perfect position to find you a tailored solution.

At Large Mortgage Loans, we deliver truly independent solutions through our relationships with over 200 finance providers, providing proactive advice while dealing with all aspects of our clients’ circumstances. We aim to make arranging your property development finance simple and easy, however complex your needs may be. What’s more, we aim for your development finance rates to be the lowest we can find on the market.

For more information on how to finance your next property development, or to discuss your options with a specialist broker, contact us today.

Article updated 2nd November 2020 for relevancy.

Please note that The Financial Conduct Authority does not regulate some aspects of commercial mortgages or business finance.

Our services

Our insights

We are the UK’s leading specialist in delivering innovative and bespoke financing solutions to global clients.


Self build and development funding for residential and commercial property.

Your home or property may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it. Changes in the exchange rate may increase the sterling equivalent of your debt. You may have to pay an early repayment charge to your existing lender if you remortgage. Think carefully before securing any other debts against your home. is a trading name of Ltd, Aegon House, Ground Floor Suite, 13 Lanark Square, London, E14 9QD authorised and regulated by the Financial Conduct Authority (FCA). Our FCA registration number is 302228 and can be viewed by visiting the FCA website: The FCA does not regulate tax advice or some aspects of commercial, buy to let, overseas mortgages, bridging finance, finance and asset lending. Ltd is a licensed credit broker, and not a lender. Ltd Registered in England and Wales No: 5070990 Registered Address: As above. The guidance and advice contained within the website are subject to the UK regulatory regime and is primarily targeted at UK customers. Calls may be recorded for training and monitoring.
Make An Enquiry

London Office (Main):


London Office (Main):

Largemortgageloans is a trading name of Ltd, Aegon House, Ground Floor Suite, 13 Lanark Square, London