How much can I borrow with development finance?

It depends on the project, its costs, its expected value and your company's experience. Lenders usually fund part of the costs, and your broker can explain the options for the rest.

How is development finance interest calculated?

Interest is usually charged monthly and is often added to the loan rather than paid during the build, then repaid when the project is sold or refinanced. Your broker will confirm the full cost in writing before you commit.

What is loan-to-cost (LTC)?

Loan-to-cost is the share of your total development costs that a lender will fund. Your company funds the rest, and the share varies by lender and project.

Do I need planning permission before applying?

Full planning permission usually helps you get better terms. Some lenders will consider outline planning or permitted development.

What is the exit strategy for development finance?

Development finance is usually repaid by selling the completed units or refinancing to longer-term finance. Lenders need a clear, credible exit strategy before they approve.

Who is this service for?

UK limited companies, LLPs and PLCs only. It isn't available to sole traders, partnerships or individuals.

Development Finance for UK Limited Companies

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What?

What is development finance?

Development finance is specialist short-term lending that funds the purchase and development of residential or commercial property projects. Unlike a standard mortgage, it's released in stages as the build progresses and repaid when the project is sold or refinanced.

Development finance through this service is for limited companies, LLPs and PLCs only, and isn't available on a property you or your family live in.

Why?

Why use a commercial finance broker?

Development lenders differ a lot in their rates, how much of the costs they'll fund and how they monitor the build. Compare Commercial doesn't compare lenders or give advice. We pass your enquiry to one FCA-authorised commercial finance broker, who works with specialist lenders and can look for a facility that suits your project.

How?

How to get matched with a development finance broker

Fill in the short form

Tell us your company name, how much you need to borrow and what it's for, then add your contact details. It only takes a couple of minutes.

We pass on your details

We don't compare lenders or give advice. We simply pass your details to one FCA-authorised commercial finance broker, who will call you as soon as possible during business hours.

Talk through your options

The broker will talk you through your company's options. From here you deal with the broker directly, and there's no obligation to go ahead.

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Frequently asked questions

Development Finance FAQs

Common questions about development finance for UK limited companies.

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