Development finance for property developers across the UK
Senior development debt, stretched senior and mezzanine compared across the market and structured around your site, cost plan, equity, experience and exit.
Compare development finance for my property
Share the property or site, finance required, purpose, deadline and exit. Vortex will review the case and compare suitable routes before I decide whether to apply.
You have a site, or a scheme you can see clearly, and the only thing between it and the first drawdown is the right funding structure. Senior debt caps below what the deal needs, and your equity is tied up in the last project. Development finance pays for ground-up builds, conversions and major works, covering the land purchase plus construction, released in stages against verified progress rather than handed over in one lump.
We do not lend our own money. As a development finance broker, we compare suitable lenders and funding structures around the site, cost plan, equity, experience and exit. Where one lender will not stretch far enough, senior and junior debt can form one capital stack. our fee model is confirmed upfront before any application, disclosed before you commit. All figures are indicative; the lender confirms them after reviewing the valuation, appraisal and full application.
Key facts
- 6.5–9.5% p.a. on mainstream residential senior debt; higher for first-time operators and complex schemes
- Up to 80% Loan-to-Cost and 70–75% LTGDV; mezzanine or stretched senior can push to 75–80% LTGDV
- Day-one land advance and later drawdowns depend on the lender, valuation, monitoring and agreed cost plan
| Scenario | Indicative rate | LTV |
|---|---|---|
| Senior debt (experienced) | 6.5–9.5% p.a. | 70–75% LTGDV |
| Stretched senior | 8–12% p.a. | ~80% LTGDV |
| Mezzanine top-up | 12–20% p.a. | 80%+ LTGDV |
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Compare property development finance routes
Use this guide to development finance to pick the angle that matches your scheme, because it is not one product.
Development finance lenders
Compare provider types, underwriting priorities, documents and facility structures.
Explore ›Mezzanine finance
Close part of the equity gap behind senior debt and compare the full capital stack.
Explore ›Development exit finance
Lower-cost bridging that repays the build once units start to sell.
Explore ›100% development finance
How extra security or an equity partner funds the full cost of a scheme.
Explore ›Land finance
Secure the site first, then roll a consented plot into senior debt for the build.
Explore ›Refurbishment finance
Fund heavy works against end value where a scheme is conversion rather than ground-up.
Explore ›Mezzanine development finance
Compare a junior debt layer behind senior development finance where the capital stack supports it.
Explore ›Commercial mortgages
The onward term facility when a finished scheme refinances off development debt.
Explore ›How development finance work funds a ground-up development
Development finance is staged funding for property development projects where value comes from the works. The role of development finance is to fund the build: you buy a plot or a consented site, then construct from foundations to finished units. The lender sizes a facility against your total cost and finished value, releases it in tranches against a monitoring surveyor’s sign-off, and you repay from a sale or a refinance onto a term mortgage.
Because the security is the scheme rather than your income, the lender weighs the site, the development appraisal and the exit far more than a credit score. Using development finance suits a new property build and residential property from houses to build-to-rent; commercial development and a commercial property scheme; ground up development on a cleared plot; converting a property under permitted development; and developing a property to a high standard, once your development plans and planning permission are in place. Flipping property and light works route to a refurb bridge instead.
Different types of development finance
The layers map to where the money sits in the capital stack, so you borrow the right one at the right price.
- Senior debt is the main development loan, first in priority and the cheapest.
- Stretched senior extends it beyond the usual cap through a single facility, simpler than stacking a second loan.
- Mezzanine debt is a second-layer loan behind the senior lender, pricing higher for the extra risk, that experienced developers use to push leverage and free working capital between schemes.
- Conversion finance funds works on an existing property as a bridging loan with a refinance exit.
- An exit bridge then sits below the build facility, a cheaper bridge to repay a completed development while units in an existing development still sell; a land bridge secures the site beforehand.
How a lender sizes the loan against GDV
Three numbers decide how far your facility stretches. Loan-to-Cost (LTC) measures the loan against total development costs; mainstream senior debt funds up to 80% LTC. LTGDV measures it against Gross Development Value, the finished worth valued today; standard senior debt reaches 70% to 75% LTGDV. The day-one land advance releases against the site at the start, usually 60% to 70% of site value.
That finished value anchors the deal. The lever most developers miss is that a 65% cap is not the end of it: mezzanine or stretched senior pushes leverage to 75% to 80% LTGDV, so more of your equity stays free for the next scheme.
Development finance rates and the total cost of a build
Interest rates are priced per annum, and the rate is only part of the cost. A mainstream residential development prices between 6.5% and 9.5%; higher-risk schemes and first-timers sit above that. Stretched senior runs 8% to 12%, and mezzanine, when used, prices 12% to 20% behind the senior lender.
On top sit an arrangement fee, valuation, monitoring-surveyor and legal costs, with repayment usually rolled up and settled from your exit. Judge the cost against your profit, not the headline: on a typical 18-month build the total cost of finance lands at 8% to 15% of the finished value. Every figure is indicative, confirmed by the lender on application.
Using a development finance broker instead of one bank
Go direct to one bank and a property developer gets one set of criteria. A development finance broker can compare property finance deals for UK property projects across senior, stretched senior and junior debt, plus bridging finance providers where a short-term acquisition bridge fits.
Whole-of-market access to finance matches the facility to the site, development goals, property market, cost plan, equity and exit rather than one bank’s appetite. Once I choose a route, Vortex packages the development finance application for the selected lender. Securing property development finance still depends on valuation, underwriting, legal work and approval. This is information, not advice; a qualified adviser confirms the regulatory position.
Common worries about development funding, answered straight
Is development finance only for experienced developers? +
What if my scheme overruns or the exit slips? +
Can I fund the full cost of the scheme? +
Schemes we arrange most
New-build houses, flats, PRS and build-to-rent schemes.
Office or shop turned into flats and similar PD schemes.
HMO conversions and mixed-use projects mainstream banks turn away.
Structural works with planning or change of use.
Mezzanine or stretched senior to free up equity for the next scheme.
Funded with a credible team and more equity in; we say so honestly if it does not stack up.
Your development finance questions, answered
What does development finance fund? +
How much can I borrow on a development project? +
I am a first-time developer. Can I still get funding? +
How long does it take to secure development finance? +
Is development finance regulated or unregulated? +
What is GDV? +
Get a free development finance quote
Bring us your site, scheme, cost plan, equity, target value and exit. We compare suitable funding structures and explain the available routes before you decide whether to apply.