Development Finance UK
At Trinity Finance, we specialise in arranging development finance for UK property projects of all sizes — whether it’s a ground-up build, a conversion, a full refurbishment or a mixed-use scheme. Our dedicated team of development finance experts will work with you every step of the way, from appraisal through draw-down to exit strategy.
What Is Development Finance?
Development finance is a short-term loan designed to fund the acquisition of land or property and construction or refurbishment works, with repayment typically through sale, refinance or long-term mortgage. Unlike standard mortgages, these loans are tailored to the unique needs of property development:
- Covering land purchase and construction costs.
- Supporting residential, commercial or mixed-use projects.
- Funding single units or multi-unit schemes.
- Repaid when the project is sold, let or refinanced.
Why Choose Trinity Finance for Your Development Funding?
- Rapid decision making: With our expert team and strong lender relationships, we deliver swift in-principle offers.
- Wide lender panel: Access to multiple UK specialist lenders means more options, better terms, and bespoke funding solutions.
- Flexible loan sizes: From smaller schemes to larger developments, we can match your project scale.
- Transparent terms & costs: No hidden surprises — we clearly explain fees, interest, draw-downs and exit strategy.
- Deep development expertise: Our team has a strong track record in property development finance, so we understand what lenders look for.
- Support across the UK: Whether you’re in England, Scotland or Wales, we can assist you right across the property market.
- Exit strategy focus: We ensure you have a credible exit plan, which is crucial for lender approval and successful draw-down.
Types of Projects We Fund
- Ground-up new builds: From land purchase through to completion of construction.
- Conversions & change of use: Commercial to residential, loft conversions, flats above retail units.
- Refurbishment & renovation: Uninhabitable properties, major works, structural upgrades.
- Mixed-use and commercial schemes: Office/retail/residential blend developments, warehouse conversions, light industrial.
- Multi-unit developments: Apartments, blocks of flats, housing schemes.
Costs & Fees You Should Know
Development finance involves higher complexity than standard mortgage finance, so you’ll encounter several cost components:
- Arrangement or facility fee (often a % of the loan)
- Interest payments (monthly, rolled up or at term end)
- Valuation and legal fees
- Monitoring and stage payment fees (for multi-drawdown schemes)
- Exit or repayment fees (if applicable)
We’ll provide you with a full cost breakdown based on your project, so you can compare options with confidence.
The Process - Simple, Transparent & Supportive
Initial enquiry & project overview
tell us about your project, exit plan and timescale.
Indicative offer
we find suitable lenders, provide indicative terms and costs.
Formal application & due diligence
submission of documentation, valuation, schedule of works, planning and exit strategy.
Draw-down & monitoring
loan funds released in stages (draw-downs) aligned with project milestones; lender monitoring where required.
Exit & repayment
via sale, long-term mortgage or refinance; we assist with managing the full cycle to ensure a smooth completion.
Latest Testimonials
Speak to an expert development finance adviser
Our specialist development finance brokers are here to guide you through the entire mortgage and finance process, helping you secure the best Development finance deal tailored to your needs.
Louis Chalk
Associate Director
Emma Taylor
Mortgage Consultant
Omer Mehmet
Managing Director
FAQs
How does development finance work from start to finish?
Development finance is structured differently from a typical mortgage. It’s a short-term, staged loan specifically designed to fund property construction or refurbishment.
The process usually begins with an initial appraisal — you share your project details, costs, plans, and exit strategy. Lenders then issue an Agreement in Principle (AIP) or indicative offer outlining loan size, interest rate, and structure.
Once accepted, funds are typically released in drawdowns, aligned with key build milestones. For example:
- Stage 1: Land or site purchase
- Stage 2: Groundworks/foundations
- Stage 3: Structural completion
- Stage 4: Internal finishing
- Stage 5: Final completion & sign-off
An independent surveyor or monitoring surveyor may visit to verify progress before each release.
Interest is charged monthly and can be rolled up or retained until the end. You repay the full balance when you sell, refinance, or complete your exit — making it highly flexible for developers needing cash flow during build phases.
How much can I borrow for a development finance project?
Loan size depends on the Gross Development Value (GDV) — the projected value of the completed property or project.
Most lenders will finance:
- Up to 70% of GDV for experienced developers
- Up to 85% of total build costs or land + construction costs
- Loan terms of 12–36 months, depending on project scale
Example:
If your completed development is worth £1,000,000 (GDV), and the total build costs are £700,000, you might expect to borrow up to £700,000 (70% GDV), leaving £300,000 as equity or profit margin.
However, the actual amount depends on your experience, location, exit strategy, and project type (e.g., ground-up vs. conversion). Trinity Finance’s team can quickly assess how much you could borrow across multiple lenders to find the most competitive structure.
What’s the difference between development finance and bridging loans?
While both are short-term property funding tools, they serve different purposes:
| Feature | Development Finance | Bridging Loan |
|---|---|---|
| Purpose | For construction or major refurbishments | For buying or refinancing property quickly |
| Funding structure | Released in stages (drawdowns) as project progresses | Entire loan released upfront |
| Interest | Often rolled-up or retained | Monthly or rolled-up interest |
| Security | Based on land/property and future GDV | Based on existing property value |
| Exit strategy | Sale or refinance of completed project | Sale, refinance or long-term loan |
If you’re building or converting, development finance is the right route — it matches your build costs.
If you simply need quick short-term funding for purchase or refinance (no build costs), a bridging loan is often more suitable.
Can first-time developers get development finance?
Yes — although lenders usually prefer experienced developers, first-time developers can still secure funding. You’ll just need to demonstrate that your project is well-prepared and has professional support.
For first-timers, lenders place greater emphasis on:
- Strong professional team — builder, project manager, architect, QS, solicitor
- Clear exit plan — how you’ll repay once the project completes
- Adequate contingency — typically 10–15% of build costs
- Feasibility evidence — planning permission, comparable sales (GDV proof), realistic build costs
Trinity Finance regularly works with new developers. We help structure the application and present it to lenders in the most credible, lender-friendly way — increasing your approval chances dramatically.
How are interest and fees structured in development finance?
Unlike traditional loans, development finance interest is usually not paid monthly — it’s rolled up (added to the loan balance) or retained (deducted upfront).
Here’s a breakdown of typical cost components:
- Interest: Usually between 6–12% per annum, depending on LTV, experience, and risk.
- Arrangement/facility fee: Typically 1–2% of the loan amount.
- Exit fee: May apply (often 1% of the loan or GDV), payable when the project is repaid.
- Valuation & legal fees: Paid at application stage for due diligence.
- Monitoring surveyor fees: Cover progress inspections during the build.
Trinity Finance ensures all fees are disclosed upfront. We compare multiple lenders to identify the most competitive total cost of borrowing — not just the headline interest rate.
What documents do I need to apply for development finance?
Having complete and accurate documentation is key to a fast approval. You’ll typically need:
- Personal identification (passport, driving licence, proof of address)
- Company documents (if borrowing through a Ltd company or SPV)
- Detailed schedule of works (breakdown of each construction phase with costings)
- Planning permission or permitted development rights evidence
- Professional reports – architect drawings, QS report (if available), or builder’s quote
- Project appraisals – including build cost summary and GDV evidence
- Exit strategy evidence – sale comparables, mortgage in principle, or refinance plan
Trinity Finance’s brokers can assist with preparing and presenting these documents professionally, which helps secure quicker lender decisions and better terms.
What happens if my project runs over budget or time?
Delays and overruns are common in development projects, so lenders expect contingency planning.
If your project runs over, there are generally three options:
- Request a term extension — some lenders will allow this if progress and exit strategy remain sound.
- Inject additional capital — either from personal funds or through a small top-up loan (if the lender agrees).
- Refinance — switch to another short-term facility or long-term mortgage once substantial value is created.
At Trinity Finance, we help clients monitor loan drawdowns, budgets, and progress. We can also step in mid-project to refinance or restructure if things change, ensuring you maintain control of your build.
How is the exit strategy evaluated by lenders?
The exit strategy is the most critical part of any development finance application. Lenders want to know exactly how and when they’ll be repaid.
Common exits include:
- Sale of the completed development — evidence via estate agent appraisals or comparables.
- Refinance — moving onto a long-term buy-to-let or commercial mortgage.
- Equity release — using another project or asset to repay the balance.
Lenders will test the feasibility of your exit. They may stress-test sale prices, rental yields, or mortgage availability to ensure the plan is realistic.
Trinity Finance supports you in crafting a credible, well-documented exit strategy that strengthens your application and secures better loan terms.
Contact Form
Ready to move forward?
Speak with one of our development finance specialists today. Provide us with your project overview, timescale, exit plan and budget
Mortgage Lenders
Partner with specialist lenders who understand finance
