Development loans

Development finance funds the construction of a new scheme from the ground up, released in staged drawdowns as the build progresses. It covers everything from land advance at acquisition through to practical completion, giving developers the working capital to deliver a project without tying up all their own funds upfront. 

Our maximum loan-to-cost is 85% and maximum loan-to-GDV is 70%, so borrowers typically need to fund at least 15% of the total scheme cost themselves, alongside meeting our LTGDV requirement. The exact figure depends on the specifics of each scheme. We require equity to be committed first, ahead of debt. 

LTGDV (loan-to-gross-development-value) measures the gross loan amount against a scheme’s projected gross development value once complete. It’s one of the key factors we use to size a facility appropriately against the risk and value of the finished development. Our maximum LTGDV is 70%. 

LTC (loan-to-cost) measures the loan amount against the total cost of delivering the scheme, including land, build costs and fees. Alongside LTGDV, it’s one of the core metrics we use to structure a facility, with a maximum LTC of 85%. 

Yes, we can provide a land loan towards acquisition or refinance an existing loan against the site on day one.

We fund a broad range of residential-led schemes, including standard housing, mixed-use developments (up to 25% commercial), purpose-built student accommodation, PRS/build-to-rent, care homes and retirement living. We have particular strength in care homes, with 16 years’ experience, a portfolio of over 100 modern, purpose-built care homes and partnerships with more than 30 operators. 

We support development finance across England, Scotland and Wales, for schemes of all sizes. 

Our development facilities are structured with staged, monthly drawdowns throughout the build program, with a land loan available on day 1, if applicable. Interest is rolled up for the full duration of the project, including the sales period, so there’s no need to service interest payments during the build.

Our development loans are always on a fixed-rate basis, starting from 7.5% p.a. 

Our development loans range from £5m to £50m, sized to suit the scheme and the borrower’s track record. 

Terms typically run for 12 to 36 months, structured around the build program and depending on the scale and complexity of the scheme.

Yes, we offer an allowance for planning uplift, capped at 50%, helping clients maximise the use of their cash throughout the development.

There’s an arrangement fee of up to 1%, plus an exit fee of 2% of the loan amount. 

We lend to experienced developers, and your track record will be assessed as part of reviewing each scheme. We are looking for recent developments of a similar size and scale to the proposed scheme.

We will not consider borrowers with previous serious adverse credit. 

Many of our borrowers look to sell the completed units to repay our loan, or they refinance to a new debt facility. 

To issue indicative terms, we’ll typically need details on the borrowing entity and sponsor, your development track record, the site’s ownership status, a site plan and scheme summary, planning status, a development appraisal and cashflow, and confirmation of your equity and leverage requirements. Please reach out to our team can confirm exactly what’s needed for your project. 

Before advancing to underwriting, we’ll need a fuller information set, including full details of the borrowing structure and professional team, an updated planning and ownership position, detailed construction costs and a construction programme. Our team will guide you through each stage.

Credit approval timelines vary by scheme complexity, but our discretionary structure allows us to move faster than lenders needing external sign-off. 

We lend on a first charge basis only.

Yes — developers building energy-efficient homes may be eligible for our Greener Homes Alliance, which offers development finance alongside a discount for schemes that meet sustainability criteria.

Speak to our lending team about your scheme, site and business plan. We’ll talk through funding requirements at each stage of the build to structure the right facility.