What a development finance broker does
Development lending is more varied than bridging. Lenders differ on the size of scheme they fund, how much they advance against the land on day one, their maximum loan to GDV and loan to cost, whether they need a main contractor, how they treat first-time developers, and how they release build funds. Some lenders are best for a single house, others for a block of flats or a mixed-use scheme.
A development broker turns your appraisal into a funding proposal: the site, the planning, the build contract and programme, the professional team, the sales or refinance strategy and your track record. We test the numbers before any lender sees them, so weaknesses are dealt with up front, then manage the lender's valuation, monitoring surveyor and legal work through to the first drawdown.
How we compare lenders
We start with our panel. On our panel, 50 lenders offer development finance for ground-up and conversion schemes, from small-scheme specialists to banks, and Instant Quotes shows which of them fit your scheme, with indicative rates and fees, without a credit search.
Where a scheme needs more than the panel offers, such as higher leverage, an unusual property type or a larger site, we search the wider market, including stretch senior, mezzanine and joint venture funders. We model each option against your appraisal so you can see how the cost, the leverage and your own contribution trade off. The development calculator lets you test LTGDV, loan to cost and ROCE yourself.
How broker fees work
Using Instant Quotes is free, and nothing is payable upfront to see which lenders fit your deal. If you take a case forward, how we are paid depends on the lender and the case. Lenders usually pay us a commission, and in some cases a broker fee also applies. Any fee, and when it would be payable, is explained to you before anything is agreed, and nothing is charged without your agreement in writing.
Lenders charge their own costs too, such as arrangement fees, valuation fees and legal costs, and on development facilities the lender may also charge for its own surveyors. We set these out alongside the rate so you can compare the total cost rather than the headline figure. You can ask us in writing about any commission a lender pays us.
Regulated and unregulated development finance
Development finance for schemes built to sell or let is not regulated, because it is business lending. Building a home that you, or a close family member, will live in is different: self-build finance for your own home is usually a regulated mortgage contract with additional protections. We will tell you at the outset if that applies and how your case will be handled. See self-build finance for more.
