What is development finance?

Development finance is short‑term, project‑specific funding used to buy land, pay for construction and associated costs, and bridge the gap to sale or long‑term refinancing. It’s designed to fund the build phase rather than provide long-term operating capital.

Typical stages funded include:

• Site or plot acquisition (land loans or plot finance).
• Pre‑construction costs (surveys, planning, professional fees).
• On‑site build costs — staged drawdowns as construction milestones are met.
• Sales/disposals — funding to market and sell completed units or refinance to a mortgage.
• Snagging, retention and VAT bridging where needed.

Developers using this finance range from small plot builders and conversion specialists to larger SME housebuilders tackling multi‑unit schemes.

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Can UK Business Loans help with development finance for housebuilders?

Short answer: yes. UK Business Loans acts as a specialist introducer — we don’t provide loans ourselves, but we connect developers to lenders and brokers experienced in construction and development finance.

How it works in practice:

1. You tell us about your project via a short enquiry.
2. We match the details to lenders and brokers in our panel who have the right appetite for your size and stage of project.
3. Selected providers contact you with a no‑obligation eligibility check and indicative quotes.

Our network covers projects from small plot purchases (from about £10,000) to larger schemes in the millions, depending on lender capacity and security offered. We focus on fast, relevant matches — not mass shotgun approaches — so you get contacts that understand development risk, construction programmes, and exit strategies.

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For broader industry information see our construction sector overview or our dedicated construction business loans industry page for additional context.

Explore specialist guidance on construction business loans at our industry page: construction business loans.

Types of development finance we can help you access

Different stages of a build require different products. We match you to providers that offer the right solution for your project:

• Senior development loans — staged funding to cover land purchase and construction. Typically drawdowns against a measured build programme. Terms commonly 12–36 months; Loan‑to‑Cost (LTC) often 60–75% depending on risk.
• Bridging loans — short‑term finance for quick land purchase or to bridge between transactions (1–12 months). Higher rates and arrangement fees but fast decision times.
• Commercial mortgages — longer‑term finance for completed or income‑producing schemes on refinance/exit.
• Mezzanine / junior debt — used to top up senior debt, typically at higher cost and with subordinated security.
• Plot purchase / land loans — finance to acquire land pre‑planning; some lenders accept conditional funding based on planning milestones.
• VAT and retention funding, working capital — short‑term facilities to manage VAT on sales, retention releases or on‑site cashflow.
• Performance bonds / construction guarantees — where requested by contractors or local authorities.

Each product has different pricing, security and exit expectations. We’ll match you with the lenders and brokers most likely to consider your specific deal.

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What lenders will look for: eligibility & documentation

To speed up matching and approvals, prepare the common information lenders request:

• Developer experience and track record (CVs, previous completions).
• Company structure and recent accounts (where available).
• Planning status: consent, pre‑apps or submission details.
• Land purchase price, valuation and existing charges.
• Detailed build cost plan, programme and Q.S. reports.
• Exit strategy — intended sales programme or refinance plan.
• Contractor details and JCT or equivalent contracts.
• Evidence of deposits, equity and contingency funding.

Having a clear cost plan, project programme and professional valuations will greatly improve the speed and quality of lender responses.

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Typical terms, costs and timescales

Costs and terms vary by product and risk profile. Indicative ranges (illustrative only):

• Bridging loans: 1–12 months, higher interest rates, arrangement fees (often 1–3%) and exit fees possible.
• Development loans: 12–36 months, staged drawdowns, monitoring/valuer fees, arrangement and exit fees; LTC commonly 60–75%.
• Mezzanine finance: higher cost, terms aligned to project life, subordinated security.
• Commercial mortgages (exit): longer term (5–25 years) with lower rates once income is established.

Timescales: simple bridging can be approved in days; full development loan underwriting often takes 1–4 weeks depending on complexity and site visits.

Decisions often require valuer inspections and lender site monitoring during drawdowns — plan for this in your timetable.

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How UK Business Loans matches you to the best lender/broker

We keep the process simple and focused on relevance:

1. Complete a short enquiry form (under 2 minutes).
2. We review the project details and match you to the most relevant lenders/brokers in our panel.
3. Selected partners contact you to run a free eligibility check and provide indicative terms.
4. Compare offers and proceed directly with the lender or broker you choose.

Benefits: faster access to specialist markets, fewer irrelevant calls, and a focused shortlist of providers who understand construction risk and project delivery.

We are an introducer — we do not lend or provide regulated financial advice. We connect you with specialist lenders and brokers who can offer regulated products and advice.

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Case studies — quick examples

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Risks, compliance and what we don’t do

Important points to consider:

• We are an introducer and do not provide regulated financial advice or make lending decisions.
• All finance carries risk: planning delays, cost overruns, market shifts and the requirement for security (including possible personal guarantees) are common.
• Before committing, obtain full terms from the lender or broker and, where appropriate, seek regulated financial or legal advice.
• Your enquiry authorises us to share project details with selected lenders/brokers. See our Privacy Policy for data handling information.

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Frequently asked questions

Does submitting an enquiry affect my credit score?

No — submitting an enquiry with us does not affect your credit score. Lenders may perform credit checks later for a formal application.

What loan sizes can you help with?

We typically organise finance from around £10,000 up to multi‑million projects, subject to lender appetite and security.

How quickly will lenders contact me?

Often within hours during business days; complex cases may take longer for an initial consult.

Do you charge for matching?

No — our introduction service is free for businesses. We receive commission when an enquiry is passed to a lender or broker who then contacts you.

Are my details secure?

Yes — we handle data responsibly and only share it with selected partners relevant to your request. See our Privacy Policy for more detail.

Can I get funding with limited development experience?

Yes — some lenders and specialist brokers consider first‑time developers, although terms and required security may be more stringent.

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Summary & next steps

Yes — UK Business Loans can support development finance for UK housebuilders and developers by matching your project to lenders and brokers who specialise in construction and development funding. Our process is fast, no‑obligation and designed to connect you with the right partners to get an indicative quote quickly.

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No obligation • Your details are secure • We are an introducer, not a lender.