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Development Finance Frequently Asked Questions

Development Finance Frequently Asked Questions

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Revolution Brokers works with a vast range of development finance lenders and borrowers and understand that the scope of the market can make it a minefield for applicants to navigate.

Here we've collated the most commonly asked questions we receive to give you as much information as possible about how development finance works.

If you have any further questions, we haven't answered, or need professional advice about your development project, give us a call on 0330 304 3040 or email us at

How Much Can I Borrow With Development Finance?

Most UK lenders start at £50,000, and you can borrow up to any amount depending on the scale and value of the development.

Maximum loans for each project will depend on the total costs, how much the development will be worth on completion, and how much the initial investment value is.

Usually, you'll find that loans are capped at around 75% of GDV (the anticipated project value when complete). Some lenders also limit development finance to 90% of the build costs.

What are the Average Interest Rates on Development Loans?

Interest rates vary significantly depending on the project. Smaller loans will carry higher interest rates than larger applications since there isn't an economy of scale available.

Typical interest rates for the most viable projects start at 4.5%.

How Long Does a Development Finance Application Take?

Application times will depend on how quickly you can return the required documents, how soon a surveyor can complete a valuation, and whether the lender has any further questions or queries that need answering before the loan can proceed.

Revolution Brokers provides full project reports with every application to streamline the process and expedite approvals.

Generally, you'll find that the funds are available within two to eight weeks of the offer to lend

When Do I Pay Back my Development Finance Loan?

Lenders have different terms on their development finance products. Usually, you don't need to pay back anything until the project is complete, although some providers will accept interim interest payments.

In most cases, the interest is rolled into the loan, and the total capital plus interest is repaid when the development has finished.

Can I Borrow Development Finance as a New Property Developer?

You can indeed; although you stand a much better chance of approval by working with an expert broker who can negotiate terms on your behalf with a lender.

As a new developer, your application will be considered a higher risk than that of an experienced applicant, so it's even more crucial to seek specialist advice.

Can I Apply for Development Finance on any Property Build?

Most types, yes. The Revolution team works with lenders specialising across the spectrum of property developments, including:

  • New builds
  • Residential and commercial conversions
  • Mixed-use properties
  • Environmentally friendly builds
  • Regulated and unregulated developments
  • Refurbishment projects

It is vital to work with an expert broker, to ensure you apply to the right lender who can approve development finance for your type of intended build.

Can I Get Development Finance Even if I Don't Have Planning Permission?

You can - although it's easier to find competitive lending with planning permission, it is still possible to secure a loan without.

Planning can increase the valuation estimate of a plot by as much as 30%. Therefore, you're likely to be able to borrow more, and a higher proportion of the cost of the development.

In some cases, you can borrow as much as 85% of the anticipated project value, even where planning permission isn't yet in place.

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FCA disclaimer

*Based on our research, the content contained in this article is accurate as of most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The information on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms who are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs. Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.

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