Development Finance

Development Finance

Flexible funding for property developers, conversions, and new builds.
Last updated: October 2025

What Is Development Finance?

Development finance is short-term property funding designed for ground-up builds, conversions, and major refurbishments. It provides staged drawdowns to cover land purchase and build costs, with repayment once the project is refinanced or sold.

At GPS Financial, we arrange tailored development finance solutions for projects across the UK; from small infill plots to multi-unit sites. With over a decade of experience in property development finance, our team ensures your funding structure works in practice, not just on paper.

We liaise with lenders, valuers, and monitoring surveyors to keep your project moving from start to finish, offering personal guidance every step of the way.

Types of Development Finance We Arrange

• Ground-Up Development Finance; for building houses or flats from the ground up.
• Conversion Finance; for turning commercial buildings, barns, or large homes into multiple units.
• Development Exit Finance: short-term funding once works are complete, releasing capital while properties sell or refinance.
• Part-Completed or Stalled Projects; refinance or finish projects already under way.
• Light Development & Refurbishment Finance; for smaller projects with limited structural work.

Key Features and Benefits

• Loan terms typically 6–24 months, depending on project type and scale
  • Rates from around 8% per year, fully bespoke to your project and experience
  • Up to 70% GDV or 85% of total costs available with suitable security
  • Funds released in stages as the build progresses, managed through monitoring surveyor reports
  • Interest can be retained or rolled up to protect cash flow during construction
  • Flexible exits through sale, refinance, or portfolio restructure
  • Dedicated support from start to finish, with clear communication and no surprises

Who Uses Development Finance

• Experienced developers and builders funding new projects
• Landlords expanding into property development
• Investors completing or refinancing part-built schemes
• Clients converting commercial to residential under permitted development

Costs and Considerations

Rates typically start from around 8% per year, depending on the loan size, project type, and developer experience. All development finance is bespoke, so pricing varies between lenders and is tailored to each project’s structure and risk profile.

Typical fees include lender arrangement, valuation, and monitoring surveyor costs, all confirmed upfront before you proceed.

At GPS Financial, we never begin an application without a clear exit strategy. Whether you’re selling, refinancing, or retaining for rental, your plan is mapped out from day one to protect timelines and profit.

For a deeper look at how bridging works alongside development funding, you can also download our free Bridging Finance Guide.

Real Example: Boutique Development in East London

A developer client in East London approached us to fund the construction of six high-spec apartments on a brownfield site with planning already in place.

We arranged £2.4 million in development finance, covering the remaining land balance and 100% of build costs. Funds were released in stages, and our team worked closely with the monitoring surveyor to keep drawdowns efficient and on schedule.

Once completed, the client refinanced onto a development exit bridge to allow time for sales to complete and free capital for their next project.

Outcome: a fully sold scheme within six months of completion, strong profit margins, and a seamless transition into their next build.

Why Choose GPS Financial

• Over a decade of property finance expertise
• Whole-of-market access to specialist lenders
• Ethical, transparent advice and personal service
• Nationwide support from an award-winning broker
• Authorised and regulated by the Financial Conduct Authority (FCA 975825)
  
  
  

Content reviewed by Morgan Stewart, Director

Call 029 2267 7707 or contact us to discuss your development finance project today.