British business bank

The government-owned British Business Bank has chosen
most lenders on our panel to help businesses that need funding.

Funding11 works with many lenders who are more than comfortable when providing finance facilities that are secured against properties requiring large extension or renovation works or other development sites.

Development finance is short-term, secured finance that is used by property developers to fund conversions, developments or heavy refurbishments of properties. It can be utilised for different types of building projects but tends to be used for projects that are considered ‘heavier’ because they call for serious building works.

‘Lighter’ projects like internal refurbishments are probably better suited to a straightforward bridging loan.

With development finance funds are advanced at the start and then topped up during the duration of the build. Initially, funds are advanced against the site’s value. The majority of lenders are happy to advance as much as 65% of the value or just a little less.

Once the building has started, further funds are provided at pre-agreed intervals. Many lenders are often willing to advance as much as 100% of the costs. As each stage is drawn down the interest is kept by the lender. This removes the need for monthly payments. When development comes to completion, the loan is completely redeemed with any accrued interest.

The lender combines all these metrics to establish the maximum loan. If there is a conflict between the figures, the lowest will be the one chosen to cap the loan. When construction is completed, the expectation is that the loan will be repaid. It is common for people to either look to refinance to a term loan or to switch to an exit product while the site is sold. As well as interest charged, there are normally other fees.

The interest rate charged depends on many factors. The main ones are

  • The project
  • Development’s location
  • Funding amount
  • Developer experience and track record
  • LTV/Loan to GDV

Funding11 is a specialist when it comes to sourcing bridging finance on commercial and residential developments. Don’t hesitate to talk with one of our experts.

Speak to Expert
side image3

Have Any Questions
Regarding Our Development Finance?

How can I apply?

Call us or you can apply online we aim to provide you with an approval within 1-2 business days.

What is the maximum GDV cost can you cover on development finance?

We can cover a maximum of 75% of GDV cost, including up to 100% of development costs.

How quick can you complete development finance?

We can complete development finance within 3-6 weeks depending upon the complexity of the case.

Apply online. It will only take a minute and
will not have any impact on your credit score.

Apply Now