Construction & Development Finance UK
By Joshua Giles, Founder and Director · Reviewed by the CoreFi credit team
Last updated 20 July 2026
CoreFi is a broker, not a lender. We do not set rates and lenders make all credit decisions.
In short: Construction (development) finance funds a build in stages, not a lump sum, with each tranche released as your monitoring surveyor signs off the previous one, so you pay interest only on what is drawn. Lenders size it against gross development value, usually to 65% of GDV. We place schemes from £250k to £25M with specialist development lenders.
Development finance works differently from bridging. The lender does not hand you the money upfront; it is drawn in tranches against a schedule of works, with each release triggered when your monitoring surveyor signs off the previous stage. That matters because you only pay interest on what has been drawn, so a £2M facility in the ground for twelve months does not cost the same as £2M sitting in your bank from day one.\n\nLenders price this product against GDV, the gross development value of the completed scheme. Most will go to 65% of GDV or up to 85% of total costs, land plus build combined. First-charge security is standard. The lender who says yes to a ground-up residential scheme in a secondary northern town is usually not the same lender who funds a central London mixed-use conversion, and the rates reflect that difference. We have seen build-cost overruns kill otherwise fundable deals, so the quality of your QS cost plan and your own track record carry real weight.\n\nPlanning status is the other lever. Most lenders want full planning in place before drawdown. A handful will issue a credit-approved offer conditional on planning, and a smaller number will fund land acquisition pre-planning for developers with a demonstrable track record on comparable schemes. We are a broker, not a lender, so what we bring is knowing which of those lenders will actually look at your scheme before you waste weeks on the wrong one.
Key Benefits
- Interest rolls up on drawn amounts only, so you are not servicing the full facility from day one
- GDV-based lending means a high-value scheme can support more borrowing than cost-based underwriting alone would allow
- Land purchase and build costs can sit inside a single facility, removing the need to refinance mid-project
- Tranche release is typically within five working days of a surveyor sign-off, assuming your draw schedule is agreed upfront
Frequently Asked Questions
How much can I borrow?
Most lenders will go to 65-70% of GDV or 80-90% of total costs, land plus build. The exact figure depends on your track record, planning status, scheme type, and the lender's view of the exit. As a broker we cannot promise a specific LTV before a lender has seen the deal, and neither can anyone else who is being straight with you.
Do I need planning permission?
Full planning is required by most lenders before they will release funds. Some will issue an offer subject to planning, which at least locks in credit appetite while you wait. A smaller number will fund land acquisition pre-planning, but that is usually reserved for developers with two or more completed schemes of similar size behind them.
What developer experience do lenders actually want to see?
Two to three completed developments of comparable scale is the standard baseline. If you are earlier in your career, partnering with an experienced project manager or bringing in a co-developer with the track record can open doors that would otherwise be closed. Starting with a smaller scheme to build a provable CV is the honest advice.
How does the stage drawdown process work in practice?
You agree a schedule of works and a draw schedule with the lender before the facility is issued. At each milestone your appointed monitoring surveyor inspects the site, confirms the work is complete and costs are tracking the agreed budget, and certifies the draw. The lender then releases the next tranche, typically within five working days. Delays in getting the surveyor on site are the most common cause of cash-flow friction, so build that into your programme.
Related Funding Options
Construction Finance for Property Developers
Development finance for UK residential & commercial property developers. A single facility covering land & build costs, drawn in stages. We place these deals from £250k to £25M.
Bridging Loans for Construction Companies
Short-term bridging finance for UK construction companies. Secure land, cover retention gaps, and move on sites before the high street bank has issued a decision in principle.
Commercial Mortgages UK: Buy or Refinance Business Property
Long-term finance for buying or refinancing commercial property in the UK. We place commercial mortgages on offices, warehouses, retail units, and mixed-use premises for limited companies.
Development Finance Explained: GDV, LTC and LTGDV
How UK development finance works: LTC, LTGDV and day-one land LTV explained, plus how land and build are funded and repaid at exit.
How Development Finance Drawdowns Work
How development finance drawdowns work: staged release against the build programme, monitoring surveyor sign-off, retention and interest on drawn funds.
Development finance by location
Lender appetite varies by city and region. If you would rather start from where your business is based, these local guides cover the same funding with the local picture.
Researching Construction & Development Finance? Get the free guide
Plain-English, UK-specific. What it costs, who qualifies, and how to get the best terms, straight to your inbox.
- How construction & development finance works and what it really costs
- Eligibility and the documents lenders ask for
- How CoreFi matches you to the right lenders from our panel
Ready to Get Funded?
Submit your details and we'll match you with the right lenders from our panel. No obligation, no fees.
Get matched with lendersCoreFi is a trading name of JG Core Ltd (Company #16218779, England & Wales). CoreFi acts as a commercial finance broker and does not provide regulated financial advice. All products described are unregulated business-to-business finance. Information on this page is for general guidance only and does not constitute a formal offer of finance. Terms, rates, and availability are subject to lender criteria and may change without notice.