Construction & Development Finance UK
Construction and development finance is specialist funding released in stages as your build progresses. Unlike a bridging loan (released as a lump sum), development finance is drawn down against a schedule of works — with each tranche released after a surveyor confirms the previous stage is complete.
This structure means you only pay interest on what has been drawn, keeping costs down during the build. Lenders assess the completed development value (GDV), build costs, and your track record as a developer to determine how much they will lend.
Key Benefits
- Stage-released funding aligned with build progress
- Only pay interest on drawn amounts, not the full facility
- Lend against GDV — borrow more on high-value projects
- Covers land purchase + build costs in one facility
Frequently Asked Questions
How much can I borrow?
Typically up to 65-70% of gross development value (GDV) or 80-90% of total costs (land + build). The exact amount depends on your experience, the scheme, planning status, and GDV estimate.
Do I need planning permission?
Full planning permission is usually required before drawdown. Some lenders will issue an offer subject to planning, and a few will fund land acquisition pre-planning for experienced developers.
What experience do I need?
Most lenders require evidence of at least 2-3 completed developments of similar scale. First-time developers may need to partner with an experienced builder or project manager, or start with a smaller scheme.
How are stage drawdowns managed?
Your appointed monitoring surveyor inspects the site at each stage and certifies that the work is complete and costs are in line with the budget. Once certified, the next tranche is released (typically within 5 working days).
Related Funding Options
Development Finance for Property Developers
Ground-up development finance for UK residential and commercial projects. Fund land acquisition, construction, and completion.
Bridging Loans for Construction Companies
Short-term bridging finance for UK construction firms. Fund land purchases, site acquisitions, and cash flow gaps between project stages.
Commercial Mortgages UK
Long-term finance for buying or refinancing commercial property. Offices, shops, warehouses, and mixed-use premises for UK businesses.
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Learn About Our Broker NetworkCoreFi 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.