Rates & Costs
Development Finance Rates
Drawn from our research database: 115 lenders active in the market and 252 tracked products. Every deal is priced individually — indicative rate ranges updated 29 October 2026.
115
Lenders Active in the Market
252
Live Products on Panel
Typical senior rate around 7.5% a year: the average published senior development rate in our lender data, Oct 2026. Plus the lender's arrangement fee (often 1-2%) and our fee (generally 1% of the gross loan, due on completion; an application fee is possible on complex deals, agreed in writing first).
Example: £2,500,000 for 12 months, simple interest rolled up at 7.5% a year = £187,500 interest + £25,000 lender arrangement (1%; lender fees typically 1-2%) + £25,000 our fee (1% of the gross loan) = £237,500, plus valuation, legal and monitoring costs. Illustrative — assumes the full loan is drawn from day one; every case is priced individually.
How to Read This Page
Two Units, One Confusion Worth Clearing Up
Senior development and mezzanine rates are quoted yearly — those facilities run one to three years. Development exit and land bridging rates are quoted per calendar month — those products are measured in months. (0.65% a month is roughly 7.8% a year, if you want to compare across.) Always convert to the same unit before comparing products.
Indicative Rate Card
Live Rate Aggregates
Updated 29 October 2026 — derived from 252 tracked products from 115 lenders active in the market.
Senior Development Finance
% a yearRolled up / retained — no monthly payments — up to 70% LTGDV
| Band | Average | Top 5 Avg | Lenders |
|---|---|---|---|
| Up to 50% LTGDV | 7.5% | 5.09% | 63 |
| 50–60% LTGDV | Priced case by case | 62 | |
| 60–65% LTGDV | Priced case by case | 60 | |
| 65–70% LTGDV | Priced case by case | 36 | |
Mezzanine & Stretch Senior
% a yearRolled up / capitalised — up to 85% LTGDV
| Band | Rate | Lenders |
|---|---|---|
| 70–75% LTGDV | Priced case by case | 13 |
Development Exit
% a monthRolled up / serviced
| Band | Rate | Lenders |
|---|---|---|
| Up to 55% LTV | Development exit from 0.69% a month, as at Oct 2026 | 14 |
| 55–65% LTV | 14 | |
| 65–75% LTV | 13 | |
| 75%+ LTV | 4 |
Development Bridging — Land with Planning
% a monthRolled up — up to 70% LTV
| Band | Rate | Lenders |
|---|---|---|
| Up to 50% LTV | Priced case by case | 42 |
| 50–60% LTV | Priced case by case | 39 |
| 60–65% LTV | Priced case by case | 30 |
All rates are indicative only and vary by deal specifics. Request indicative terms for your scheme.
Beyond Debt
Equity & Forward Funding
These aren't priced like loans — equity is priced in target returns, forward funding in the discount to GDV. Different animals, both on our panel.
Equity & JV Capital
Priced as target irr — profit share or preferred return, agreed per deal.
- Sub-£10m schemes Bespoke — profit share / preferred return · 18 providers
- £10m–£50m schemes 13–15% target IRR · 73 providers
- £50m+ schemes 10–18% target IRR · 86 providers
Forward Funding & Forward Commit
The institutional buyer funds land and build; pricing is built into the agreed discount to GDV — and your capital requirement is zero.
- BTR / Residential 51 providers
- Student / PBSA 14 providers
- Affordable / Housing Association 22 providers
- Forward Commit (pre-let / pre-sold) 3 providers
Understanding Your Rate
Five Things That Move Your Number
Leverage (LTGDV & LTC)
The single biggest driver. Sub-60% LTGDV puts the deepest pool of lenders in competition for your deal; above 70% the pool shrinks and pricing reflects it.
Scheme Type
Standard residential schemes price keenest. PBSA, extra care and commercial carry specialist premiums — and specialist lenders who genuinely want them.
Track Record & Team
Delivered schemes sharpen pricing — but a first-timer with a strong contractor and QS-tested costs is very fundable. Experience can live in the team, not just the borrower.
Exit Strength
A stress-tested sales schedule or a refinance already scoped reduces lender risk — and your rate with it. The exit is the most-underwritten line in the whole application.
Presentation
The same scheme, packaged properly, prices better. We write the appraisal and cashflow, answer objections before they're asked, and place the deal with the lender whose sweet spot it hits.
Want Your Actual Number?
Send us the scheme basics and we'll come back with terms. Indicative terms usually within about 24 hours; first-stage credit-backed terms (after the lender's credit committee) typically from 5 working days.
Discuss your dealCommon Questions
Rates FAQ
Why are development finance rates quoted annually but development exit rates monthly?
Convention follows the product's natural lifespan. Senior development facilities run 12–36 months, so lenders quote yearly. Development exit and bridging products run months, not years, so they're quoted per calendar month. When comparing, remember 0.65% a month is roughly 7.8% a year — always convert to the same unit before comparing products.
What is LTGDV and why does it drive my rate?
Loan to Gross Development Value — the facility as a percentage of what the completed scheme will be worth. It's the lender's primary risk measure: at 55% LTGDV the scheme can absorb a lot of bad news before the lender is exposed; at 75% it can't. Lower LTGDV means keener pricing, more lender competition, and faster credit approval.
What are the development finance rates in the UK?
Typical senior rate around 7.5% a year: the average published senior development rate in our lender data, Oct 2026. Plus the lender's arrangement fee (often 1-2%) and our fee (generally 1% of the gross loan, due on completion; an application fee is possible on complex deals, agreed in writing first). Where a scheme lands depends on scheme size, LTGDV, sponsor track record, and exit route. Mezzanine finance sits higher — roughly 8–15% a year, sometimes with an equity kicker. Development exit rates are priced case by case. All rates are indicative — actual terms depend on the specific scheme, lender appetite, and market conditions at the time of application.