Turned down / Declined  Development Finance

Don’t worry, Its not unusual, lenders typically only approve 1 in 20 applications !  We have lenders that look at all levels of experience and credit profile.

Turned down or declined property development loan

House Builders Turned Down For Property Development Finance

House builders often require development finance to get underway with the construction of a new property. These loans offer special financing for land purchases and payment to Bill the builder and Scott the electrician.

Unfortunately, not all lenders provide this type of finance. Some banks may turn you down due to their lending regulations while other lenders may not be willing to assume the risks involved.

turned down for property finance

House builders have been increasingly turned down for property development finance since the introduction of the Help to Buy scheme in 2013. Yet analysts anticipate new trends to emerge in this sector with specialist groups taking center stage and big listed house builders giving out 11 billion pounds in dividends and share buybacks since 2013.

One reason UK developers have been declined for development finance is that they lack familiarity with the process. There are various elements that go into making a successful property development loan application, such as land or building costs, construction/build expenses, marketing/sales expenses and time deadlines for each stage.

Lenders require solid plans that can withstand scrutiny, giving them assurance in your ability to complete the project. Furthermore, lenders require evidence of an effective exit strategy and a proven record in property development.

Experience is another factor that helps developers raise their credit scores. It is especially advantageous if you have been involved in a project – large or small – which was successful and profitable. This can be an excellent way to demonstrate your expertise within the business and how you will manage it effectively.

Equity is another essential factor for lenders – your stake in the project and how much of this you have invested. This could include your own savings or money provided by family members.

Lenders typically require between 60-80% of the Gross Development Value (GDV) as a basis for their funding, however it is possible to get 100% development financing if you enter into a joint venture with a lender who will lend up to 100% in exchange for interest and an equity share in any profits generated.

However, not all lenders provide this type of finance and the eligibility criteria will differ. Some assess personal credit score and circumstances while others assess your business plan.

how some lenders require large personal guarantees

Lenders often demand personal guarantees from borrowers in order to protect their investment. Doing this reduces the risk when granting a loan and allows them to pursue legal action against the guarantor’s personal assets in case of default.

Guarantors’ assets may include bank accounts, cars and real estate. This presents lenders with another avenue to attempt collecting on a loan.

Limited and unlimited guarantees are the two primary types of guarantees in existence. A limited guarantee limits the lender’s capacity to collect a specific percentage of a debt’s total balance; on the other hand, an unlimited guarantee allows for larger sums of money from either a principal or business owner.

Increased loan opportunities are possible with this approach, but it can present challenges to both borrowers and guarantors alike. Before making a final decision about whether this type of financing is right for your company, it’s essential to comprehend both its advantages and potential drawbacks.

If you’re a small business owner in need of financing, your lender is likely to request that you sign a personal guarantee. This provides an extra layer of protection for them and makes them more likely to approve your application for a loan.

Personal guarantees are typically only necessary when a borrower’s credit history is deemed too weak to secure traditional bank loans or other forms of commercial finance. A personal guarantee can be an excellent way to increase your chances of receiving a loan and may help you get an interest rate lower than what you would have received without it.

Personal guarantees do not require you to accept all terms written in the contract. Nonetheless, it’s essential that you comprehend its provisions and that you remain protected in case of default.

Personal guarantees are often necessary for most developers, as they provide additional assurance that the borrower will repay the loan. Unfortunately, they can cause more issues than necessary for borrowers and cause more hassle than necessary.

How much deposit do I need for development finance?

75% Development Finance

If you are a builder, then you’re good at what you do – building houses,  but you might not be so great at sifting through lenders criteria and filling in multiple forms, creating cash flow forecasts and build schedules to get finance.  

we can help with the  application,  stage payments and exit finance if required.  we treat all our clients as friends, rather than just a number or enquiry. This enables us to develop long terms relationships to help you reach your full potential.  

Let us help you make your next project a success.

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development finance options
10% property finance boost

+10% Presales Boost

Boost your “Day 1 cash”  by 10% of the GDV ! 

If you are a builder, then you know ‘cash is king’  there have been many good sites lost due to cashflow issues.  So just imagine how an extra 10% of the sites GDV in cash on day 1  could help you drive the site forward at breakneck speed !

You can still sell the houses at FULL VALUE  yourself and retain the full profit ( and just pay the presales agent a small commission) , or  if they just cant be sold, rest assured knowing that every house on the site has been sold off plan. 

Let us help you make your next project a success. 

100% Development Finance

Are you seeking land purchase cost + 100% of build cost? Want to know development finance rates?

Property development finance is an essential tool for developers looking to fund their projects in the UK. Whether you are a seasoned property professional or a first-time developer, securing finance is a critical aspect of the development process. One way to help manage cashflow during a development project is through pre-sales and exit finance.

Pre-sales finance is a type of funding that is secured against pre-sales contracts. This type of financing is useful if you need to raise capital before your development is complete. By securing pre-sales contracts, you can demonstrate to lenders that there is demand for your development, which can increase the likelihood of securing finance. This can be especially useful if you are working on a larger project, as securing a significant amount of pre-sales contracts can help to reduce the amount of finance required.
Exit finance, on the other hand, is a type of funding that is secured against the future sale or refinancing of a completed development. This type of financing can be used to bridge the gap between the completion of a development and the sale or refinancing of the property. Exit finance can help to manage cashflow during the final stages of a development, allowing you to move on to your next project without being tied up in the sale of your completed development.
Both pre-sales and exit finance can be crucial tools for developers looking to manage cashflow during a development project. By securing pre-sales contracts or exit finance, you can help to reduce the amount of finance required and manage cashflow during the development process. This can be especially useful for developers who are working on larger projects, as it can help to reduce the amount of finance required and minimise the amount of time that the development project takes.
In conclusion, property development finance is an essential tool for developers looking to fund their projects in the UK. Pre-sales and exit finance can be crucial tools for managing cashflow during the development process, helping to reduce the amount of finance required and minimise the amount of time that the development project takes. If you are a developer looking to finance your next project, consider pre-sales and exit finance options to help manage your cashflow and ensure the success of your development.


  • 65%ltv  OF LAND COST
  • 65%ltv OVERALL GDV

Std Development finance Info continues below


  • 50/50 PROFIT SHARE

100% Joint Venture Finance - Click below ..

Why work with us?
  • We’re construction finance experts
  • We have access to specialist lenders who understand the construction industry
  • We can secure funding for just about any purpose
  • We can get loans approved in 48 hours
  • We only charge a fee if we secure the funding you need

Give us a call for a no-obligation chat about your business requirements and what options are out there for you.

As specialist brokers, we can put you in touch with lenders who will truly understand the needs of your construction business.

Call Now  0800 246 5698   / or Advisor direct on 07779819891

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100% Joint Venture Property Finance

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House Builder Turned Down For Development Finance?

Turned Down For property Development Finance? If you’re a UK house builder and have been declined for property development finance, don’t despair. A broker can assist in finding the right lender and completing any necessary specialist documentation. Despite an uptick

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Building Finance For UK House Builders If you are a UK house builder in need of financing for your new development, there are numerous options available to you. This article will focus on development finance, which is an adaptable option

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What this site is about supporting

0.53% apr

Minimum annual Interest rate
(typical rate 1% pcm)


LTV overall against GDV

3 – 24 Months

24 months Max term available

£ 10000000
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Get Your Free quote

One simple enquiry and we check all available lenders for you!

Your Build - We Fund
We have lenders that will fund property development finance on;
  • Residential ( houses ) property development finance to 100% of the build costs from 1 house to 50 unit sites.
  • Experienced builders at record low rates
  • New house builders starting out – with smaller sites
  • Industrial / warehousing facilities
  • Office blocks / retail parks
  • Office to residential conversions

It’s EASY to get started

  • FREE Initial enquiry and obligation-free consultation
  • FREE Comparison of deals from specialist UK lenders

Lending In More detail
We have lenders that can  provide up to 60% of the  land purchase value and 100% OF THE DEVELOPMENT COSTS (INCLUDING FEES) and roll up the interest provided that the total Facility does not exceed 70% of the GDV estimated end value.

Higher L.T.V. if additional property /  security is available.

100% Property development finance

Property development finance -As an experienced developer you know that covering the build cost and managing the cashflow during the build is vital.  Our goal is to work with you for you to have a successful project – that way we hopefully win your repeat business ! 🙂

Development finance institutions  when lending property finance or bridging loans, will look at how experienced developer you are.  This will help them together with the GDV, gross development value help them look at the risk and determine the maximum loan and interest rates they wish to charge.

Also In working with the development finance lenders each month, we know who will and wont lend on certain projects, some lenders for example only want to do bridging loans, some only want to lend on refurbishment projects, whereas some only want to lend on new build property projects.  Nearly all will lend to the private sector as public sector has their own funding routes.

Compare development finance rates, on construction finance for builders



New Build development finance options?

Let us help you find the right development finance lender and get the best funding option for your property project.

We can even help with exit finance. – Exit finance is where you may have sold some of the units, but struggling to sell the final few properties, rather than pay the higher development funding option interest rates, we can bring in exit finance at much lower rates as the site has been completed there is less risk to the commercial mortgage lenders.

Compare development finance rates, on construction finance for builders


100% development finance available : £100k - £2m

(upto £10m funding available for experienced / previous clients with proven track record)

Secondly we can help fund your property development project with finance options from development finance lenders and private investors. Let us help you look at all your finance options including mezzanine finance.

Getting  development finance options for experienced developers and new developers, particularly on new build houses. With specialist lenders that will help the private sector builders get established.  Some Private investors will even work on a joint venture basis.

If you’ve got a building project that you want to get off the ground, we want to hear about it. 

Our team will take the time to understand your story and find a competitive solution that is tailored to your needs. Whether your development project is residential, a care home, student accommodation, office or mixed use, we will work with you to try to make it happen.

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Read our Articles on Builder finance....

100 Joint venture development finance

We are here to make obtaining a Development Loan for your real estate development project easy – 

Whether its through arranging a commercial mortgage, funding via a private investor or specialist lender we are here to help ensure we can put in place any senior debt that you need covered.

We can with enough notice support a  property investor or construction firms with auction finance to purchase brown field sites and then work with them to look at the project costs and  provide a 100% funding of build costs via the development loan

Property development finance explained

Your next property development finance loan = approved

Property development finance explained – From enquiry to completion, we’re here to help you through the borrowing process. Over the years, we’ve refined and perfected our application process to provide you with a seamless and intuitive experience. ONE simple enquiry and we will check your project and offer you a lender that WILL offer  to fund 100% of the build costs.

With  a very hands-on approach to our residential development finance. Where possible  like to meet clients face-to-face, and to visit the development site to see its potential for ourselves. We study the plans, and research the local market.

100 Percent Property Development Finance loans are short-term funding loans, used to develop either an existing building, i.e. refurbishment, or a property conversion, or a new build. The property Development Loans are usually taken over a period of between 6-18 months. This really depends on the type of Development; with a light refurbishment it could be as little as 3 months, and with a larger scheme up to 18 months

New Builder ? Impaired credit ? Discharged Bankrupt?

New Builder ?  or previous Impaired credit history ?  perhaps even a bankruptcy in the past ? don’t worry we know the building trade isn’t always smooth sailing. We can arrange funding for all residential and commercial development projects even if you are a first time developer. Regardless of your experience level, credit history or development project, we can help.

If you have current or recent ccjs we can still look at getting you development finance. We can even get development finance for discharged bankrupts, just make sure you tell us all the bad credit information so we can source the development finance lender that will accept your credit history.

Discharged bankrupt – you can get development finance, we just have to declare everything upfront, and lets be honest you wont get 0.64% rates at the start, your rate swill be 1% + pcm  for the first few projects until you prove your track record.


First time developers with little or no experience

Property development finance explained - First Time Developers With Little or No Experience

For first time developers looking for their first property development loan, trying to figure out how they get 100 development finance – we as property development finance brokers, can help with looking at all your finance options.

Property Developers with little or no previous experience, we can still provide finance to get you up and running whilst most high street lenders will not entertain developers with no experience we have many other lenders who will look at the bigger picture.

As specialists in dealing and packaging your loan application to give you the very best chance of getting finance for your first project, we work with all types of developer and have had many years of experience providing Development finance

Experienced Property Developer, Development Loans.

Experienced Property Developer, Development Loans.

So what is an experienced Developer? Generally, you will have completed at least 4 to 5 projects and sold on for a profit. A builder or building contractor would not be considered a Property Developer, neither would someone who developed and kept the finished properties in a portfolio. The key is the selling.

Also, there are many skill sets that a Developer has that a Builder would not possess. As always, experience and dealing with the many pitfalls that come with Property development, selling on, keeping a tight control over costs and not overdeveloping (something some builders do proudly). It is great having the best spec and design but will it add profit?


Typically these might be larger senior debt loans, or involve mezzanine finance, but we can help you understand as a borrower the best options for you and your property development project.

100% Commercial Mortgages

As property development finance brokers , we can access Development loans, 100 development finance, bridging finance, mezzanine finance whether its from specialist lenders, private investors or the main commercial mortgage providers or development finance institutions. Are effectively all commercial mortgages, in that they are financing property that you as the developer do not intend to live in yourself.

Whether its a complete new build housing site, or a refurbishment of a commercial property, or conversion from office space to residential property.  we can help you plan out your build costs for your development project.

In summary guiding you through all the professional fees  from solicitors professional fees  to the lenders professional fees.  We can help make sure the loan amount is correct and advise on what the maximum loan would be for you as a borrower.

Margaret Curtis

Development Company

If you are looking for some awesome, knowledgeable people to work with, these are the guys I highly recommend. Their friendliness and result-driven approach are what I love about them.

Matthew Fox

Uk Builder

Down to earth, great advice and support. Really helped me get the project off the ground.

100% Property development finance loans for builders

Bridging finance for development is used to build a new building or convert an existing building. This can be residential houses, shops, offices or industrial buildings. It can be for investment purposes or owner occupied.

In short – You can be an experienced developer / builder or a first-time developer.  Whatever your status as a builder by profession who has purchased land and wants a loan to build houses that he will build and sell on. 

The maximum you can borrow to purchase the site is anywhere between 50-60% of the purchase price depending on the project. Your proposed site would need to have full planning in place or can be agreed subject to planning.

Key Features of typical Development Loans

  • Loans from £100,000 upwards
  • No tie-ins. In most instances you can repay the loan without incurring any early repayment charges
  • No experience is required provided a building contractors contract has been provided
  • Funds are available in stage payments and interest charged only on the money drawn
  • Can use other properties as collateral
  • You are not liable to borrow the full agreed amount should your build go below budget/plan
  • With property development finance the valuations tend to be higher than standard valuations and take longer to perform.

In summary you can  borrow up to a 100% of the build cost provided that it is within 60% – 70% of Gross Development value (GDV) depending on the lender and experience (set on a case by case basis). Maximum term you can borrow for development finance is between 12- 36 months. Exit is usually sale of properties or refinancing.


Development finance The Skys the limit !
house building uk finance

Advantages of 100% property development finance loans

and how UK householders can get the finance they need

Main Development Finance Costs

What Costs to Expect on a Development Finance Loan?
This is dependent on the experience of the property developer. Rates can be as low as 4% pa and they can go as high as 20% pa for say an ex-bankrupt, so the range can be anywhere in between. Also, most lenders charge an arrangement fee of between 1-2% of the loan amount. Some Lenders also charge an exit fee, although not all. Usually a percentage of the GDV (gross development value), and around 1% to 1.25% depending on the Development Loan period, i.e. 1% of gross development value for a 12-month loan 1.25 % of GDV for an 18-month loan.

What Are the Main Development Finance Costs?

Fees, charges and general borrowing costs vary significantly from one lender to the next. The following will apply in most instances as the primary costs of development finance:

Lenders fee – More commonly referred to as an arrangement fee, the facility fee is calculated as a percentage of the total cost of the loan (gross or net).

Interest rate – Interest on a development finance loan can be charged on an annual or monthly basis. Annual interest rates of 7% are not uncommon, as are monthly interest rates of 1%. Longer-term facilities attach lower rates of interest, though cost more than those that are repaid quicker.

Completion fee – Sometimes called a completion fee, the exit fee is usually calculated as a percentage of the total cost of the loan (gross or net). Some lenders charge a percentage of the total value of the completed project – not the sum borrowed.

Broker fee – Most brokers charge typically 1%  to 1.75%  of the total value of the loan. If a fee is charged, you will be informed of this in our initial quotation.

These are just some of the primary costs to take into account when considering development finance. Working with an independent broker will help ensure you gain access to the best possible deal to suit both your requirements and your budget.

Other Development Finance Costs to Take Into Account

Additional development finance costs to take into account (which may or may not be applicable) include the following:

Valuation fees – It will usually be necessary for an initial valuation to be carried out by a neutral third party, in order to assess the open market value of the security. This will also typically include a projected valuation of the completed project.

Application fees – we does not charge application fees. Some lenders and brokers impose fees simply for submitting an initial application, or seeking advice on development finance.

Legal fees – If it becomes necessary to hire a solicitor or seek qualified legal advice, the applicant will be responsible for meeting all such costs accordingly.

Administration fees – This is a somewhat vague term, which can apply to almost any additional cost imposed by the lender. Some brokers also charge administration fees 

Monitoring fees – Development finance lenders will naturally need to monitor the progress of the project, in order to ensure it is reaching its predetermined goals. This is to make sure their investment is sound, and the funds allocated are being used as agreed. All monitoring fees are picked up by the borrower.

Draw down fees – Each time a new instalment of funds is transferred to the borrower, an additional fee known as a draw down fee may apply. This could be a set fee, or charged in accordance with the size of the instalment. 

Telegraphic Transfer fee (TT Fee) – This is a cost levied by the banks handling the money transfers, which in the case of development finance can be comparatively large. Nevertheless, TT fees are generally quite small and charged at a fixed rate.


Discharged Bankrupt? development finance deals

Uk Development finance calculator

click here to go to the UK house builders development finance calculator for an instant guide as to how much you can borrow .

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