Development finance at competitive interest rates – 3-24 month term

From just 0.65%pm – decision within 24 hours – draw down of first tranche 5-14 days.

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Development finance for property and land

Development finance is used to fund the costs and other expenses incurred on larger building projects including the construction of student pods, housing estates, and retail & leisure parks, the conversion of substantial office blocks to multi-unit residential property, and more.

Redrock has worked with developers since 2011 – we are the bridging loan and development finance specialists. We have over 60 years’ experience finding the right funding solutions with the most competitive interest rates and on the most favourable terms.

Whatever the stage your development project is at, please call us on 020 3780 7610 or click here for our contact form.

Obtaining a development finance loan – the process


Call Redrock or use our online enquiry form to let us know more about the development you’re proposing and how much funding you need for it. The more details you provide, the faster we can work for you.


We’ll be able to let you know almost straight away if there is a lender on our panel willing to fund this. We should get an in-principle decision from a lender for you within 3 hours of your initial call to us.

Valuations & legal

The lender will send a valuer to visit the site and offer a valuation for your proposed development. At this point, your solicitors and the lender’s solicitors will begin working together.


Upon receipt of your paperwork and a satisfactory valuation, the initial draw down of funds will be scheduled followed by further drawdowns when needed to fund building costs.


Who uses developer finance?


Retail and business park development
Residential builds
Major refurbishment and renovations
Ground-up development
Conversions or changes of use
Construction of new builds
Commercial builds

Development finance funding criteria


Loan to value (LTV): 70% maximum for site/property acquisition with 100% build cost available
Exit strategy: sale or refinance (we can assist you with this)
Loan term: 3 to 24 months
Loan amount: £26,000+
Interest options: serviced, retained, rolled-up
Interest rates from: 0.65% per month
Decision: 24 hours
Completion: 5-14 days
Loans available in UK and Europe
Adverse credit considered
Available on first and second charges

Types of funding packages offered


Light development finance
Senior development finance
Stretched senior development finance
Super stretch development finance
Commercial development finance
Build to let development finance
Mezzanine development finance
Development exit finance

Developer finance today

Development finance is a specialist type of bridging loan used to fund the progress of a development project from one stage to a later stage when traditional borrowing solutions are not suitable.

For example, you may have seen land on which there is planning permission to build five residential properties. You might use a land bridging loan to purchase the land and then re-pay the bridging loan and fund the construction costs by taking out a new development finance facility.

When the construction work is complete, you then repay the development finance facility by:

  • selling the property to new owners
  • arranging buy-to-let mortgages for each of the properties
  • using development exit finance to realise the profit from your project (more on this below)

In many cases, developers choose a mixture of different ways of making repayment – for example, by selling some of the properties on a development and arranging a buy-to-let mortgage to let others out.

If you have a specific plan in mind, please contact us 020 3780 7610 or click here for our contact form to discuss your plans.

Types of development funding

With development finance, you may borrow up to 70% of the maximum value of the land or existing property prior to development and up to 100% of the build costs.

Depending on the size and complexity of your development project, there are several different funding solutions available to you. When you contact us and you share the details of your project with one of our lending officers, we’ll be able to advice you on the type of finance which is most suitable and which is most likely to maximise the return on your investment.

Senior development finance

Stretched senior development finance offers a higher LTV/LTC/LTGDV than standard senior development finance. This means that you don’t need to find as much cash upfront to start work on a project.

Stretched senior development finance

Stretched senior development finance offers a higher LTV/LTC/LTGDV than standard senior development finance. This means that you don’t need to find as much cash upfront to start work on a project.

Super stretched development finance

A super stretched development finance package allows you to introduce the lowest amount of upfront funding for a project possible. It combines both a stretched senior development finance and a mezzanine funding solution.

As well as requiring less cash in advance to start a new project, super stretched development finance packages are used when a developer is working on two or more other projects simultaneously when cash flow and expenditure must be carefully managed.

Mezzanine development finance

Developers apply for mezzanine finance to bridge any shortfall between the cash they have available for a project and the funds offered to them by a lender. This shortfall may be preventing a developer from starting work.

Lenders offering mezzanine finance will require the second charge over your development project.

Build to let development finance

Build to let projects are one of the fastest growing types of construction in the UK today. The residential units within a build to let project are never intended for sale to either tenants, landlords, or investors – rather, they are intended to provide an ongoing income stream to the developer.

Redrock Commercial Finance has worked with many built to let developers since 2011 – please contact us more information on how we can help.

Commercial development finance

Developers borrow money to fund the construction of both commercial and semi-commercial building projects. If your intend to rent out your commercial development to business occupiers, we have funders willing to work with borrowers even if there is no pre-let in place.

Light development finance

Light development finance funds smaller development projects including but not limited to ground-up developments of two units or more, permitted developments, change of use conversions, and heavy refurbishment projects (including major structural work).

Development exit finance

Developers use exit finance to repay their current development loans in full:

  • before they have either sold the property (or units created within the property) to end users
  • before they have arranged a commercial buy-to-let mortgage if they intend to lease the property (or units) to other businesses
  • if the property (or units created within a property) have not yet been completed or sold

A development exit finance package is a form of bridging loan. The motivation for developments to take exit finance is that your interest charges will likely be lower than the development finance you currently have in place offering you an opportunity to maximise the return on your project.

Self-build development finance

Many of Redrock Commercial Finance’s lenders are able to provide you with the funding you require for self-build projects.

You may use the finance to build a brand new property on undeveloped land from scratch or, if you have large grounds, you can split the title over the land and property to create a second property.

Why apply to Redrock than approach development finance lenders direct?

Redrock, a leading UK development finance broker, offers a whole of market solution to borrowers seeking the funding they require for their property development projects.

The development finance companies we work with provide borrowers with a wide selection of funding solutions each of which can be adapted to suit your particular project.

Many of the lenders we work with don’t accept direct applications from borrowers. In addition, many funders offer better deals through brokers than they do to borrowers who approach them direct. By working with Redrock, you’re able to access better deals which you would not be able to access if you were searching for development finance yourself.

We work closely with the underwriting teams at each of our lenders and, through the working partnerships we have developed with them, we know which profiles of deal individual lenders will consider and which ones they won’t.

When you get in touch with us and share the details of the project you require funding for, we save you time and money by only approaching the finance companies most likely to view your application favourably and most likely to offer you the most competitive interest rates on their loans.

Development finance interest rates

Development finance rates you pay on funding will vary on the size of the project you’re undertaking, the value of the security you’re offering, the value of the property when building work has been completed, and the amount of money you require.

For indicative rates on development finance loans, click for our development finance calculator.

Development finance UK – contact us for a quote

To speak with us about your development finance project and the most suitable type of finance required to fund it, please call us on 020 3780 7610 or click here for our contact form.