Development mortgages

Development finance is available for new builds, conversions, refurbishments, and mixed-use developments. The specific criteria and terms vary depending on the project type, size, and complexity.

Staged funding means the lender releases funds in stages as the project progresses, typically based on completion milestones. This reduces risk for the lender and ensures the project stays on track.

Development finance typically requires deposits of 30-35% of the total project cost, including land purchase and construction costs. The exact amount depends on the project type, your experience, and the lender's criteria.

Yes, most development finance lenders require full planning permission before approving the loan. Some may consider outline planning permission, but full permission is generally required for the best terms.

Development finance terms typically range from 12-24 months, depending on the project size and complexity. Some lenders may offer longer terms for larger or more complex developments.

Most lenders prefer borrowers with previous development experience, though some may consider applications from those with relevant professional backgrounds or strong project teams. A clear track record and realistic project plan are essential.

Lenders typically require regular progress reports, site visits, and milestone inspections. They may also require professional project monitoring and regular updates on budget, timeline, and quality standards.

If the project exceeds the original budget, you may need to provide additional funding or renegotiate the loan terms. Lenders will assess the reasons for overruns and may require additional security or higher interest rates.

Some lenders will consider first-time developers, though they may require higher deposits, more detailed project plans, and evidence of professional support. Having an experienced project team can significantly improve your chances.

Development finance rates typically range from 5-7%, higher than standard mortgages due to the increased risk. Rates may vary based on project type, your experience, and the lender's assessment of risk.