Development finance is a term for loans used to support the costs associated with a residential or commercial development project. Unlike long-term property mortgages, development financing is typically short-term, with lifecycles in the range of 6-24 months.

How does a property development loan work?
Most development loans work where monthly interest is rolled up and added on to the loan. The loan in addition to any interest is then repaid in full at the end of the term. This is typically done when you remortgage the property or sell it. The majority of lenders will insist that you apply through a broker.

Can you get 100% development finance?
Yes, 100% development finance is possible. Also known as joint venture finance, the loan is made up of senior debt and an equity piece. The senior debt attracts a coupon, and the JV funding partner will take a share of profits