What counts as specialist finance in the UK?

UK specialist finance covers short-term and non-standard property lending — bridging loans (0.79–1.15%/mo), property development finance (up to 65% GDV), commercial mortgages (up to 75% LTV), semi-commercial, HMO term loans, second-charge mortgages, and finance for SPVs, LLPs and pension trusts. It is priced individually by lenders such as MT Finance, United Trust Bank, Shawbrook, Together and Interbay.

How is specialist finance different from a standard mortgage?

Standard mortgages are long-term (25+ year) residential loans priced on income multiples. Specialist finance is typically short-term (3–24 months for bridging and development) or commercial (5–25 year terms secured on non-residential assets), priced on asset value, exit strategy and EBITDA / rental cover rather than personal income.

How fast can specialist finance complete?

Bridging: 5–10 working days for MT Finance, UTB and Together with light legal packs. Development finance: 3–6 weeks including valuation and monitored surveyor. Commercial mortgages: 6–12 weeks depending on complexity.

Development Finance

Fund the build. Not just the land.

Ground-up builds, conversions and heavy refurbs. Up to 65% GDV or 75% of total costs, drawn in stages from 0.65% per month.

AI summary

Development finance is short-term UK property finance funding ground-up builds, conversions and heavy refurbishments. Facilities run 6–24 months, priced 0.65–0.95% per month plus 2% arrangement, and cap at 65% of Gross Development Value (GDV) or 75% of total costs. Funds are released in stages against surveyor-certified milestones, so interest is only charged on drawn balances. Lenders include Shawbrook, United Trust Bank, Together, Paragon and Assetz Capital.

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Key facts

The numbers, at a glance.

Rates from

0.65%/mo

Max GDV

65%

Max of costs

75%

Term

6–24 months

Eligibility & documents

What lenders want to see.

Who typically qualifies

SPVs, LLPs, individual and joint-venture developers
Ground-up new build, conversion and heavy refurbishment
Residential, mixed-use and student schemes
Experienced developers (1–2+ prior schemes for best pricing)
First-time developers with strong professional team

Documents to prepare

Full development appraisal (costs, GDV, cashflow)
Planning permission and approved drawings
Contractor CV and JCT contract
Monitoring surveyor's initial report
Personal / SPV bank statements and asset schedule

Why us

How Elena helps, specifically.

Up to 65% GDV

Higher gearing than pure cost-based bridging for viable schemes.

Stage drawdowns

Interest only on drawn funds — significant cost saving over lump-sum.

Day-one land loan

Purchase + 100% of build costs on a single facility.

JV & mezz options

Equity partners and mezzanine layers arranged for stretched schemes.

Exit-to-term

Auto-refinance to a term BTL or commercial mortgage on practical completion.

AI-matched

Elena matches your appraisal to the right development lender in seconds.

What Elena recommends

Top lender matches for this profile

Best match

United Trust Bank

Development · 65% GDV · 18mo

0.75%/mo

representative rate

Match score95%

"Highly experienced UK development lender with strong stage-draw process."

Shawbrook

Development · 60% GDV · 24mo

0.79%/mo

representative rate

Match score88%

"Flexible on first-time developers with strong contractor and surveyor."

Assetz Capital

Development · 70% GDV · 18mo

0.85%/mo

representative rate

Match score84%

"Higher gearing for experienced developers with 3+ prior schemes."

FAQ

Questions, answered.

Can't find your answer?

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What is development finance?

Development finance is short-term (6–24 months) UK property finance used to fund ground-up builds, conversions and heavy refurbishments. Lenders — Shawbrook, Together, United Trust Bank, Paragon and Assetz Capital — typically advance up to 65% of Gross Development Value (GDV) or 75% of total costs, whichever is lower, at 0.65–0.95% per month plus a 2% arrangement fee.

How much can I borrow with development finance?

UK development finance caps at 65% of GDV or 75% of total costs. On a £2m GDV / £1.4m total-cost scheme, that means up to £1.3m facility (65% GDV) or £1.05m (75% costs) — the lower figure applies. Day-one land loans typically fund 55–70% of purchase price, with build costs drawn in stages.

Do I need previous development experience?

First-time developers can borrow, but usually at lower LTV (60% GDV) and often via a monitored surveyor and experienced main contractor. Two or more completed schemes unlock 65–70% GDV and self-build oversight.

How is development finance drawn?

Development facilities are drawn in stages against surveyor-signed valuations at fixed milestones (foundations, wallplate, watertight, first fix, practical completion). Interest is charged only on drawn funds — reducing overall cost vs a single lump-sum drawdown.

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