Development Finance

Why Use Development Finance?

A short-term funding option, Development Finance is perfectly designed to assist with the costs associated with a substantial project. Used to support, encourage and maximise expansion through investment, Development Finance is a great way to keep your project on-track and always moving forward.


Our team assess your case thoroughly and make a quick and effective decision, providing you with flexible options and speedy funds. Whether you want to fund a land purchase, building costs or both, F&M Finance can guide you every step of the way.


What Makes Development Finance So Appealing?

The most common use of Development Finance is for the development of residential housing schemes. These may include PRS’, affordable housing and social housing schemes of any size, in any location in the UK.


It’s important to know exactly what lenders are looking for when funding development projects.


In addition, we can also fund mixed-use, commercial and industrial schemes.


Key features of Development Finance include;

  • • Loans from £50,000 with no maximum loan amount.
  • • Up to 75% of GDV, or 90% of Project Costs using Debt Finance
  • • Up to 100% of Project Costs using Equity and/ or Joint Venture Finance.
  • • Or, 100% development finance is available with additional security.
  • • Arrangement Fees from 1%
  • • Development Finance Rates vary dramatically, but interest rates are from 4% per annum, with interest being “retained” or “rolled-up”, so you don’t have to pay monthly.
  • • Many options with no exit fees
  • • Up to 24 months (or longer, by arrangement)
  • • Available for schemes across the UK
  • • Security requirements vary, but typically on a First Charge basis.
  • • Options with no Personal Guarantees


Once we have established the case particulars, we can ultimately determine the best possible options available. So, whether you’re looking for the cheapest rates or the highest leverage, F&M Finance can help.