Development finance rates UK 2026 — where the market actually sits for experienced developers right now.
For mainstream residential schemes with experienced developers, rates are sitting between 6.5% and 9.5% per annum. The range is wide because the variables are significant: developer track record, scheme location, planning status, leverage required, and the quality of the exit strategy all move the rate materially.
Bank-backed lenders offer the lowest headline rates at 6.5% to 8% per annum, with stricter criteria around track record, minimum scheme sizes, and often pre-sales requirements. Non-bank lenders and private credit funds typically price at 8% to 10% per annum but offer higher leverage (65% to 75% LTGDV) and faster execution.
On leverage: most lenders advance up to 65% of gross development value (LTGDV), with stronger applications reaching 70%. LTC (loan to cost) typically up to 85–90%, subject to the LTGDV cap.
Interest is almost always rolled up — accruing throughout the build and repaid at exit. On a 14-month facility at 0.85% per month, rolled interest on a £2M facility is approximately £238,000. That figure needs to sit within the LTGDV cap at completion.
If you have a development scheme and want to discuss current terms for your specific situation, contact Rosehill Capital directly at rosehillcapital.co.uk.
Leave a Reply