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Development Finance

Property development finance in the UK can help you access the capital you need when developing properties and growing a portfolio. Magni Finance can help clients access the most competitive development finance. Whether it be a block of apartments or a new office development, we have access to the best lenders in the UK today.


Through years of experience and several success stories, Magni Finance can help property developers and investors secure the most competitive funding for up to £100 million or even more. Need assistance with development finance? Contact us today to get started.


    Property development is generally financed via development finance, a form of short-term funding.

    This can be achieved via several avenues, such as traditional high street banks, specialist lenders and other private funding through family offices. Though all options are viable, using a specialist mortgage broker like Magni Finance can ensure a smooth and fast process – both of which are important when it comes to property development.

    With years of experience, we can help property developers and investors across the UK access the most competitive rates. Get in contact to find out more.


    Development finance is designed for property developers and investors. Both groups frequently rely on development finance and accessing crucial capital when building new properties in the UK.

    For example, development finance can be used to fund ground-up developments and conversions alongside refurbishment projects. Moreover, it can be utilised to fund various stages of the process; such as the initial land purchase and construction costs.

    In some cases where a property is to be self-built, specifically designed self-build finance may be required, with funds released in stages depending on the progression of the project and the borrower’s repayment schedule.

    Development finance, nevertheless, is available for both residential and commercial property purchases. It is not, however, typically used for smaller projects such as single property refurbishments where a bridging loan may be more suitable.

    Development finance, in short, is a form of short-term funding for developers. It is available through various options, such as loans, equity investment and lines of credit. At Magni Finance, we can help clients access the best development finance loans in the UK through our trusted network of private and high-street lenders.


    As a form of short-term secured lending, development finance is a particularly fast process with Magni Finance.

    Unlike other property and secured loans, development finance takes into account the price of the property once everything is completed, also known as the GDV. This enables developers to access larger amounts of money than traditional loans.

    The funding is done in arrears, meaning the client will be given the first set of funding, and as each part of the development is completed more of the money will be released by the lender.

    Foremost, lenders will provide a figure based on the initial purchase price of the property or land. Following this, the lender will then offer a certain amount for construction costs up to 100%. However, the first stage of the development will need to be funded alone by the client, typically 30%. The money will then be released once each stage is completed, helping the developer to fund the stages consecutively.

    At Magni Finance, our team of experts can help organise development finance. As mortgage brokers, we can help arrange all types of loans, from large mortgage loans, and high-net-worth (HNW) mortgages to buy-to-let mortgages. With development finance, we can help arrange the process on a client’s behalf. As a result, making the process of development finance more straightforward for them.


    Like any short-term loan, how much development finance will cost depends on the client’s creditworthiness, the lender in question, and the terms agreed alongside interest rates. Below, find some factors which will influence the cost of development finance:

    Interest Rates: Magni Finance’s clients will get access to the best interest rates. For instance, high-street lenders offer rates starting at 5% per annum. Meanwhile, specialist lenders start at 7-8%. Nevertheless, their creditworthiness will have an impact on the interest rates offered. A fixed or variable interest rate will also have an effect on the overall cost of development finance.

    Additional Fees: Arrangement fees are typically 2% of the loan amount, some lenders may also charge exit fees. Clients must also keep in mind the cost of any valuation, solicitor and monitoring fees.


    Despite property developers and investors being able to acquire development finance alone, opting for a specialist mortgage broker like Magni Finance is the most suitable route. This is because the process of development finance differs greatly from a traditional loan, like a mortgage, and can be more complex and time-consuming. Nonetheless, using Magni Finance will ensure clients secure the most competitive rates.

    To get development finance arranged via Magni Finance, clients will first need to contact us. We will then arrange an initial consultation where all matters will be discussed. Clients are all treated on a case-by-case basis with us, meaning no case is too complex to resolve. Once our team of experts have spoken with the client, we will then source the best lender from our network.

    Having been in the industry for many years, Magni Finance has access to the best lenders in the UK.

    Once everything has been arranged, we will then introduce the client to the lender. They will then be able to finalise everything with the lender directly, before being given their funding. Time is important with property development, so development finance with Magni Finance is made simple, secure and fast wherever possible.

What we can help you with

Funding 100% of build costs

Access to lenders who will offer 100% of build costs and 70% of initial land cost

Joint venture finance

Up to 100% of all costs by agreeing to split profits with the finance provider

Large developments

Access to lenders offering loans from £1 million to £100 million and more


We work on your behalf to negotiate the most competitive terms possible

Time efficient

We can move very quickly and secure terms within a few hours

Market access

Extensive range of high street banks, niche/ specialist lenders, private banks and peer to peer lenders


We will explain the process in a clear and transparent manner so there are no hidden surprises

Introduction to lender

Once we have sourced the most competitive option, we will put you in direct contact with the lender to finalise the deal


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