Securing full funding for a property development project can be challenging, especially when you want to preserve cash flow or do not have enough upfront capital to cover the land purchase and build costs. 100% development finance may help developers access funding for the full project cost when there is strong security, a clear exit strategy and the right lender criteria.
Whether you are purchasing land, building residential units, converting a property, or funding a commercial development, Discount Mortgages can help you search the market for suitable 100% development finance options.
We make 100% development finance as simple as possible.
The overall cost for comparison is variable and will depend on your circumstances. Please ask for a personalised illustration.
To get a suitable 100% development finance quote, your advisor will review your project, site value, purchase price, build costs, gross development value, planning status, experience, security, timescale and intended exit route. Discount Mortgages can compare available lenders and help identify a solution that matches your development funding requirements.
If you need to fund both the land purchase and construction costs, or you want to reduce the amount of personal capital tied up in a project, 100% development finance may provide a flexible funding route. It is commonly used by experienced developers, property investors and businesses with strong projects and suitable security.
100% development finance is a specialist funding solution designed to support property development projects where the lender may be able to fund the full cost of the development. This may include the site purchase, construction costs, professional fees and other agreed project costs.
In many cases, lenders will require additional security, strong borrower experience, a clear development plan and a reliable exit strategy. The term “100% finance” does not always mean that every borrower can access funding without contribution, as eligibility depends on the project, lender criteria and security available.
There are several reasons why developers may consider 100% development finance. The main benefit is that it can reduce the need for a large upfront cash contribution, helping developers preserve working capital for other projects, contingency costs or business needs.
Another benefit is flexibility. Some lenders may consider full development funding where the project has strong profit margins, planning permission, a clear build schedule and suitable additional security.
100% development finance may help you:
100% development finance is usually structured around the current site value, total development costs and the expected gross development value. Funds may be released in stages as the project progresses, with each stage often linked to valuation reports, build milestones or quantity surveyor checks.
The lender will usually want to see planning permission, a schedule of works, development appraisal, cost breakdown, contractor details and evidence of a realistic exit route. Your advisor can help you understand what information may be needed before approaching suitable lenders.
100% development finance may be available for a range of property development projects, depending on the lender and the strength of the proposal.
This may include:
The type of project, location, planning position, borrower experience and projected profit margin can all affect the finance options available.
Lenders will usually assess the site value, planning status, gross development value, loan-to-cost, loan-to-GDV, borrower experience, build costs, professional team, security and repayment strategy. The exit strategy is especially important because development finance is designed to be short to medium term.
Common exit strategies include selling the completed units, refinancing onto a buy-to-let mortgage, arranging commercial finance, selling the development site, or repaying the loan through another confirmed source.
Finding the right 100% development finance can be complex because every development, lender and funding structure is different. Discount Mortgages can help you compare suitable options and guide you through the application process from enquiry to completion.
Our advisors can help assess your requirements, search available lenders, explain the costs, and support you with the paperwork required for your 100% development finance application.
Our advisors will do their very best to keep you informed at every stage:
Just need to enter some basic information into our online enquiry form and we will search the market for suitable 100% development finance options.
Or if you prefer, call us today and speak with an advisor who can discuss your development project, funding requirement, planning position, security and exit strategy.
100% development finance is subject to status, valuation, lender criteria, project viability and affordability checks. Your property, land or security may be repossessed if you do not keep up repayments on a loan or mortgage secured against it.
