A development finance broker is a specialist who sources and structures short-term development finance for property developers undertaking ground-up residential development, commercial-to-residential conversion, HMO projects and mixed-use schemes. Development finance is a niche specialist market with many lenders not lending directly, making an experienced broker essential for accessing competitive terms. Commercial development finance is not regulated by the FCA (unless it includes an element of residential owner-occupier borrowing), but NACFB (National Association of Commercial Finance Brokers) membership provides a relevant quality standard.
What they do
- Development finance sourcing and deal structuring
- GDV (Gross Development Value) assessment support
- Loan-to-cost and loan-to-GDV modelling
- Bridging loan arrangement for plot or property acquisition
- Mezzanine finance for equity gap funding
- Development exit finance and refinance on completion
- NACFB compliance and conduct of business obligations
- Lender management and drawdown coordination throughout project
When you need one
A development finance broker is needed when you are undertaking a property development project and require specialist short-term finance to fund land acquisition and construction.
Typical fees (UK, 2025)
| Fee type | Typical amount |
|---|---|
| Broker fee | 1-2% of loan |
| Arrangement fee (charged by lender) | 1-3% of loan |
| Exit fee (some lenders) | 1-2% of loan |
| Valuation fee | £500 - £2,000+ |
| Monitoring surveyor fee (per visit) | £200 - £400 |
All fees should be disclosed in the Key Facts Illustration (KFI) before you commit. Interest on development finance is typically rolled up and repaid on loan exit rather than paid monthly.
Qualifications to look for
Bridging loans secured against a property where the borrower or a family member intends to reside are regulated by the FCA. For these transactions the broker must be FCA authorised. Verify at register.fca.org.uk.
The National Association of Commercial Finance Brokers is the trade body for commercial finance brokers. NACFB members commit to a code of practice and are a recognised quality standard for commercial and development finance brokers.
CeMAP (Certificate in Mortgage Advice and Practice) is required for regulated mortgage advice. CF6 is the specialist certificate in equity release; some brokers hold both alongside broader commercial finance experience.
How to find a reputable development finance broker
Frequently asked questions
What is development finance?
A specialist short-term loan - typically 12-24 months - funding the acquisition and construction costs of a property development. Interest is typically rolled up and repaid on exit when units are sold or refinanced.
What is the difference between bridging finance and development finance?
Bridging finance is a short-term loan to bridge a gap - typically used to buy property quickly at auction or before selling another property. Development finance is specifically structured for construction with funds released in stages monitored by a surveyor.
What is GDV?
Gross Development Value - the projected market value of a completed development. Lenders typically lend up to 65-70% of GDV and 80-85% of total costs.