Development finance for first time developers

Securing development finance for the first time can feel complex, but many UK lenders actively support first-time developers where projects are well structured and risk is controlled. Whether you’re planning a small residential development, a conversion or a refurbishment, understanding how development finance works is key to getting the right funding in place.

Can First-Time Developers Get Development Finance?

Yes. First-time developers can access development finance in the UK, particularly for smaller or lower-risk schemes. While experience is a factor, lenders place greater emphasis on project viability, exit strategy and the strength of the professional team supporting the development.

This means first-time developers are often well placed to secure funding for straightforward projects with realistic timelines and costs.

How Development Finance Works for First-Time Developers

Development finance is a short-term funding solution designed to support the construction, conversion or refurbishment of property. For first-time developers, loans are typically structured to balance flexibility with lender risk.

Funding is usually provided in two parts. A day-one advance supports the purchase of the site or property, followed by staged drawdowns released as the build progresses. Interest is commonly retained or rolled up, meaning there are no monthly repayments during construction, with repayment made on sale or refinance at completion.

This structure helps manage cash flow while the project is underway.

What Types of Projects Are Suitable for First-Time Developers?

Lenders are generally more comfortable funding projects that are manageable in scale and complexity. Suitable schemes often include small residential developments, single or low-unit new builds, refurbishments, conversions and permitted development projects.

Projects with clear planning status, straightforward construction and strong local demand are typically more attractive to lenders providing property development finance to first-time developers.

What Lenders Look for in First-Time Developer Applications

When assessing applications, lenders focus on the fundamentals of the deal rather than experience alone. They will review the project’s financial viability, including build costs and projected Gross Development Value (GDV), alongside the proposed exit strategy.

The professional team is also critical. Having experienced architects, contractors and consultants in place can significantly strengthen a first-time developer’s application. Borrower structure, often through an SPV or limited company, is also considered.

How Much Deposit Do First-Time Developers Need?

Deposit requirements vary, but first-time developers should typically expect to contribute more equity than experienced developers. This is often reflected through lower loan-to-GDV levels or a higher cash contribution.

That said, lenders may still fund a high proportion of build costs where the scheme is well supported and risk is clearly mitigated. A broker can help structure the deal to maximise leverage where appropriate.

Common Challenges for First-Time Developers (and How to Overcome Them)

The most common challenges for first-time developers include limited track record, cost overruns and planning delays. These risks can be reduced through conservative budgeting, realistic timelines and early engagement with professional advisers.

Clear communication and a well-presented application can make a significant difference when securing development finance UK lenders are comfortable with.

When Bridging Finance May Be a Better First Step

In some cases, bridging finance may be more suitable at the outset. This is common where planning permission has not yet been secured, or where a site needs to be acquired quickly.

A short-term bridging loan can be used initially, with a transition to development finance once planning or other conditions are met.
 → Learn more about Commercial Bridging Finance

Why Use a Development Finance Broker as a First-Time Developer?

Using a specialist development finance broker can significantly improve outcomes for first-time developers. A broker understands lender criteria, structures funding correctly from day one, and presents the project in a way that aligns with lender expectations.

Christie Finance works with a wide range of development finance companies, helping first-time developers access suitable funding while managing risk throughout the process.
 → View our Development Finance solutions

FAQs: Development Finance for First-Time Developers

Do I need experience to get development finance?

No. While experience helps, first-time developers can secure development finance if the project is viable and professionally supported.

Can first-time developers get full build costs funded?

In some cases, yes. Many lenders will fund a high percentage of build costs, although equity is usually required for the site purchase.

How long does development finance take to arrange?

Timescales vary, but development finance can often be arranged within several weeks, depending on valuation and legal complexity.

Can I refinance after the development is complete?

Yes. Many first-time developers refinance onto long-term investment finance or sell the completed units as their exit strategy.

Speak to a Development Finance Specialist

If you’re planning your first development project, speaking to a specialist early can help ensure the right funding structure is in place. Christie Finance provides expert support on property development finance for first-time developers across the UK.

You can also estimate costs using our Development Loan Calculator before applying.