Mortgages and finance > Development finance

Development finance

Specialist development finance guidance and tailored funding solutions for projects of all sizes - from planning to completion.

How can our finance options support you?

Whether you’re new to property development or an experienced hand, we’re here to simplify your funding journey. Our comprehensive real estate finance service covers all types of development projects, offering independent advice from start to finish.

We can support you with:

  • Strategic planning, to shape your project approach.

  • Financial modelling, to provide clear numbers for decisions.

  • Capital raising, securing the funds you need.

  • Term negotiation, ensuring the best deal for your project.

  • Coordinating professionals to keep everything on track.

  • Post-completion support for smooth transitions after funding.

Offering solutions including:

  • Senior Debt

  • Stretch Senior Loans

  • Mezzanine Finance

  • Investment Debt

  • Joint Ventures

Which type of development finance is right for you?

Development finance can be broken into three main types, depending on your project’s needs. These are Senior and Stretch Development Finance; Mezzanine Finance; Equity Finance. Here’s a quick comparison before we get into the detail:

  • Senior Finance

    For: Developers needing core funding

    Covers: Up to 60% of GDV

    Benefits: Lowest cost of borrowing

    Senior finance

  • Stretch Senior Loans

    For: Developers needing extra funds beyond Senior Loans

    Covers: Up to 70-75% of GDV

    Benefits: More funding, slightly higher rates

    Stretch senior finance

  • Mezzanine Finance

    For: Developers increasing debt for higher gearing

    Covers: Up to 85-90% of project costs

    Benefits: Bridges the gap between debt and equity

    Mezzanine finance

  • Equity Finance

    For: Projects requiring near-full funding

    Covers: Up to 95-100% of project costs

    Benefits: No upfront funds needed

    Equity fianance

Transparent, reliable and NACFB assured

As a proud member of the National Association of Commercial Finance Brokers (NACFB), we adhere to the highest standards of professionalism.

  • Our team undergoes annual audits to maintain accreditation.

  • We’re committed to transparency, trust, and client-first service.

Whether you’re ready to start or just exploring options, we’re here to help. Get an instant quote today or book a call with our experts to discuss your project.

Recent case studies

  • £5,300,000 project: Devon

    5 units

    Loan £2,700,000

    100% of build cost funded

    Experienced developer

    Rate 0.86% PCM

    Exit fee 0.25%

  • £8,000,000 project: Kent

    7 units

    Loan £3,800,000

    100% of build cost funded

    First time developer

    Rate 0.85% PCM

    Zero exit fee

  • £1,300,000 project: Wales

    3 units

    Loan £800,000

    100% of build cost funded

    Builder turning developer

    Rate 0.88% PCM

    Zero exit fee

Senior and Stretch Development Finance

Senior development finance typically covers up to 60% of your project’s Gross Development Value (GDV), making it the most cost-effective finance option. Stretch Senior Loans go a step further, increasing funding to 70-75% of GDV for projects needing extra support.

We can help finance:

  • Residential developments

  • Mixed-use developments

  • Commercial properties

Where needed, we can combine Stretch Senior Loans with Mezzanine Finance or investment funds to create the perfect funding solution for your project.

Mezzanine Finance

Mezzanine finance bridges the gap between equity and senior debt, allowing you to increase borrowing capacity for your project. This:

  • Covers up to 85-90% of project costs.

  • Requires a second legal charge and guarantees for security.

We’ll work closely with your senior debt lender to ensure a seamless approval process for the additional charges required by your mezzanine lender.

Equity Finance

Equity finance involves lenders taking a preferred equity share in your project. In return, they share in the project’s profits, allowing you to secure significant funding without upfront costs. This means it can be a game changer for developers needing maximum funding flexibility, as Equity Finance:

  • Covers up to 95-100% of project costs.

  • Is ideal when other funding options aren’t enough.

Why choose Mayflower for your renovation mortgage?

Full market analysis to secure the best deal.

Dedicated support from first call to completion.

No hidden fees.

Hundreds of funding options tailored to your needs.

We offer a money back guarantee!

We’re confident in the value and service we provide, which is why we offer a full refund of any fees we may have charged if you’re not satisfied with our services. Plus, there are no upfront fees.

How can we support you?

Frequently asked questions

  • Development finance can be used for a wide range of projects, including:

    • Residential developments, such as new builds or multi-unit schemes.

    • Mixed-use developments that combine residential, commercial, or retail spaces.

    • Commercial developments, such as office buildings or retail spaces.
      Whether you're working on a single property or a large-scale project, we can help source funding tailored to your specific needs.

    • Senior Debt: The primary loan, typically covering up to 60% of the project’s Gross Development Value (GDV). It’s the most secure and cost-effective option in the debt stack.

    • Mezzanine Finance: A secondary loan that sits between senior debt and equity, allowing you to increase your borrowing capacity. It typically requires a second legal charge and higher interest rates.

    • Equity Finance: Funding where lenders take a stake in your project and share in the profits. This option is ideal for covering up to 95% or more of your project costs when other finance options fall short.
      Each type has its place, and we’ll help you choose the right combination for your project.

  • To apply for development finance, you’ll typically need:

    • A detailed development appraisal, including costs and projected GDV.

    • Planning permission documents or evidence of progress.

    • Architectural plans and schedules of works.

    • Evidence of your experience (if applicable) or team credentials.

    • A breakdown of your equity or deposit available.

    • Details of any existing finance arrangements.

    Don’t worry if you’re unsure, our team can guide you through the process and help you prepare everything you need. Book a call to speak to us today.

  • Yes, absolutely. We work closely with lenders to ensure you get the most competitive terms possible. By driving lenders to compete for your project, we secure the best rates, flexible repayment structures, and favourable conditions. Our market expertise means you’ll have a tailored finance package that works for your specific development goals.