Can I Get 100% Development Finance?

Yes, it is possible to get 100% development finance in some cases, but it's usually structured differently to a standard loan. Rather than funding the entire project with no input, lenders typically require additional security or experience to reduce their risk.

In most cases, 100% development finance means borrowing the full cost of a project by using additional security — such as another property — rather than providing a cash deposit.

How does 100% development finance work?

Development finance is usually split into two parts: land purchase and build costs. Some lenders may fund 100% of build costs and a percentage of the land value. To reach "100% funding", borrowers often use equity in another property, offer additional security, or work with joint venture partners.

Do you need a deposit?

Typically, yes — but not always in cash. Instead of a traditional deposit, lenders may accept equity in another property, existing land ownership, or additional assets as security.

Who can get 100% development finance?

Lenders are more likely to consider this type of funding if you have previous development experience, are working with an experienced team, have a strong project appraisal, and can demonstrate a clear exit strategy.

What is an exit strategy?

An exit strategy explains how the loan will be repaid. This could be selling the completed development, refinancing onto a long-term mortgage, or retaining and renting the property.

What are the risks?

100% development finance can increase risk, as you may be securing the loan against multiple assets, exposed to market changes, and responsible for cost overruns. Careful planning is essential.

Is 100% development finance common?

It's less common than standard development finance, but available in the right circumstances. Working with a broker can help you access lenders who specialise in this area.

FAQs

Is 100% development finance the same as a 100% mortgage?

No. 100% development finance typically refers to funding the full build cost, often alongside additional security rather than zero input from the borrower.

How does the exit strategy affect my application?

Lenders will scrutinise your exit strategy closely. A clear, realistic plan for repaying the loan — typically via property sale or refinancing — is essential for any development finance application.