You’ve found the site, run the numbers, and are ready to make your first move as a property developer, but, how do you actually fund it? Choosing the right finance can make or break your first project. The wrong loan structure can eat into your profit, cause delays or even force a sale before you’re ready.

Let’s break down your options.

When to Use Bridging Finance (And Risks to Watch)

Bridging loans are short-term, fast-access loans designed to ‘bridge’ a gap, usually between buying and refinancing or selling.

They’re typically used for:

• Purchasing property quickly (e.g. auctions or distressed sites)
• Short renovation or conversion projects
• Buying before planning permission is granted

Pros:

• Fast to arrange (days, not weeks)
• Can fund up to 75% of the property’s value
• More flexible on property condition or planning

Risks:

• Higher interest (monthly, not annualised)
• Fees can add up: arrangement, exit, valuation, legal
• Tight timelines – delays can become costly

If you’re using bridging finance, you need a clear exit strategy, whether that’s refinancing with a development loan or selling fast.

How Development Finance Works (Fees, Rates, Stages)

Development finance is designed specifically for construction, refurb, or new build projects. Unlike bridging, it’s usually released in stages, based on build milestones and surveyor sign-offs.

You’ll typically need:

• A solid project plan and team
• Costed schedule of works
• Minimum 10–20% deposit for some lenders, but often more

In practice, most developers contribute around 25-30% of the land or property cost upfront. Lenders may finance up to 100% of the build costs, but your ability to secure favourable terms depends on the overall project structure and risk. The developer’s own contribution for the initial site purchase is usually around 35% or lower, depending on experience and lender confidence.

Fees & terms:

• Lower rates than bridging, but strict conditions
• Interest is often rolled up, not monthly
• Lender fees include arrangement, monitoring, and exit

For larger or multi-phase builds, development finance offers better long-term support, but it takes longer to arrange and requires more documentation.

Alternatives: Investor Capital, JV, SSAS

You’re not limited to loans. Many first-time developers also use:

• Private investor capital: friends, family, or networks contributing funds for a return
• Joint ventures (JVs): partnering with experienced investors or developers for shared profit
• SSAS pensions: if you’re a business owner, you may be able to use pension funds to loan back into your company tax-efficiently

Each option comes with legal, tax and structural considerations. The right mix can reduce your reliance on external lenders and improve profit retention.

Choosing the Right Lender for Your Project Type

Every lender has a risk profile and preferred project type. Some specialise in heavy refurbs, others in ground-up new builds or commercial-to-resi conversions.

GoldHouse works with a panel of lenders, brokers, and investors and we help you choose based on:

• Your experience level and capital available
• The asset type and location
• Planning risk and exit strategy
• How the finance aligns with your business structure

This can also influence your tax outcome, especially when combined with SPVs, holding companies, or pension vehicles.

Prepping for Loan Approval: What You’ll Need

To get approved quickly and on good terms, you’ll need a strong finance pack. This includes:

• Company structure (SPV, Ltd, etc.)
• Project appraisals and GDV estimates
• Build schedule and cash flow forecast
• Team CVs (builder, architect, etc.)
• Personal guarantees or collateral (if required)

We help clients prepare lender-ready packs that reduce delays, boost confidence and often improve the rate offered.

Clarity, Confidence, and Long-Term Strategy

Funding your first development doesn’t need to feel overwhelming. With the right structure, advice, and guidance, you can protect your time, maximise returns, and lay the foundation for a long-term property portfolio.

At GoldHouse, we don’t just help you borrow – we help you build smart. With strategic financial planning, expert tax advice, and full-lifecycle support, you can go from first deal to future developer with clarity and control.