KIS Bridging Loans
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Tailored Development Finance for Your Project

We arrange finance for a wide variety of development projects ranging from building a new house next to your own home, to high value luxury apartment complexes and large hotel developments.

As independent development finance brokers we are able to search the whole market and negotiate the best possible interest rates, fees and terms.

“We not only work hard to source the finance facility required to make your development possible, but also the best possible loan deal in order to maximise your project’s profits!”

Our extensive panel of lenders allows us the ability to offer a comprehensive range of lending options that can facilitate most development projects:


  • Loans from £100,000 to £1 billion
  • Fast decisions and full terms provided
  • Fast funding
  • Best possible deals
  • Funding unusual developments
  • 100% funding available
  • 100% Construction finance
  • Mezzanine finance
  • Joint venture funding
  • Up to 70% end value (GDV)
  • Available throughout the UK
  • Building new houses, flats and maisonettes
  • Luxury apartment developments
  • Care homes
  • Hotels
  • Fitness centres
  • Offices
  • Factories
  • Shops
  • Property conversions
  • Restoration projects
  • Property expansion


How we arrange the best possible development finance deals for our clients

In order to prepare the most suitable finance options, we take the time to fully understand our client's project and funding requirements. Once we have identified the best development finance options, we discuss the procedures, requirements, costs, advantages and any disadvantages, of each of the available options.

When an option has been decided upon, we will work hard to arrange that facility, ensuring that it is in place quickly and with the minimum of hassle.

Extensive finance facilities available

The best deals on property development finance are available when borrowing up to 60% of the land cost, 100% of the development cost and up to 60% GDV (gross development cost).

However we do have facilities available up to 70% land cost, 100% development costs and 70% GDV. We can also fund 100% of all property development costs if additional security is available.

We will always compare all the best lenders to find the best available deals.

For large facilities we have dedicated specialists who solely work on providing funding facilities of £5 million to £1 billion. They specifically work with lenders who have minimum loan amounts starting from £1 million, therefore specialising in funding large developments.

About development finance

Development finance is used by property developers to fund a wide variety of building projects. These include building brand new single residential properties, large housing estates, industrial units, offices, apartment blocks, factories and hotels. Development finance can also be used for new builds, property restoration, expansion, or conversion projects.

This type of lending can be used for property conversions such as turning an old mill or old retail premises into flats. They can also be used to fund expansion, for example a client may have an industrial unit and want to build another one next to it, or expand an existing care home or hotel.

Similar to bridging, a development loan is intended as a short term option, with lenders expecting their money to be paid back once the project has been completed and sold, or alternatively refinanced.

A lender will lend against the value of the land (up to 70%) and also provide the build costs (100% of this is common). The lender is interested in how much the land is worth before construction begins and what the total building costs will be together with any other associated costs. Then most importantly they want to know what the property development will be worth once it is finished. This is known as the Gross Development Value or GDV.

Land cost + build cost (including architects, solicitors, etc) = total cost

GDV will be an estimate to how much the development will be worth upon completion.

Taking the total cost away from the GDV will demonstrate what the project could be worth.

GDV – Total cost = Profit

A lender will want to see a healthy profit in order to proceed.

Typical development finance institutions will release money for the initial purchase of the land followed by staged payments as the construction progresses.

Advantages of development finance

The main advantage over other methods of finance is that it can provide the largest funding facility.

Funds can be raised at the start of the project secured against the value of the plot (or other security if available). Then as construction progresses, and the plot becomes more valuable, further funds can be released. Many lenders will actually provide funding for 100% of the construction costs, lending against the anticipated end value of the project.

There are also other advantages:

  • Property that would be considered as unsuitable security to other lenders can be used, such as derelict, run down buildings.
  • Interest can be added to the facility meaning monthly income is not an issue in underwriting and affordability calculations.
  • Medium and long term finance options can be expensive when only required for a short term.
  • Funds can be released in stages throughout the project, rather than all the start. This reduces interest charges as interest is only charged on funds that have been received.

100% development finance

100% facilities can of course be arranged with additional security.

If additional security is not available, then provided there is enough profit in the project once the development has been completed, the mainstream lenders will typically lend up to 60% of the land cost or value, and then 100% of the build costs. Some lenders will lend more than 60% of the land value/cost for the right project, plus there are options to increase funding further through mezzanine finance or joint venture funding.

Development finance interest rates and costs

There are many different lenders, many of whom offer a range of facilities and options that can be structured differently. The costs involved with setting up a property development loan can be charged in a number of different ways.


The main development finance costs

Facility fee

This is also referred to as an arrangement fee or the amount in, as is charged as a percentage of the net or gross loan amount.

Interest rate

Interest rates can be advertised and charged on a monthly or annual basis. Therefore we may see rates advertised from 1% per month with one lender or 7% per annum with another. The rate of interest charged will vary from lender to lender, but will also depend on the amount of funding required, the security available, the type of development and the experience of the developer.

Exit fee

The exit fee is sometimes a percentage of the loan amount, but it can also be a percentage of the Gross Development Value (GDV) and not the amount being borrowed.

Broker fee

This is a fee charged by a broker for arranging a finance facility. This can be a fixed cost fee or a percentage of the loan amount being arranged.

The above 4 costs are the main ones to consider. There will always be an interest rate and for the vast majority of loans a facility fee. For the majority of development loans there are exit fees, but there are facilities where this is not applicable.

There are often brokers fees, usually charged as a percentage of the loan facility as a payment to the finance broker. However, we do not charge broker fees! Lenders pay an introductory fee so we do not feel the need to charge additional brokers fees.


Other development finance costs that should also be considered

Valuation fees

The initial valuation fees can be expensive as a surveyor has to value the security to determine its current open market value, forced sale value and also provide an estimate to the value of the project once it has been completed.

Application fees

These are sometimes referred to as commitment fees and are charged by some lenders or brokers at the start of the application process. KIS does not charge application fees.

Legal fees

Solicitor costs for the applicant and also the lender that will ultimately be paid for by the applicant.

Administration fees

Lenders tend to include some administration fees in their agreements.

Monitoring fees

As it progresses a lender will want to keep an eye on their investment so will usually instruct a surveyor (could be a property surveyor or quantity survey) to make regular inspections at the construction site. The cost of this is covered through monitoring fees paid by the borrower.

Draw down fees

Funds are usually released in stages, as the development increases in value and also this helps to keep the interest charges to a minimum. However a lender may charge a draw down fee for each release of funds.

Telegraphic Transfer fee (TT Fee)

Due to the large amounts usually involved, funds are usually sent from the lenders account by telegraphic transfer. The banks charge a small fee for this service which the lender will usually pass on directly to the borrower.