Manchester Development Finance FAQ

Development finance is a specialist short-term loan designed to fund the construction, conversion, or refurbishment of residential and commercial property. In Manchester, development finance typically covers between 60% and 90% of your total project costs, depending on the funding structure. The loan is drawn down in stages as construction progresses, with interest usually rolled up into the facility rather than paid monthly. Manchester's booming regeneration pipeline — driven by the Places for Everyone framework and major schemes across NOMA, Ancoats, and Salford Quays — means lender appetite for Greater Manchester projects is consistently strong. Our development finance services cover schemes from £500K to £20M across all ten GM local authority areas.

Manchester development finance facilities typically range from £500,000 to £20,000,000, depending on your scheme size, borrower experience, and the gross development value (GDV). Senior development finance covers up to 70% of total costs, while stretch senior facilities can reach 85% LTC for experienced developers. For larger schemes in areas like Salford Quays or Victoria North, layered funding structures combining senior debt and mezzanine can take total borrowing up to 90% of costs. Use our development finance calculator to model borrowing scenarios for your specific project.

Interest rates for Manchester development finance currently range from 7.5% to 12% per annum, depending on the loan-to-cost ratio, your experience as a developer, the scheme location, and overall lender appetite. Senior facilities at lower leverage typically attract the most competitive rates, while stretch senior and mezzanine products carry higher rates reflecting their increased risk. The Manchester market benefits from strong lender competition — regional challengers, specialist funds, and national development lenders all maintain active pipelines across Greater Manchester. Our panel of 50+ specialist lenders ensures we can source the most competitive rate for your scheme.

We issue indicative terms within 48 hours of receiving a complete enquiry. Full completion typically takes two to four weeks, depending on valuation turnaround, legal complexity, and borrower responsiveness. For straightforward Manchester schemes with experienced borrowers and clean titles, we have completed funding in as little as 10 working days. Our established lender relationships and deep understanding of the Manchester market enable us to fast-track applications. Visit our how it works page for a detailed breakdown of the application timeline from initial enquiry to drawdown.

We finance all types of development projects across Greater Manchester: new-build residential schemes (apartments, townhouses, and BTR developments), commercial-to-residential conversions, office refurbishments, mixed-use developments, permitted development schemes under Class MA, and purpose-built student accommodation. From warehouse conversions in Ancoats to large-scale regeneration projects in Stockport Town Centre, our lender panel has appetite for the full spectrum of Manchester development opportunities. Read our case studies to see real examples of projects we have funded across the region.

Most lenders require at least outline planning permission or prior approval before committing to a development finance facility. However, some specialist lenders on our panel will consider pre-planning funding for experienced developers with viable schemes and strong track records. For permitted development conversions under Class MA, prior approval from the relevant Manchester planning authority is usually sufficient. Manchester's ten local planning authorities each have different processing times and policy requirements — our knowledge of the local planning landscape helps us match you with the right lender regardless of your planning stage.

Mezzanine finance is a second-charge development loan that sits behind the senior facility, allowing Manchester developers to increase total borrowing to 85-90% of project costs. This is particularly valuable for capital-efficient developers working on high-value schemes in prime Manchester locations who want to minimise their equity contribution. Mezzanine rates are typically higher than senior debt — usually between 10% and 15% per annum — but significantly cheaper than diluting your returns through equity partnerships. Our mezzanine finance service has arranged millions in second-charge facilities for developments across Greater Manchester.

We cover all ten Greater Manchester local authority areas: Manchester, Salford, Stockport, Tameside, Oldham, Rochdale, Bury, Bolton, Wigan, and Trafford. Our key development hotspots include NOMA, Ancoats, Salford Quays, Piccadilly, Victoria North, and Stockport Town Centre. We have deep local knowledge of each area's planning policies, regeneration priorities, and lender appetite, which enables us to present your scheme in the strongest possible light to the most appropriate lenders.

A typical Manchester development finance application requires: a detailed scheme appraisal or feasibility study, planning permission or prior approval documentation, a cost schedule from your QS or contractor, your development CV showing previous projects, 12 months' bank statements, proof of equity contribution, and details of your professional team including architect, solicitor, and contractor. For first-time developers, additional documentation demonstrating relevant construction or property experience may be beneficial. Our step-by-step process page explains exactly what is needed at each stage, and our team will guide you through the documentation requirements specific to your situation.

A specialist Manchester development finance broker understands the local market dynamics that national brokers and high street banks simply miss — from the GM Combined Authority's regeneration priorities to individual council planning policies and area-specific lender appetite. With over £300M arranged and 20+ years of experience in property finance, our team has the relationships and local expertise to secure better terms, faster completions, and higher approval rates for your Manchester scheme. Read our case studies to see real examples of deals we have structured, or visit our about page to learn more about our team's credentials.

LTV (loan-to-value) measures the loan amount as a percentage of the property's current or completed value, while LTC (loan-to-cost) measures the loan as a percentage of the total development cost including land, construction, and professional fees. In Manchester development finance, LTC is the more commonly used metric because it reflects the actual funding requirement relative to total project expenditure. Typical Manchester senior facilities offer 65-70% LTC, stretch senior products reach 80-85% LTC, and layered structures with mezzanine can achieve up to 90% LTC. Use our loan calculator to see how different leverage levels affect your project economics.

Yes, first-time developers can access development finance in Manchester, though the terms and lender options differ from those available to experienced borrowers. Several lenders on our panel operate dedicated first-time developer programmes, typically requiring the borrower to demonstrate relevant construction or property industry experience, engage an independent monitoring surveyor, and potentially accept a slightly lower LTC ratio. Our team specialises in presenting first-time borrowers in the strongest possible light — our Victoria North case study demonstrates how we secured £8.7M at 75% LTC for a first-time developer with a construction management background. Contact us to discuss your first project.

Manchester development finance typically involves several fee components: an arrangement fee of 1-2% of the facility amount (paid at drawdown or deducted from the loan), a valuation fee covering the lender's independent valuation of your scheme (usually £3,000-£10,000 depending on scheme size), legal fees for both borrower and lender solicitors, and a monitoring surveyor fee for progress inspections during construction. Exit fees of 1-1.5% may also apply with some lenders, though many Manchester-active lenders have removed exit fees to remain competitive. We provide a full cost breakdown before you commit to any facility. Visit our how it works page for a detailed explanation of all costs involved.

Development exit finance is a specialist refinancing product that replaces your senior development facility upon practical completion of your Manchester scheme. It is designed for developers who have finished construction but have not yet sold all units — allowing you to repay the more expensive development loan and switch to a lower-cost facility while you complete sales at your own pace. Exit finance rates in Manchester typically range from 6% to 9% per annum, materially cheaper than development finance. This product is especially valuable in the current Manchester market where developers may choose to hold completed units to achieve optimal pricing. Explore our full range of development finance services to understand how exit finance fits within your funding strategy.

Build-to-rent (BTR) finance is a specialist form of development funding designed for schemes that will be retained as rental investments rather than sold to individual buyers. Manchester is the UK's leading regional BTR market, with institutional investors from Legal & General to Moda Living actively acquiring completed schemes across Salford Quays, Piccadilly, and the wider city centre. BTR development finance is structured differently from standard development loans — the exit is typically an institutional bulk sale or long-term refinancing rather than phased unit sales. Our team has extensive experience structuring BTR facilities in Manchester. Get in touch to discuss your BTR project.