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Thinking about starting your first property development project in 2026? Getting the finance in place is often the biggest hurdle, but it doesn’t have to be a headache. Check out our simple 5-step guide to securing the funding you need to get your project off the ground!
So, you’ve spotted a rundown terrace in Chadderton that’s crying out for a renovation, or maybe a plot of land in Oldham with "new build" written all over it. You’ve got the vision, you’ve got the drive, but there’s just one thing missing: the capital.
If you’re new to the world of property development, looking at the financing side can feel like staring at a mountain you aren’t quite equipped to climb. At Hunter Capital, we spend our days helping people just like you turn those blueprints into reality. I’m Naz Islam, and my goal is always to strip away the jargon and make complex finance feel simple.
Securing property development finance isn't just about having a big bank balance; it’s about proving to a lender that your project is a winner. Here are the five steps you need to follow to get that "Yes."
1. Feasibility & Planning: The Numbers Must Stack Up
Before you even think about picking up the phone to a lender, you need to do your homework. In the world of development, "winging it" is a recipe for disaster. Lenders want to see a rock-solid business plan where the numbers make sense.
First, you need to understand your Gross Development Value (GDV). This is the estimated market value of the property once all the work is finished. If you’re building in a booming area like Oldham, looking at local trends can help. For instance, the Chadderton property guide shows why certain suburbs are booming and what buyers are looking for in 2026.
Next, you need a detailed breakdown of costs:
- Purchase price: What are you paying for the land or the shell?
- Hard costs: Bricks, mortar, labour, and materials.
- Soft costs: Architect fees, planning permission, legal fees, and our personal favourite, broker fees.
- Contingency: Always, and I mean always, include a 10-15% buffer. In 2026, material costs can still fluctuate, and you don’t want a surprise bill to stall your project.
If your total costs (including interest on the loan) are too close to the GDV, the project isn't feasible. Lenders usually look for a profit margin of at least 20% to consider the risk worth it.
2. Experience: Lenders Love a Track Record (or a Good Team)
This is the part that usually worries new developers. "How can I have a track record if this is my first project?"
It’s a fair question. Lenders are naturally cautious. They want to know that the person they are lending hundreds of thousands of pounds to won't make a mess of it. If you don't have personal experience, you need to "borrow" it by building a professional team.
When you present your application, include the CVs or portfolios of your:
- Main Contractor: Have they done similar projects before?
- Architect: Do they have a history of getting planning through in the local area?
- Project Manager: Who is keeping everything on schedule?
By surrounding yourself with pros, you lower the risk in the lender's eyes. At Hunter Capital, we’ve seen many first-time developers get approved because they had a stellar team behind them. If you’re transitioning from being a landlord to a developer, highlighting your success with buy-to-let mortgages can also help show you understand the property market.
3. The Deposit: How Much Skin in the Game You Need
Let’s talk money. Property development finance isn't like a standard residential mortgage where you might get away with a 5% or 10% deposit. Lenders want to see that you have "skin in the game."
For a new developer in 2026, you’re typically looking at two key ratios:
- LTC (Loan to Cost): Lenders will often fund 70-90% of the actual construction costs.
- LTV (Loan to Value): They will usually lend up to 60-70% of the final GDV.
Usually, you’ll need to put up around 30-40% of the total project cost yourself. This can come from personal savings, equity from other properties, or even private investors. If you’re short on the initial purchase price but have a solid plan, you might consider bridging loans to secure the site quickly while you finalise the development funding.
Remember, the more money you put in, the better the interest rates you’ll likely receive. Lenders reward lower risk with lower costs.
4. Finding the Right Lender: Hunter Capital’s Specialty
This is where many new developers get stuck. If you walk into a high street bank and ask for property development finance for your first project, you might be met with a polite (or not-so-polite) "no." High street banks are often too rigid for the fast-paced, high-risk world of development.
The "easy" way to find a lender is to work with a specialist broker. Why? Because we have access to a huge range of niche lenders, private banks, and specialist funds that you won't find on Google.
Every lender has a "type." Some love heavy structural renovations; others prefer ground-up new builds. Some only lend in London; others, like the ones we work with, see the massive potential in places like Oldham and Greater Manchester.
Our USP at Hunter Capital is simple: we take the complex, jargon-heavy world of finance and make it easy for you. We know which lenders are "hungry" for new business and which ones will be most sympathetic to a first-time developer. For a deeper dive into why this matters, take a look at our post on why finding a mortgage broker in Oldham is better than going to your high street bank.
5. The Exit Strategy: How You’ll Pay It Back
Lenders are like guests at a party, they want to know how they’re going to leave before they even walk through the door. This is your "Exit Strategy."
You generally have two main options:
- Sell the property: You finish the build, sell it on the open market, and pay off the loan with the proceeds.
- Refinance: You keep the property as a rental. You take out a long-term buy-to-let mortgage (often called a "development to let" switch) to pay off the development loan.
If you plan to rent the property out, especially if it’s an HMO (House in Multiple Occupation), you need to ensure the rental income will cover the new mortgage. In 2026, many Oldham investors are maximizing yields with HMOs, but you need a clear path to that final mortgage from day one.
If your exit strategy is "I'll figure it out later," you won't get the funding. Lenders need to see that you’ve researched the market and have a backup plan (like a bridging loan) if the property takes longer to sell than expected.
Frequently Asked Questions
Can I get development finance with no experience?
Yes, but it’s harder. You’ll likely need a higher deposit and a very experienced team (contractors and architects) to give the lender confidence.
What is a "staged drawdown"?
Development finance isn't usually given in one lump sum. You get the money for the land, and then the rest is released in stages (drawdowns) after a surveyor visits the site to confirm work has been completed to a certain standard.
How long does it take to get approved?
It varies, but typically 4 to 8 weeks. However, if you are in a rush to secure a property at auction, a bridging loan can often be arranged much faster.
Do I need planning permission first?
Most lenders will require "Full Planning Permission" before they release the development funds. Some might offer a loan to buy the land "subject to planning," but the rates are usually much higher.
Final Thoughts from Naz
Property development is a high-stakes game, but the rewards: both financial and the satisfaction of building something: are huge. Don't let the complexity of the finance side stop you.
At Hunter Capital, we’re here to handle the spreadsheets and the lender negotiations so you can focus on the site visits and the design. We’ve helped countless developers across Oldham and beyond secure the funding they need. You can see some of our previous successes on our case studies page.
Ready to get your project moving?
Don’t leave your project’s success to chance. Whether you’re looking for your first development loan or looking to refinance an existing project, let’s have a chat.
[Book a free consultation with Hunter Capital today] and let’s make your property goals a reality.