Bridging finance for ground-up builds

Fast capital that keeps sites moving

Bridging finance has become the go-to short-term solution for ground-up builds across Great Britain. Developers choose it because decisions can land in days rather than months, allowing you to secure sites at auction, complete time-critical land purchases and move seamlessly from planning to spade in the ground. Where a traditional development mortgage may stall on timing or criteria, bridging provides fast, flexible capital that aligns with construction milestones and real-world project rhythms.

Unlike a one-off lump sum, many facilities release funds in stages against verified progress. That keeps interest lower by avoiding charges on money you have not yet used and helps match cashflow with works on site. Typical structures can cover a high proportion of build costs, with overall gearing often limited to a sensible percentage of Gross Development Value. For experienced sponsors with solid teams and a credible exit plan - sale or refinance - pricing can be competitive for the term required.

What matters most is clarity. Lenders want a robust project pack: planning status, detailed cost plans, contractor credentials and a realistic route to exit. With that in place, bridging can unlock land, fund demolition and rebuild, and support mixed-use schemes that mainstream lenders might decline. The end result is momentum: the ability to commit, mobilise and deliver while the opportunity is still on the table.

Speed plus structure - staged drawdowns mean you only pay for funds when your project actually needs them.

Who benefits from this approach

Ground-up residential and mixed-use developers who need decisions fast, particularly where auction timelines or vendor deadlines are non-negotiable. It also suits experienced landlords stepping into development, SMEs building infill plots, and regional housebuilders balancing multiple sites. First-time developers can still access funding, but should expect tighter leverage and closer monitoring unless partnering with experienced professionals. If you are operating across England, Wales or Scotland, bridging can flex to local planning routes and market conditions while remaining focused on delivery.

Your funding pathways

1. Senior bridging for land and build - staged drawdowns tied to milestones.

2. Development bridging with monitoring - integrated cost control and QS reporting.

3. Senior plus mezzanine - higher leverage to lift total project funding.

4. Senior plus JV equity - share risk and upside for complex schemes.

5. Bridge-to-development mortgage - short-term speed, then refinance once conditions are met.

6. Exit bridge - short final tranche to reach sales or long-term refinance.

Cost, impact, returns and risks

What lenders look for

Eligibility hinges on experience, evidence and team strength. A solid track record improves pricing and leverage because it reduces perceived execution risk. Lenders want a comprehensive pack: planning consent or a clear path to it, professional cost plans with contingency, contractor CVs, fixed-price or well-scoped contracts where practical, and a cashflow that shows how staged funds translate into progress on site. Expect monitoring by a surveyor to validate each drawdown.

Newer developers are not excluded, but underwriting typically tightens. That might mean lower leverage, higher rates or additional security until competence is proven. Regional dynamics matter across GB - local contractor availability, build-cost variance and comparable sales data influence appetite and structure. As a UK-based retail finance broker, Kandoo can help refine your pack, introduce experienced professionals and match your scheme to lenders that fit your sector, location and risk profile.

From decision to drawdown - the steps

1. Share outline plans, timescales and exit assumptions.

2. Build your project pack with budgets and programme.

3. Receive terms indicative and compare total-cost scenarios.

4. Appoint valuation and monitoring professionals promptly.

5. Legal due diligence and condition review completed.

6. Initial advance completes - land or early works funded.

7. Staged drawdowns released against verified milestones.

8. Exit delivered via sale or refinance on completion.

Weighing the upsides and trade-offs

Put safeguards in place before you commit

Before proceeding, pressure test your exit. If sales soften or refinance criteria tighten, a shortfall can emerge right when the facility matures. Build robust contingencies into your cost plan and programme, especially where ground conditions or service diversions are uncertain. Fix prices where feasible, and scrutinise contractor capacity and supply chain resilience. Align drawdown timings with lead times for key materials, and model interest accrual to reflect realistic programme risk, not the best case. Finally, ensure you understand whether your facility is regulated or unregulated for your circumstances and seek appropriate advice where regulation applies.

Alternatives that may suit your scheme

1. Traditional development mortgage - lower ongoing cost but slower and stricter.

2. Specialist term loan - suitable once pre-lets or presales are secured.

3. Mezzanine finance - boosts leverage alongside senior debt at higher cost.

4. Joint-venture equity - shares risk and upside without additional debt.

5. Asset refinance or second charge - raise working capital from existing holdings.

Frequently asked questions

Q: How quickly can bridging be arranged for a ground-up build? A: Indicative terms often arrive within days, with completion in 1-3 weeks subject to valuation, legal work and a complete project pack.

Q: Will lenders fund 100 percent of my build costs? A: Many will consider up to full build cost coverage, but overall exposure typically caps around 65-75 percent of GDV, so equity is usually needed for land.

Q: What proves a credible exit? A: Forward sale agreements, realistic sales appraisals, or a term-sheet pathway to development or buy-to-let refinance supported by valuation and projected rental cover.

Q: Can first-time developers qualify? A: Yes, but expect lower leverage, stronger security and tighter monitoring. Partnering with an experienced contractor and professional team can materially improve outcomes.

Q: How are drawdowns released? A: Funds are staged against certified milestones. A monitoring surveyor or QS validates progress and approves each release to align payments with works.

Q: Are these loans regulated? A: Many development facilities are unregulated commercial arrangements. If the borrowing is for a consumer purpose or secured on a primary residence, regulation may apply - take advice.

How Kandoo helps move your project forward

Kandoo is a UK-based retail finance broker that connects developers with specialist lenders across England, Wales and Scotland. We shape robust applications, coordinate valuations and monitoring, and compare structures including mezzanine or JV options. Our goal is clear: secure fast, fit-for-purpose funding with an exit that stands up to scrutiny. Speak with us to test scenarios and lock in timelines.

Important information

This guide is for information only and is not advice. Eligibility, pricing and terms depend on your circumstances and lender criteria. Bridging and development finance can be high risk if exits fail. Seek regulated advice where applicable.