What is development exit finance?
It's a type of bridging loan used at the end of a build. Finanta describes it as paying off the outstanding loans on a development that has recently completed or is nearly complete, usually at a lower rate than the original development loan. Some lenders call it sales-period finance. For bridging in general, see our guide to bridging loans for investors.
Why would a developer use it?
Development loans have a fixed end date. GB Bank sums up the problem: as completion approaches, developers either sell units in a hurry to hit that date, or pay to extend at a higher rate. An exit loan repays the development facility and runs long enough to sell or refinance in an orderly way. Uses lenders list include:
- Refinancing a development loan before it expires.
- Buying time to market and sell the units.
- Releasing equity from finished units to fund the next site (subject to valuation).
- Moving onto longer-term finance, such as a commercial or buy-to-let mortgage.
What do lenders publish?
Examples from named lenders' own pages, read on 2 November 2026. These are not offers.
| Lender | Loan size | Max LTV | Term | Rates from (per month) |
|---|---|---|---|---|
| London Credit | Up to £3.5m | 70% | 3–18 months | 0.77% |
| GB Bank (intermediary page) | From £500k | 75% residential, 65% commercial | 3–18 months | 0.79% |
| Finanta | £26k–£25m | 75% | 3–12 months | 0.75% |
London Credit lists a 2% arrangement fee. GB Bank lists a minimum interest charge of six months. Compare the fees as well as the rate.
What will a lender need?
Commercial Trust says the properties must be at least wind and watertight, and asks for a viable exit strategy, equity in the property and evidence of the work completed, including planning permission and warranties. Expect to provide:
- The existing facility's balance, expiry date and any exit fee.
- A practical completion certificate, or a realistic date for it.
- A current valuation and sales evidence (reservations, exchanges, the agent's view).
- Your exit: unit sales, a refinance, or both.
When should you arrange it?
Well before the development loan expires. If you leave it until the last few weeks, you have fewer options, and penalty or extension rates on the existing loan may already apply. If you're still at the planning or build stage, see development finance.
Is bridging right for you?
Bridging is short-term borrowing secured on property, and the lender can take that property if the loan isn't repaid. Only use it with a realistic exit, and compare it with a standard buy-to-let or commercial mortgage first — if you have time to wait for one, it usually costs less. Speak to your accountant or solicitor if you're unsure.