Rate Tracker · UK · DEV FINANCE

As of 2026-04-23 · Next update 2026-04-30

UK development finance rates, tracked weekly.

Current rate ranges for every major UK development finance, bridging and mezzanine product. Compiled from public lender data and broker-panel commentary. Ranges, not midpoints — because real UK pricing is dispersed across sponsor quality.

BoE Bank Rate 4.25%
SONIA 4.19%
Products tracked 10

This week: Rates steady; specialists compete hardest on mezz and dev-exit

UK development finance pricing has been effectively flat for two consecutive quarters on the senior side. The Bank of England held Bank Rate at 4.25% in April, with markets now pricing in one more 25bp cut in 2026 rather than the two pencilled in at the start of the year. That's removed the downward pressure senior lenders were anticipating, and pricing has settled. Where there **is** movement is on mezzanine and development exit finance. Two private credit funds have raised new UK property books this year and their first deployments have pushed mezz pricing on the cleanest schemes toward 11–12% p.a. — the bottom of what was an 11–18% band twelve months ago. Dev-exit pricing has tightened similarly, with sales-period refi rates touching 0.55% pm for prime stock in regional towns. Stretched senior remains a competitive product where three new entrants have broadened the panel but not yet moved pricing. The gap between senior and mezz has narrowed in practical terms.

Senior development finance

Senior development debt
Mainstream senior debt for UK residential development schemes, secured first charge against the site. Interest typically rolled up to exit.
Headline rates have been essentially flat for two quarters as senior lenders wait for clearer Bank Rate direction.
6.5–9.0 % p.a.
LTV: 60–70% LTGDV Term: 12–24 months Ticket: £750k–£50m+
→ flat
Stretched senior development
Single-facility senior debt pushed above 70% LTGDV, blending senior + internal mezz into one product. Priced between pure senior and senior+mezz stack.
Appetite has broadened slightly — three new entrants in the last six months, but pricing has not moved materially.
8.0–11.0 % p.a.
LTV: 70–80% LTGDV Term: 12–24 months Ticket: £1m–£25m
→ flat
Mezzanine finance
Junior debt behind senior, secured on a second charge. Often combined with an exit fee or profit participation.
Small tightening on the bottom end as private credit funds increased allocation to UK mezz in Q1 2026.
12.0–18.0 % p.a.
LTV: up to 85–90% LTGDV combined Term: 12–24 months Ticket: £250k–£10m
↓ tighter

Bridging

Regulated residential bridging
FCA-regulated short-term secured loans for owner-occupied residential property — chain breaks, downsizing bridges, short-lease extensions.
Monthly rates drifting ~5bps lower on clean regulated cases as challenger banks re-entered the space.
0.55–0.85 % per month
LTV: up to 75% LTV Term: up to 12 months Ticket: £75k–£5m
↓ tighter
Unregulated (BTL / investment) bridging
Non-owner-occupied bridging secured on investment or commercial property. Dominant share of the UK bridging market by volume.
Pricing steady across the specialist non-bank market; adverse-credit product pricing moved slightly higher.
0.59–1.20 % per month
LTV: up to 75% LTV Term: up to 24 months Ticket: £100k–£15m
→ flat
Fast / auction bridging
Short-turnaround bridging for auction purchases or deadline-driven completions — typically privately-funded specialists.
Speed premium priced in; no material movement in 2026.
0.70–1.25 % per month
LTV: up to 70% LTV Term: 6–12 months Ticket: £100k–£5m
→ flat

Refurbishment & exit

Light refurbishment
Short-term finance for cosmetic refurbs not requiring planning — kitchens, bathrooms, decor, minor reconfigurations.
Stable; lender panel for light refurb is broad.
0.65–1.10 % per month
LTV: up to 75% LTV Term: up to 18 months Ticket: £100k–£3m
→ flat
Heavy refurbishment
Short-term finance for refurbs requiring planning or building control — conversions, extensions, structural work.
Small uptick in bottom-end pricing after two specialists tightened appetite on change-of-use refurb.
0.70–1.25 % per month
LTV: up to 70% LTV (day-1) Term: up to 24 months Ticket: £150k–£10m
↑ higher
Development exit finance
Refinancing a development loan onto cheaper short-term debt during the sales period post-practical-completion.
Pricing tightened as sales periods lengthen — more deals, more competition among exit lenders.
0.55–0.85 % per month
LTV: up to 75% LTV Term: up to 24 months Ticket: £250k–£20m
↓ tighter

Commercial

Commercial investment mortgages
Term mortgages on income-producing commercial property — offices, retail, industrial, mixed-use.
Pricing has steadied following the 2025 Bank Rate cuts; lender caution on secondary retail.
6.5–9.5 % p.a.
LTV: up to 65% LTV Term: 5–25 years Ticket: £500k–£25m
→ flat

How to read these rate ranges

Every range reflects what competitive sponsors on clean cases are actually paying. The low end of the range is achievable on strong covenant, prime location, or pristine credit. The top end is what a first-time developer or a slightly non-standard case typically sees.

Monthly (%/pm) rates apply to short-term / bridging products. Annual (%/p.a.) rates apply to development and commercial mortgages. They're not directly comparable — 0.75% pm ≈ 9% p.a. on a non-compounded basis, but rolled-up interest compounds.

FAQ

What are current UK bridging loan rates (2026)?

As of April 2026, regulated UK residential bridging is 0.55–0.85% per month, and unregulated (BTL / investment) bridging is 0.59–1.20% per month on competitive cases. Actual pricing depends on LTV, property type, exit quality and loan size.

What are UK development finance rates right now?

Senior UK residential development debt sits at 6.5–9.0% p.a. for mainstream 60–70% LTGDV facilities. Stretched senior pushes rates to 8.0–11.0% p.a. for 70–80% LTGDV. Mezzanine behind senior is 12–18% p.a.

How often are these rates updated?

Weekly, every Thursday. Individual rate ranges are refreshed when at least three lenders on the panel adjust pricing in the same direction.

Where do these ranges come from?

Public lender product sheets, broker panel commentary from Construction Capital and similar whole-market brokers, and cross-referenced against published industry indices. We show range rather than midpoint because UK pricing is genuinely dispersed across sponsor quality.

Want the full historical series? See the archive. Want to understand the methodology behind the ranges? See the methodology page.