Residential & Commercial Loans from £250,000 with no upward limit.

Fox Davidson are professional brokers of property development finance. We secure house builder mortgages in Bristol and Bath where we have offices to meet our clients.

As a professional broker we can secure senior debt as well as mezzanine finance to top up lending. We have access to banks and broker only lenders and will secure the best possible terms for our house builders requiring development finance.

House Builder Mortgages – Typical Terms

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  • Senior Debt of up to 75% of Gross Development Value
  • 100% of Build Costs
  • Term: 3 Months to 24 Months
  • Amount: £250,000 to £25 Million Plus, Larger Amounts By Negotiation.
  • Funds released in stages, subject to sign off from architect or bank surveyor
  • Planning is generally needed although bridging finance terms are possible for land without planning.
  • Rates from Bank base rate plus 3.5%

Development Finance Fees

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  • Arrangement fee – 1 – 2%
  • Exit Fee – Nil to 2 % of loan amount or GDV
  • Broker Fee – Where possible we will waive our fees but we may also charge up to 1%
  • Valuation fees – Vary depending on site value. There will be ongoing survey costs as the build progresses

Case Study

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Fox Davidson were approached by an experienced property developer to secure a house builder mortgage in Bath. The finance would allow the client to refurbish 2 flats and also to build a large 4 bedroom house on the land next to the existing flats.

The developer had used development finance before but as is often the case the terms they had secured were extortionate. Fox Davidson were able to present the case to a local bank who offered market leading terms.


The Proposal

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To purchase a property in Bath for renovation. In addition, the property had planning approval for a detached house on the land adjacent. The total purchase price was £1.1 Million.

The existing property consisted of two flats under one freehold. This property would be renovated and then let out on 12 month AST’s.

A new build 4 bed detached house would be built on the land, this also needed financing.


The Development Finance Terms

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  • 65% loan to value against against the existing property.
  • 3.75% above base rate.
  • Terms for the development also agreed at 3.75% above base rate, released in stages, up to 65% loan to gross development value.
  • 1% Lenders fee
  • £995 Broker fee.

Exit Finance

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On completion of the house builder mortgage in Bath, Fox Davidson secured buy to let finance secured on the freehold title. The refinance secured a lower rate of interest and released capital for onward development projects in Bath.


For Development Finance in Bath contact 01225 946606. Development Finance in Bristol Call 01179 897950.