The Dev Exit Playbook · UK · 2026

Chapter 2 · Choosing a lender

The three categories of UK dev exit lender — and how to pick.

Dev exit is a small, specialist product. The UK market is carved into three lender types, each good at a different kind of deal. Knowing which is which shortens the whole process.

1. Challenger banks

Shawbrook, Aldermore, United Trust Bank, and a handful of others. These are FCA-authorised banks with a specialist appetite for short-term property debt. They offer dev exit finance, though it's not always their headline product.

Strengths:

  • Lowest rates on clean deals — typically 0.55–0.70% pm on strong sponsors
  • Committed credit approval — the answer doesn't change post-valuation
  • Bank-regulated counterparty comfort for equity partners or JV investors

Weaknesses:

  • Slow — expect 4–8 weeks to complete, sometimes longer
  • Tight criteria — adverse credit, non-standard construction, or foreign nationals often fail
  • Bigger ticket preference — below £1m facility, they usually decline

Best for: Strong covenant, clean scheme, larger ticket, time flexibility.

2. Specialist non-bank lenders

Together, West One Loans, MT Finance, LendInvest, Hope Capital, Octopus Real Estate, Roma Finance, Tuscan Capital, and a dozen smaller operators. Non-bank means they're not regulated as deposit takers — they fund through private credit, institutional wholesale lines, or P2P platforms.

Strengths:

  • Speed — 2–4 weeks to complete is standard, 10–14 days on a clean case
  • Flexible criteria — adverse credit, non-UK sponsors, complex title all considered
  • Sector breadth — many do HMO, BTL, commercial, semi-commercial on the same facility

Weaknesses:

  • Higher rates — typically 0.65–0.85% pm on comparable deals
  • Tighter LTVs — rarely above 70% on dev exit, sometimes capped at 65%
  • Variable covenant aggressiveness — see chapter 3

Best for: Speed-critical deals, slightly non-standard cases, £300k–£10m tickets.

3. Private credit funds

A growing segment. Pluto Finance, Assetz Capital's institutional side, Arc & Co's fund lines, and a handful of family office–backed lenders that take larger-ticket dev exit positions. Less visible than the first two categories but increasingly important on big schemes.

Strengths:

  • Larger ticket capacity — £10m+ is normal, £25m+ achievable
  • Structural flexibility — partial drawdown, mezzanine behind senior, profit share all on the table
  • Relationship-led — they'll back a strong sponsor on a difficult scheme

Weaknesses:

  • Rates vary — 0.70–1.10% pm, sometimes higher
  • Longer lead time — full committee process can take 4–6 weeks
  • Opaque — pricing is case-specific, hard to benchmark without a broker

Best for: Large ticket, complex structures, experienced developer with long lender relationships.

How to compare three offers

Most dev exit deals close with 2–3 lenders quoting. Compare on:

  1. All-in cost. Rate × months + fees + legals + valuation. The calculator does this, or ask each lender for a written all-in illustration.
  2. Covenant flexibility. Sales-trigger thresholds, minimum monthly sales, extension provisions — see the next chapter.
  3. Exit optionality. Can you repay early without breakage fees? Can you extend at the same rate? Can you roll onto a term facility with the same lender?
  4. Relationship value. If you're a repeat borrower, a slightly more expensive but relationship-oriented lender often beats the cheapest headline rate.

When a broker earns their fee

Brokers add most value on dev exit when (a) you have a non-standard case (adverse, short term, complex title), (b) you want to compare across all three lender categories quickly, or (c) you don't have existing relationships and need warm introductions.

For a straightforward deal with a strong sponsor and good comparables, going direct to a known lender can be just as effective — and you save the broker fee (typically 0.5–1% of facility).

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