For many property developers, submitting a development finance application can feel like handing over a large amount of information and then waiting for a decision behind closed doors.

When people think about successful property developers, they often focus on the obvious factors: securing planning permission, arranging development finance, managing construction and selling completed properties.

The UK property market has experienced significant change over the past few years. Rising interest rates, inflation, increasing construction costs and evolving planning policy have all created challenges for developers. At the same time, demand for new homes continues to outstrip supply across much of the country.

One of the most common questions property developers ask when embarking on a new project is, “How long will it take?”

The honest answer is that every development is different. The size of the scheme, planning requirements, site conditions and funding arrangements can all influence the overall programme.

When comparing development finance, it is natural to focus on one number above all others: the interest rate.

After all, borrowing costs have a direct impact on project profitability, so securing the lowest possible rate might seem like the obvious choice. However, experienced property developers often know that the cheapest development finance does not always represent the best value.

For many people, property development is viewed as a series of individual projects. A developer buys a site, secures finance, builds the scheme, sells the completed units and then starts looking for the next opportunity.

Securing development finance is often one of the biggest challenges property developers face. While many developers focus on loan-to-value (LTV) or loan-to-Gross Development Value (LTGDV), another factor can significantly influence how much funding is available: additional property security.

For many property developers, securing development finance can sometimes feel like a mystery. You submit an application, provide your appraisal, answer a series of questions and then wait for a decision. But what actually happens behind the scenes?