✅ What separates a good development finance broker from a great one?
The viability model. A great development finance broker acts less like an introducer and more like an architect of your funding — interrogating acquisition and build costs, professional fees (S106, CIL, warranties), sales costs and a realistic 10–15% contingency before any lender sees the deal, because weak numbers surface at underwriting, after time and fees are spent. Then the checks: scheme-type experience (ground-up, conversion, refurb are different risks), genuine high-street and specialist panel access, FCA regulation plus NACFB/FIBA accreditation, full fee transparency, and honest timelines — from seven working days for simple facilities. Money Pilot builds the model first, across 200+ lenders at zero broker fees — FCA regulated (FRN: 968705).
Development finance is where choosing the wrong broker doesn’t just cost you a slightly worse rate, it can genuinely sink a project. A broker who doesn’t properly stress-test your numbers before submitting to a lender can waste weeks, or leave you holding a facility that doesn’t actually cover the full cost of what you’re building. Let’s go through what actually separates a good development finance broker from an average one.
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What does a development finance broker actually do?
They act as the intermediary between you and lenders, high street banks and specialist funds alike, sourcing the right facility for your specific scheme and negotiating terms on your behalf. But the best ones do considerably more than introduce you to a lender, they build a genuine financial model of your project first, and structure the funding request around what the numbers actually show, not just what you’re hoping to hear.
Why does a proper viability model matter so much?
Because lenders won’t just take your headline figures, land cost, build cost, expected sale price, at face value. A good broker builds a detailed model covering:
- Acquisition and build costs
- Professional fees, architects, engineers, planning obligations like S106 or CIL, building regulations, warranties
- Sales and marketing costs once the scheme completes
- A realistic contingency, typically 10-15% of build cost, for the inevitable surprises
If your broker isn’t asking about all of these before approaching lenders, they’re not doing the job properly, and you’ll likely find out the hard way, at underwriting stage, once time has already been lost.
My top tip: ask a prospective broker to walk you through how they’d build the financial model for your specific scheme before you commit to working with them. Their answer tells you almost everything about whether they genuinely understand development finance or are simply forwarding applications to lenders and hoping for the best.
High street bank or specialist lender, and does a broker even help if I already bank with one?
Worth being honest about this. High street banks generally offer the most competitive rates but apply the strictest criteria, well suited to experienced developers with strong, straightforward schemes. Specialist lenders are typically more flexible, comfortable with first-time developers, complex schemes, or tighter timelines, but usually price a bit higher to reflect that.
If you already have a strong relationship with a bank that’s funded your previous schemes successfully, going direct can sometimes make sense, that relationship has real value. Where a broker earns their keep is comparing across the wider market when you don’t have that existing relationship, or when your current scheme doesn’t fit neatly within your bank’s usual appetite.
What should you check before choosing a development finance broker?
Do they have genuine experience with your type of scheme?
Ground-up builds, conversions, and heavy refurbishments each carry different risk profiles, and a broker experienced in one isn’t automatically well placed for another. Ask for specific examples of similar projects they’ve placed, not just a general reassurance.
How wide is their lender panel, genuinely?
A broker should work with both high street and specialist lenders, giving you access to the full spread of rates and appetite. A narrow panel of just a handful of familiar names limits your options considerably. Money Pilot works across a panel of more than 200 lenders spanning development finance and related property lending.
Are they FCA regulated, and NACFB or FIBA accredited?
Check their Firm Reference Number (FRN) on the FCA’s Financial Services Register at register.fca.org.uk. Money Pilot’s FRN is 968705. Accreditation with bodies like the NACFB or FIBA is a further useful signal of professional standards.
Are they upfront about the full fee structure?
Development finance costs typically stack up across several layers, an arrangement fee (often around 1-2% of the loan), lender fees, valuation and legal costs, and sometimes an exit fee. Some brokers also charge their own fee directly, rather than relying purely on lender commission, and it’s worth understanding that this isn’t automatically a bad sign, a broker being paid regardless of which lender you go with has no incentive to steer you towards whichever lender pays them the most. Ask directly how your specific broker is remunerated, and get the full breakdown in writing before proceeding.
Can they help if your credit history isn’t perfect, or you’re a first-time developer?
A broker with genuine specialist lender relationships can often find a route through adverse credit or limited experience that a narrower panel simply couldn’t. Ask directly about their track record with cases like yours.
How quickly can development finance actually be arranged?
Timelines vary considerably by scheme complexity, but straightforward short-term facilities can sometimes be arranged in as little as seven working days, while larger, more complex schemes typically take several weeks from application to first drawdown. A broker who gives you a specific, honest estimate for your project, rather than a vague reassurance, is worth more than one who simply says “quickly.”
What questions should you ask before committing?
1. Can you walk me through how you’d model my scheme’s viability?
2. How many development finance lenders do you genuinely have active relationships with?
3. What’s your experience with schemes like mine specifically?
4. What’s the full fee structure, yours and the lender’s, in writing?
5. What’s a realistic timeline for a project at my stage?
How do I check if a business finance broker is a member of the NACFB?
Ask for their Reference Number and search it directly on their Register at nacfb.org
The bottom line
A genuinely good development finance broker acts less like an introducer and more like an architect of your funding, interrogating your costs, your contingency, your GDV assumptions, before ever approaching a lender. Check genuine scheme-type experience, real panel breadth, FCA regulation, and full fee transparency before choosing anyone. Money Pilot, FCA regulated under FRN 968705 with an overall panel of over 200 lenders spanning high street and specialist development finance providers, is built around exactly this level of scrutiny. The right broker doesn’t just find you a lender, they make sure your numbers can actually withstand one looking closely at them.
