Development exit finance to cut your monthly cost while you sell
Your scheme is built, or close to it. The units are ready to show. The one thing draining the project now is the development facility, still ticking over at a high rate while the sales period drags and your senior lender waits for its money back. Every month of finance drag eats into the profit you worked for.
Development exit finance refinances that facility onto cheaper short-term money, so the monthly cost drops and the pressure to sell fast eases. Vortex Finance arranges it through a panel of 100+ lenders, with indicative terms in days, not weeks.
We do not lend our own money. We are a whole-of-market broker. We sit on your side of the table, compare the exit lenders, and place your case with the one that gives you the cheapest hold while your units sell.
What development exit finance solves
A senior development facility is priced for the build risk. Once the scaffold comes down and the units are habitable, that risk has largely gone, but you are often still paying the build rate. Development exit finance replaces the senior facility with finance priced for a finished, lower-risk asset.
It does three things at once:
What development exit finance does
- Cuts the monthly cost compared with the development facility you are still paying.
- Releases equity locked in completed units so you can start the next scheme.
- Extends your runway, so you are not forced to discount the last units to hit a development loan deadline.
All rates, terms and figures here are indicative. The lender confirms them on application after the valuation.
When to refinance the development facility
The obvious trigger is a maturing facility. The development loan term is running out, the units have not all sold, and the senior lender wants repaying. Exit finance refinances the balance and buys you a calmer sales window.
There is a second, less obvious trigger. Many developers refinance before the deadline, because development exit finance often prices below the senior development rate. If your facility sits at 9% a year and exit finance can hold the asset for less, refinancing early can cut cost even though the deadline is months away. We model both numbers so you see the saving before you commit.
Exit finance is usually available at or near practical completion. In many cases lenders will look at it before final sign-off, provided the scheme is watertight, weatherproof and close to ready.
How exit finance cuts your monthly cost
The saving comes from the rate. A finished residential scheme is a lower-risk security than a half-built one, and exit lenders price for that.
As an indication, development exit finance is structured as bridging-style, interest-only short-term money. Most cases land in the same monthly band as standard bridging, from around 0.55% to 0.95% per month, against a senior development facility that often runs 6.5% to 9.5% per annum on the drawn balance. Judge it on total cost over your realistic sales period, not the headline rate alone.
Consider a developer holding a £2m balance on a scheme of finished flats. Cutting the monthly finance cost across a six-month sales window can save a meaningful share of the profit margin, money that would otherwise leak away while buyers complete. We cost this cleanly on the call so the net benefit is in front of you before anything proceeds.
Releasing equity for the next scheme
Exit finance is not only about cost. It also frees the equity trapped in completed units.
While units sit unsold under a senior facility, your cash is locked up. You wait for the last sale before you can move. Refinancing onto exit finance at a lower loan balance can release some of that equity now, so you put a deposit down on the next site instead of standing still. For a developer running schemes back to back, that working capital is often worth more than the rate saving alone.
Avoiding forced discounts on the last units
The worst outcome at the end of a scheme is selling good stock cheap to repay an expensive facility before it matures. A development loan deadline can turn into a fire sale.
Exit finance removes that trap. By extending the runway on cheaper money, you sell at the right price on the open market rather than dropping £15,000 or £20,000 a unit to hit a lender’s clock. The finance saving and the price you protect both land in your pocket.
Why a whole-of-market broker matters here
Development exit lenders are a specialist group, and their appetites differ on scheme type, completion status and exit timeline. Your senior development lender may offer to roll you onto its own exit product, but that is one appetite and one price.
We compare 100+ lenders, package the scheme so the underwriter sees a clean, finished asset, and place it with the lender giving the cheapest, fastest hold for your case. There is no fee to get indicative terms, and we share the shortlist before you commit to any application.
Frequently asked questions
My development loan is not due yet. Is exit finance still worth it?
Often, yes. Development exit finance frequently prices below the senior development facility, because a finished scheme is lower risk than a half-built one. Refinancing early can cut your monthly cost even before the deadline. We model the saving against your current rate and likely sales period so you see the net benefit before deciding.
The units have not sold yet. Can I still use exit finance?
Yes. That is the main use case. Exit finance buys time to sell completed units at the right price rather than discounting them to repay the development lender on its deadline. It extends your runway on cheaper money while the sales period runs its natural course.
How much does development exit finance cost?
As an indication, it is structured as short-term, interest-only money, with most cases falling in the bridging band of around 0.55% to 0.95% per month, plus a lender arrangement fee and the usual valuation and legal costs. Our fee model is confirmed upfront before any application, disclosed in writing before you commit. The lender confirms final pricing on application.
When can I arrange it?
Usually at or near practical completion. In many cases lenders will consider it before final sign-off, provided the scheme is structurally complete, weatherproof and close to ready for sale or letting. We tell you honestly whether your scheme is far enough along.
How fast can development exit finance complete?
Indicative terms typically come back within a few working days. Because the security is a finished or near-finished asset with a clear value, these cases tend to move faster than a ground-up development facility. The common holdups are the valuation and missing documents, so getting your file ready early protects the timeline.
On most deals we earn a procuration fee from the lender on completion, and every fee is disclosed in writing before you commit. Our fee model is confirmed upfront before any application.
Get indicative development exit terms
Tell us the scheme, the current facility, the units sold and the balance outstanding. We come back with indicative development exit terms and a clear comparison against what you are paying now. No fee to find out, no commitment until you tell us to submit. Book a call to get started.
Get my indicative terms