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The honest version of the pitch

When a broker earns their fee.
(And when they don’t.)

Every broker website says the same thing: wider access, better terms, expert advice. Most of that’s true — some of the time. Here’s the honest argument. When going direct is fine, when a broker pays for themselves, and how we’re paid when it comes to it.

Start a deal

First, the honest bit

When you probably
don’t need a broker.

We lose nothing by saying this out loud. If the deal fits one of these patterns, go direct and save the fee.

  • You have an existing lender you trust

    A repeat relationship with a lender who knows your track record, prices competitively, and moves quickly is genuinely hard to beat. If you've already got that, keep it — don't let a broker replace it out of self-interest.

  • The deal is plain-vanilla

    Single-plot residential, modest leverage, comfortable LTV, planning fully in place, experienced sponsor, no unusual security. High-street banks underwrite this profile every day. A broker adds little here.

  • You’re not actually time-pressured

    If you have six months before drawdown, you can run a direct-market beauty parade yourself. The comparison-shopping has cost but it has value too — you'll learn the market. Brokers compress that into days; if you don't need that compression, save the fee.

  • You’re looking for a mortgage, not a facility

    Owner-occupier residential mortgages are regulated consumer products with tight pricing and transparent comparison tools. Use a regulated mortgage adviser, not us.

Now the other side

When a broker pays for themselves
many times over.

Flip the pattern. Here's when the fee is a rounding error on the value delivered — and where most of our repeat business comes from.

  • 01

    You need more than one lender in the stack

    Mezzanine behind senior, preferred equity on top, a separate bridging line to keep options open. Co-ordinating two or three lenders to complete on the same day is what breaks DIY applications. We document facilities in parallel and manage intercreditor.

  • 02

    Your scheme is outside the plain-vanilla box

    PD conversion, pre-planning acquisition, unusual security, first-time developer stretching into a bigger scheme, complex covenant package. Specialist lenders exist for all of these, but they're invisible to Google and don't run call centres. The panel is the product.

  • 03

    Leverage matters more than margin

    If an extra 10% LTGDV lets you take on a second scheme, the broker fee is a rounding error. Stretch senior, senior-plus-mezz, and JV equity regularly add leverage that direct-to-one-lender simply can't. That's where the real money moves.

  • 04

    Time-to-completion is the deal

    Auction purchases, chain breaks, retender situations, funding a deposit on a second site. Brokers with live relationships collapse weeks of enquiry/reply cycles into a single call. If you're counting days, that compression is the entire point.

What we actually do

Six tasks a broker works on
that a developer would skip.

Not vibes. The concrete workflow from enquiry to drawdown. This is what the fee pays for.

  1. 01

    Pre-screen against 100+ lenders before writing a line

    We know which lenders have appetite this week, which are cold on the sector, and which credit committees sit on Thursdays. Saves you applying to the three lenders who will politely decline.

  2. 02

    Package the deal the way credit committees want to read it

    A well-drafted information memorandum cuts weeks off the decision. Badly packaged deals get relegated to the bottom of the credit pile; well-packaged ones get a decision in the next sitting.

  3. 03

    Negotiate the commercial terms, not just the rate

    Arrangement fee, exit fee, monitoring surveyor frequency, drawdown tranche structure, non-utilisation fee, cost overrun facility, covenant tests. The total cost of a facility is at least ten line items; the headline rate is one of them.

  4. 04

    Co-ordinate valuers, solicitors and monitoring surveyors

    Deals die in the handoffs. We sit between the five or six professional parties and make sure nothing falls through a gap. One point of contact, weekly status on every file, no dropped stitches.

  5. 05

    Run two or three tracks in parallel

    We rarely back a single lender all the way to offer. Running parallel negotiations until the commercial terms are tight keeps lenders honest and gives you a fallback if the preferred route stumbles on valuation or legal.

  6. 06

    Stay on the file through drawdown

    The process doesn't stop at the term sheet. We see every deal through valuation, legal, first drawdown and subsequent stage releases. Same broker from day one to practical completion.

How we’re paid

Transparent fee, paid only
on completion.

No retainers, no success-plus-retainer. If the deal doesn’t complete, we don’t get paid — which means our interests are aligned with yours from the first call.

Arrangement fee

1 – 2%

Of the gross facility, typical range. Varies by complexity and deal size.

Paid when

On drawdown

Deducted from the first drawdown. No money out of the developer’s pocket until the facility is live.

Retainers

None

No upfront fee, no success-plus-retainer. If the deal doesn’t complete, neither do we.

 

A typical £3–5M development facility arranged through us costs the developer £30k–£100k in broker fees. That sounds like a lot until you weigh it against what we routinely save on the rate (often 50–150bps), the arrangement fee negotiated with the lender, or the incremental leverage we can unlock — any one of which can be worth multiples of our fee on a scheme that size.

We show you the all-in cost comparison before you commit. If the numbers don’t stack up, we’ll tell you.

Alternative routes

How we compare to the other options.

We’re not the only way to fund a scheme. Here’s an honest view of the main alternatives and when each one fits.

Route 1

Specialist Broker (Construction Capital)

A dedicated development finance broker with deep lender relationships and capital stack expertise.

Timeline
Indicative terms in 24 hours, completion in 2-4 weeks
Typical cost
1-2% arrangement fee

In its favour

  • Access to 100+ specialist lenders across the whole market
  • Expert deal structuring to maximise leverage and minimise cost
  • Significant time saving - one application, multiple lenders
  • Competitive rates through panel leverage and lender competition

Against

  • Broker fee (typically 1-2% arrangement fee, usually deducted from the facility)

Best for:Developers seeking optimal terms across the whole market, complex capital stacks, or projects requiring specialist lender knowledge

Route 2

Direct to Lender

Approaching a development finance lender directly without broker intermediation.

Timeline
2-6 weeks depending on lender
Typical cost
No broker fee, but potentially higher lender rates

In its favour

  • No broker fee on the transaction
  • Direct relationship with your lender

Against

  • Limited to one lender's products and appetite
  • No market comparison - you never know if you're getting the best deal
  • DIY application process with no expert guidance
  • Often worse rates without broker leverage and volume relationships

Best for:Simple deals where you have an existing lender relationship and are confident in their terms

Route 3

High Street Bank

Traditional high street banks offering property development lending alongside their retail banking services.

Timeline
8-12 weeks to completion
Typical cost
Lower headline rate, but inflexible terms

In its favour

  • Familiar brand and existing banking relationship
  • Potentially lower rates for simple, low-risk deals

Against

  • Slow decision-making (8-12 weeks is common)
  • Conservative lending criteria - low LTV, vanilla projects only
  • Limited development finance expertise within branch networks
  • No specialist understanding of complex capital stacks

Best for:Experienced developers with strong balance sheets and straightforward residential projects

Route 4

Online Platform

Technology-driven platforms offering development finance comparison or direct lending online.

Timeline
Instant indicative, but 4-8 weeks to actual completion
Typical cost
Varies - some charge fees, others are lead-gen funded

In its favour

  • Quick indicative terms through automated processes
  • Technology-driven, user-friendly interface

Against

  • Limited real lender relationships - often just lead generation
  • Less structuring expertise for complex deals
  • Indicative terms may not reflect final offers
  • Limited human expertise when deals get complicated

Best for:Developers wanting a quick initial sense of market rates before engaging a specialist

Route 5

Mortgage Broker

Residential or buy-to-let mortgage brokers who occasionally handle development finance enquiries.

Timeline
Varies widely - often delayed by learning curve
Typical cost
Standard broker fee, but risk of sub-optimal deal structure

In its favour

  • Good for buy-to-let and standard residential mortgages
  • May already have a relationship with you

Against

  • Rarely understand development finance structures
  • Limited access to specialist development lenders
  • May mis-advise on capital stack structuring and mezzanine options
  • Not equipped for planning-contingent or phased drawdown facilities

Best for:Buy-to-let purchases or simple residential refinancing - not development finance

Still reading

If you’re in the second camp,
let’s talk.

Send us the outline of your scheme. We’ll come back with indicative pricing from the right lenders inside a working day — and we’ll tell you upfront if going direct would serve you better.

Start a dealOr call +44 20 3816 3693