Why Do Some Brokers Refuse to Publish Loan Size Ranges?

When searching for the right development finance broker, one detail that often puzzles developers and investors is the absence of clear loan size ranges on some brokers’ websites. Instead of straightforwardly stating their deal size capacity, certain brokers prefer to keep their loan bands under wraps. This can be frustrating for those comparing options, especially when trying to assess which broker offers the best match for their project.

In this post, we unpack why some brokers choose not to publish their loan size ranges openly. We’ll cover essential concepts like loan-to-value (LTV), loan-to-cost (LTC), gross development value (GDV), and staged drawdowns in development finance. We’ll also look at how broker transparency affects your ability to secure the best finance deal—and which brokers lead the way in clarity and lender access.

What Are Loan Size Ranges and Why Do They Matter?

Loan size ranges refer to the typical minimum and maximum amount a broker or lender can facilitate in a financing deal. For example, a broker might say they can provide bridging loans between £100,000 and £2 million.

These ranges are crucial for developers to know upfront because they help determine if a particular broker can handle their project’s financial requirements:

• Deal fit: Small projects usually demand smaller loans, while big developments need larger sums.
• Speed and feasibility: Larger deals often take more due diligence and underwriting time, impacting speed.
• Access to appropriate lenders: Not all lenders deal with every loan size or project type.

Transparency on loan ranges enables borrowers to shortlist brokers who fit their deal size and get realistic, timely offers.

Why Do Some Brokers Keep Loan Size Ranges Confidential?

I'll be honest with you: despite the benefits of transparency, some brokers prefer not to publish typical loan bands. The reasons behind this vary and usually stem from a mix of business strategy and lending market realities.

1. Flexibility in Bespoke Development Finance

Many brokers specialise in bespoke development finance—tailored loans crafted for unique deals with complex terms. For instance, firms like KIS Finance and The Loans Engine often structure funding packages flexibly, dependent on project specifics, GDV, site progress, and borrower experience.

Clearly stating fixed loan ranges could limit a broker’s ability to negotiate customised options or create a perception they can only cover certain sizes.

2. Diverse Lender Panels and Variable Deal Criteria

Brokers watford finance broker working with multiple lenders maintain access to a wide array of products from banks, specialist lenders, and private funds. Each lender has its own appetite, risk thresholds, and loan amount limits.

The Loans Engine, for example, touts multi-lender access that lets it find deals that fit key parameters like LTV, GDV, and borrower criteria—regardless of whether the project is £250k or £10 million.

Publishing strict loan size bands may confuse clients when a lender’s appetite fluctuates, or a deal falls outside typical ranges but can still proceed because of exceptional circumstances.

3. Competitive Reasons and Market Positioning

Some brokers conceal ranges to avoid pigeonholing themselves into being suitable only for smaller or larger deals. They may also want to minimise direct comparison with competitors or avoid attracting clients they cannot help effectively.

4. Regulatory and Risk Considerations

Disclosing loan size ranges without nuanced disclaimers could mislead potential borrowers about the broker’s actual capabilities or the risks involved. With the complexity of development finance—incorporating staged drawdowns based on build progress—simple ranges might oversimplify the offering.

Key Metrics in Development Finance: GDV, LTV, and Loan-to-Cost

Understanding why brokers avoid publishing loan sizes warrants a brief explanation of critical metrics affecting development finance deal structures.

Gross Development Value (GDV)

GDV represents the forecast market value of the completed development upon sale or lease. Essentially, it’s what the finished scheme will be worth on the open market.

Lenders and brokers use GDV to gauge feasibility and calculate the maximum loan amount, usually expressed as a percentage called the Loan-to-GDV (LTV).

Loan-to-Value (LTV)

LTV is the loan amount divided by the appraised value of the project or property. For development finance, LTV is often calculated against the GDV, not the initial purchase price.

For example, if a project’s GDV is £5 million, and the loan is £3 million, foreign national development finance the LTV is 60%. Most bridging or development lenders cap LTVs around 65-70%, depending on risk.

Loan-to-Cost (LTC)

LTC is the percentage of the total development cost that the lender is prepared to fund. Costs include land purchase, construction, fees, and finance costs.

For example, if total costs are £4 million, and the loan is £2.8 million, LTC is 70%. LTC tends to be lower than LTV because lenders want to ensure developers have skin in the game.

Development Finance Mechanics: Staged Drawdowns and Build Progress

Unlike residential mortgages, development finance loans usually disburse funds in stages aligned with construction progress. Borrowers can draw down portions of the loan as works complete predefined milestones.

This system minimises lender risk and lets developers manage cash flow effectively throughout the build.

Staged drawdowns require regular site inspections and valuation assessments to confirm progress before releasing further funds.

Brokers often play an active role in managing this process, coordinating with lenders and developers to schedule draws and inspections.

Selecting a Broker: What Matters Beyond Loan Size Ranges

While knowing the loan size range helps shortlist brokers, it’s just one piece of the puzzle. Other factors include:

• Speed of service: Development finance often requires quick decisions to secure land or start construction.
• Lender panel breadth: A broker with multiple lender relationships can offer tailored options fitting your project specifics.
• Broker transparency: Firms that publish fees, loan mechanics, and typical deal sizes inspire more confidence.
• Reputation and reviews: Platforms like Reviews.io provide independent insights into brokers’ reliability and client satisfaction.

For example, Scottish Bridging Loans are specialists focusing on Scotland, with transparent lending criteria and fast decision-making—ideal for regional developers who require clarity on loan feasibility upfront.

A Quick Comparison Table: Loan Size Transparency and Features of Sample Brokers

Broker Loan Size Range Published? Specialisation Lender Access Transparency & Reviews KIS Finance No, prefers tailored solutions Bespoke development & bridging loans Wide multi-lender panel Good presence on Reviews.io, clear fees on request The Loans Engine No fixed ranges published publicly Flexible bespoke development finance Multiple specialist lenders Transparent process described, strong user feedback Scottish Bridging Loans Yes, focused regional loan bands available Bridging loans specific to Scotland Focused panel for Scottish deals Positive reviews on Reviews.io, clear loan parameters

Conclusion: What Should Borrowers Do?

Brokers’ reluctance to publish fixed loan size ranges is often driven by the bespoke, complex nature of development finance deals and the diverse lender panels they manage. While it’s natural to want straightforward numbers upfront, these omissions do not always indicate opacity; rather, they reflect the flexible, deal-specific approach needed in this market.

To ensure a great outcome, borrowers should:

1. Choose brokers known for transparency in fees and lending criteria.
2. Leverage third-party review platforms like Reviews.io to vet broker reputation.
3. Understand key finance terms (GDV, LTV, LTC) to ask informed questions.
4. Engage brokers who clearly explain staged drawdown processes and their lender panel access.

For those with straightforward needs and regional focus, brokers like Scottish Bridging Loans provide clear, published loan bands and fast turnaround. For complex bespoke deals, KIS Finance and The Loans Engine are trusted specialists, willing to work flexibly within diverse lender parameters.

Who This Is For

This article is for property developers and investors seeking clarity on why some UK bridging and development finance brokers choose to withhold loan size ranges and how to navigate broker selection intelligently.