From the Glossy Page Blog

in 1 way it is simply understood because the only kind of loan the typical person knows about is a mortgage over twenty-five or thirty years. But a mortgage is the fully wrong sort of loan to take out when you’re a developer. That is not what developers’ need or only the terribly made would be ready to develop anything. Developers don’t pay the bank of development finance every month out of their money flow ( pocket ). The amount of interest is figured out on a once per month basis on the amount a developer draws down from the lender. That interest is then added to the pay back amount required at the end of the development. Please quote Development Finance lvb