In UK property development finance, the Interest Roll-Up Ratio measures the proportion of interest that is not paid as it accrues but instead added (or ‘rolled up’) to the loan principal. This method allows developers to defer interest payments during the construction phase when cash flow may be limited. The accumulated interest increases the overall loan balance, affecting both total borrowing costs and repayment schedules. Understanding this ratio helps property developers and lenders assess the impact of capitalised interest on project viability and financing structure.
This sits beneath Debt Cost Metrics, introducing a more specific variant of the measure without changing its core interpretation. It is commonly considered alongside Cumulative Interest Accrued to Date, as both are closely related measures used to assess similar aspects of performance or risk.
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