Non-Utilisation Fee Ratio in UK property development finance is the percentage fee lenders charge on the undrawn portion of an agreed loan facility. This fee compensates lenders for reserving funds that developers have not yet drawn down, reflecting the cost of having committed but unused finance available. It typically applies to revolving or flexible development loans and is calculated as a proportion of the unused facility. Developers must factor this cost into their project financing, as it impacts the effective cost of capital and cash flow management throughout the development process.
This sits beneath Financing Fees & Upfront Costs, introducing a more specific variant of the measure without changing its core interpretation. It is commonly considered alongside Arrangement Fee % of Facility, as both are closely related measures used to assess similar aspects of performance or risk.
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