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Top 10 Lenders to Secure £100,000 Development Finance in the UK – 2026
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Top 10 lenders for £100,000 development finance
| Rank | Lender | Best for | Published loan range | Loan rate |
|---|---|---|---|---|
| 1 | One Stop Business Finance | Small-scale developers needing £100,000-plus development finance with stage payments | £100,000 to £3,000,000 | interest 1.6% to 3% monthly |
| 2 | Nucleus Commercial Finance | Developers blending bridging and development funding for property projects | £3,000 to £2,000,000 | mixed 1.15% to 17.5% monthly |
| 3 | mcl finance | Small refurbishment projects at the £100,000 ceiling needing fast bridging | £5,000 to £100,000 | interest 2.75% to 4% monthly |
| 4 | Inhale Capital | Cost-conscious small developers seeking low-rate property funding | £0 to £2,000,000 | interest 1.05% to 1.3% monthly |
| 5 | Brightstar | Developers comparing annual-rate funding for projects from £50,000 | From £50,000 | interest 5% to 12% annually |
| 6 | Momenta Finance | More established developers with strong accounts seeking bridging finance | £50,000 to £2,000,000 | interest 8% to 24% annually |
| 7 | Shire Leasing | Small-scale developers needing dedicated property development finance | £5,000 to £750,000 | interest 4% to 11% monthly |
| 8 | Shireassetfinance | Developers seeking development finance for projects under £750,000 | £5,000 to £750,000 | interest 4.5% to 12% monthly |
| 9 | Barclays | Small developers preferring high-street bank funding for property projects | £1,000 to £25,000,000 | interest 8.5% to 14.9% annually |
| 10 | MT Finance | Developers seeking competitive monthly-rate funding from £50,000 | £50,000 to £10,000,000 | interest 0.89% to 1.05% monthly |
Development finance is short-term funding that covers the cost of building, converting, or refurbishing residential or commercial property, with funds released in stages as work progresses. It suits small-scale developers and property investors because the loan is secured against the project’s potential value rather than relying on years of trading accounts. At £100,000, this level of funding works well for single-unit new builds, small conversions, or refurbishment projects with a clear exit plan.
Choosing the right development finance lender goes beyond comparing headline rates. The loan-to-cost ratio a lender offers directly affects your upfront capital commitment. Stage payment schedules determine when funds become available during the build, shaping cash flow and contractor payments. The lender’s familiarity with projects of similar size also matters. A lender experienced with £100,000 residential projects will typically process drawdowns faster than one focused solely on large-scale developments.
Important note:
Funding Agent
Published loan rangeFrom £10,000 to up to £1,000,000
Rate typeInterest from 6.8% annually
Why it is included:It is included because many business owners need to compare several finance routes before choosing where to apply.
Funding Agent can help businesses compare suitable options across a lender panel, especially when eligibility depends on turnover, sector, trading history, credit strength and available documents.
Best use case: When the borrower wants to avoid applying to one lender at a time.
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Why it stands out
- Useful when a business wants to compare lender fit rather than guess which lender to apply to first.
- Can help position the application around the funding purpose, trading profile and available documents.
- Works well as a conversion route for readers who are unsure whether a direct lender will approve a larger unsecured facility.
Need to know
- Funding Agent is a broker, not a lender.
- The lender, not Funding Agent, sets the final rate, term, fees and approval decision.
- The best match may be unsecured, secured, revolving credit, invoice finance or another product depending on the case.
Expert take
Funding Agent is a useful honourable mention for business owners who want to compare lender options before submitting a full application. A larger unsecured loan is not always approved by the first lender a business finds, so understanding lender fit early can reduce wasted time and avoid unnecessary declines.
One Stop Business Finance
Published loan range£100,000 to £3,000,000
Rate typeinterest 1.6% to 3% monthly
Overview: Monthly rates starting at 1.6% keep borrowing costs predictable on smaller development projects. One Stop Business Finance funds property-backed schemes from £100,000, with capital typically released within five working days. Underwriting focuses on project viability and a realistic exit strategy, so paperwork needs to be well prepared.
Best next step: Compare One Stop rates through Funding Agent.
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Monthly rates from 1.6%
- Funding within five working days
- Facilities from £100,000
Need to know
- Strong project viability evidence required
- Exit strategy must be clearly defined
- Personal guarantee may be needed
Expert take
A flexible finance provider that works well with SMEs on property-backed deals. For a £100,000 development project, the rate structure and five-day timeline make it a sensible fit when a credible exit is demonstrated.
Source:https://www.osbf.co.uk/
Nucleus Commercial Finance
Published loan range£3,000 to £2,000,000
Rate typemixed 1.15% to 17.5% monthly
Overview: Funding decisions land within 24 hours, which helps developers acting on time-sensitive opportunities. Nucleus Commercial Finance offers bridging facilities from £3,000, giving small-scale developers room to scale up or start modestly. Rates vary between 1.15% and 17.5% monthly, so cost depends heavily on deal strength and security quality.
Best next step: Explore Nucleus bridging through Funding Agent.
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Decisions within 24 hours
- Facilities start from £3,000
- Suitable for property-backed deals
Need to know
- Rates vary widely by deal strength
- Property security always required
- Valuation and legal costs apply
Expert take
A commercial lender with strong bridging capability for property-backed situations. The rapid decision window suits developers who need to secure a site quickly, and stronger applications attract rates at the lower end of the band.
mcl finance
Published loan range£5,000 to £100,000
Rate typeinterest 2.75% to 4% monthly
Overview: Small developers who need certainty of access rather than the cheapest rate will find mcl finance a pragmatic choice. Funding releases in as little as four hours, with loans capped at £100,000 and monthly rates from 2.75%. The speed premium pays for itself where missing a deadline would cost more than the interest.
Best next step: Check mcl finance speed through Funding Agent.
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Funding possible in four hours
- Loans up to £100,000
- Straightforward property-backed lending
Need to know
- Monthly rates from 2.75% to 4%
- Short-term repayment expected
- Exit plan must be watertight
Expert take
A rapid-response bridging lender built for speed-critical property deals. Small developers facing tight deadlines will find the four-hour funding window valuable, and a well-prepared exit plan keeps the process smooth.
Source:https://www.mclfinance.com/
Inhale Capital
Published loan range£0 to £2,000,000
Rate typeinterest 1.05% to 1.3% monthly
Overview: Facilities reach up to £2,000,000, so developers can start at £100,000 and return for larger funding as their pipeline grows. Inhale Capital funds property-backed projects with monthly rates from 1.05%, and decisions typically land within 24 hours. The low entry rate rewards well-structured deals with strong security.
Best next step: Get Inhale Capital terms via Funding Agent.
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Monthly rates from 1.05%
- Funding up to £2,000,000
- 24-hour decision turnaround
Need to know
- Property security always required
- Valuations and legal costs apply
- Higher fees on riskier deals
Expert take
A property-focused funder with competitive entry rates for well-secured deals. Developers seeking £100,000 on a straightforward project will find the cost structure attractive, and the lender's headroom supports future scale.
Brightstar
Published loan rangeFrom £50,000
Rate typeinterest 5% to 12% annually
Overview: Annual interest rates between 5% and 12% give small developers a clearer picture of yearly borrowing costs compared to monthly-rate structures. Brightstar lends from £50,000 with 24-hour decisions, funding property-backed developments where the project plan and exit route are clearly set out. Underwriting expects a well-documented proposal.
Best next step: Speak to Funding Agent about Brightstar.
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Annual rates from 5%
- Facilities from £50,000
- 24-hour decision window
Need to know
- Annual rate structure applies
- Property security is mandatory
- Well-documented proposal needed
Expert take
A lender that prices on an annual basis, suiting developers who model costs over a full year. The £50,000 minimum sits comfortably below the target, and 24-hour decisions keep momentum on smaller projects.
Momenta Finance
Published loan range£50,000 to £2,000,000
Rate typeinterest 8% to 24% annually
Overview: Property developers working on renovation or conversion projects can access bridging from £50,000 with annual rates starting at 8%. Momenta Finance funds within 48 hours, giving borrowers enough time to prepare documentation without sacrificing momentum. The annual pricing model helps developers forecast costs across the full project timeline.
Best next step: Check Momenta bridging via Funding Agent.
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Annual rates from 8%
- Facilities from £50,000
- 48-hour funding turnaround
Need to know
- Strong trading history expected
- Personal guarantee may apply
- Legal and valuation costs involved
Expert take
A secured lender with a bridging product suited to developers managing mid-sized renovation projects. The annual rate structure and 48-hour timeline strike a balance where speed matters but cost certainty matters more.
Shire Leasing
Published loan range£5,000 to £750,000
Rate typeinterest 4% to 11% monthly
Overview: Monthly rates range from 4% to 11%, placing this lender in the higher-cost tier for development finance. Shire Leasing funds property projects from £5,000 to £750,000 with decisions typically returned within 24 hours. The broad range accommodates smaller initial drawdowns, which can help developers managing phased works in stages.
Best next step: Explore Shire Leasing through Funding Agent.
More info
Company stats
Loan range
Rates and debtor rules
Benefits
- Decisions within 24 hours
- Facilities from £5,000
- Phased drawdowns possible
Need to know
- Monthly rates from 4% to 11%
- Property security is required
- Higher cost than some alternatives
Expert take
A multi-product lender whose development finance arm suits smaller or phased projects. The low minimum facility size gives developers flexibility, and the 24-hour decision window supports projects where timing is tight.
Shireassetfinance
Published loan range£5,000 to £750,000
Rate typeinterest 4.5% to 12% monthly
Overview: Developers racing against a deadline will value the four-hour funding window Shireassetfinance brings to property development deals. Monthly rates range from 4.5% to 12% across facilities of £5,000 to £750,000. Speed defines the proposition, so well-prepared applications carry more weight at the pricing stage.
Best next step: Ask Funding Agent about Shireassetfinance speed.
More info
Company stats
Loan range
Rates and debtor rules
Benefits
- Funding in four hours
- Wide facility range available
- Property development focus
Need to know
- Monthly rates from 4.5% to 12%
- Property security is mandatory
- Rate depends on deal quality
Expert take
A fast-moving development finance provider built for time-critical property deals. Developers needing £100,000 urgently will value the four-hour funding capability, and stronger applications will secure rates at the lower end.
Barclays
Published loan range£1,000 to £25,000,000
Rate typeinterest 8.5% to 14.9% annually
Overview: A high-street bank with development finance capability reaching up to £25,000,000, giving small developers access to institutional-grade funding. Barclays prices at annual rates between 8.5% and 14.9% with 24-hour initial decisions. Bank underwriting is thorough, so trading history and a strong application carry significant weight.
Best next step: Explore Barclays development finance via Funding Agent.
More info
Company stats
Loan range
Rates and debtor rules
Benefits
- Annual rates from 8.5%
- Institutional-grade funding available
- Facilities up to £25,000,000
Need to know
- Thorough bank underwriting required
- Strong trading history expected
- Legal and valuation costs apply
Expert take
A mainstream bank with development finance reach that spans from small projects to major schemes. For a £100,000 development loan, the brand security and annual pricing are appealing, and the institutional backing reassures risk-averse borrowers.
MT Finance
Published loan range£50,000 to £10,000,000
Rate typeinterest 0.89% to 1.05% monthly
Overview: Monthly rates from 0.89% make this one of the most competitively priced bridging options for property-backed development. MT Finance lends from £50,000 to £10,000,000 with 24-hour decisions, giving small developers access to institutional pricing at entry level. The low headline rate rewards clean deals with strong security and a clear exit.
Best next step: Check MT Finance rates through Funding Agent.
More info
Company stats
Loan range
Rates and debtor rules
Benefits
- Monthly rates from 0.89%
- 24-hour decision turnaround
- Lends from £50,000
Need to know
- Property security is mandatory
- Strong exit strategy required
- Lower rates for cleaner deals
Expert take
A competitively priced bridging and development lender with rates that rival institutional funding. At £100,000, developers benefit from near-prime pricing, and the lender's upper limit supports substantial future growth.
Source:https://www.mt-finance.com/
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Loan-to-cost ratios and deposit requirements for £100,000 development finance
The LTC or LTV ratio dictates how much cash you need to put into a project. On this list, One Stop Business Finance and Inhale Capital both publish a maximum LTV of 75%. That means a lender will advance up to £75,000 on a £100,000 project cost, leaving you to fund the remaining £25,000 from your own cash or equity.
MT Finance caps borrowing at 70% LTV, which would mean £70,000 of loan against a £100,000 project. Brightstar takes a different approach, publishing up to 100% LTV in some cases. This can reduce the upfront cash hurdle for smaller developers but may require additional security elsewhere.
When assessing your project, lenders focus on both the purchase price of the land or property and the build costs combined. A clear breakdown of soft and hard costs helps lenders calculate their exposure. Small-scale developers should budget for a deposit of at least 25% to 30% of total project cost unless they have cross-collateral to offer.
Exit strategies small property developers need before applying
Development finance is designed to be short term. One Stop Business Finance and Inhale Capital both offer terms from 3 to 18 months, while MT Finance provides facilities from 1 month to 2 years. Lenders want to see a clear exit route before they approve the facility.
The most common exit for a £100,000 project is selling the completed property. For a single-unit refurbishment or small new build, a sale on the open market typically repays the loan in full. Another widely accepted exit is refinancing onto a buy-to-let mortgage if you plan to retain the property as a rental.
Lenders will also consider a longer-term commercial mortgage or the sale of another asset. Whatever your exit, you need to show evidence it is realistic. This means comparable sold prices for a sale exit, or an agreement in principle for a refinance exit. Expect the lender to stress-test your exit timeline. A 6-month project that slips to 10 months can create cost pressure, so build contingency into your programme.
What small-scale developers need to prepare for a £100,000 development finance application
Lenders on this list vary in what they ask of smaller developers. One Stop Business Finance accepts applications from newly formed entities with no minimum trading history and no turnover threshold. Others set higher bars: Nucleus Commercial Finance requires at least 4 months of trading and £50,000 in turnover, while mcl finance asks for 1 year and £180,000.
Most development lenders require a personal guarantee from directors. This is standard for property development finance and means you are personally liable if the project cannot repay the loan.
Your application should include planning permission, a detailed schedule of works, a cost breakdown from a quantity surveyor or builder, and a realistic gross development value assessment. Lenders will also review your track record, though some specialist providers will back first-time developers who present a strong project. Evidence of contingency funding for cost overruns strengthens your application. Small developers who arrive with a well-organised pack tend to receive faster decisions.
Comparing interest rates and costs across £100,000 property development lenders
Rates for development finance vary widely. On this list, Inhale Capital publishes rates from 1.05% to 1.3% per month, while MT Finance ranges from 0.89% to 1.05% per month. One Stop Business Finance sits between 1.6% and 3% per month. These are monthly rates, so they compound across the loan term.
Some lenders quote annual rates. Brightstar publishes rates from 5% to 12% per year, and Barclays lists rates from 8.5% to 14.9% per year. Shire Leasing and Shireassetfinance both quote in monthly terms, ranging from 4% to 12% per month at the top end.
A rate at 1% per month equates to roughly 12% per year before compounding, so a monthly rate that looks low can still produce a meaningful annual cost. Arrangement fees, exit fees, and monitoring costs also affect the total. Small developers should compare total cost over the projected term rather than focusing on the headline rate alone.
