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Top 10 £1 Million Development Finance Lenders UK 2026
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Top 10 £1 Million Development Finance Lenders Compared
| Rank | Lender | Best for | Published loan range | Loan rate |
|---|---|---|---|---|
| 1 | One Stop Business Finance | Mid-sized residential developers needing staged drawdowns up to £3m | £100,000 to £3,000,000 | interest 1.6% to 3% monthly |
| 2 | Inhale Capital | Experienced developers seeking competitive monthly rates on £1m-plus projects | £0 to £2,000,000 | interest 1.05% to 1.3% monthly |
| 3 | Brightstar | Developers preferring annual-rate pricing with no upper loan limit | From £50,000 | interest 5% to 12% annually |
| 4 | Momenta Finance | Property investors using bridging for land acquisition or light refurbishment | £50,000 to £2,000,000 | interest 8% to 24% annually |
| 5 | Nucleus Commercial Finance | Smaller property projects funded through short-term bridging finance | £3,000 to £2,000,000 | mixed 1.15% to 17.5% monthly |
| 6 | mcl finance | Included for comparison; smaller bridging loans capped at £100k | £5,000 to £100,000 | interest 2.75% to 4% monthly |
| 7 | OakNorth | Larger-scale developers needing bank-led development finance from £1m | From £1,000,000 | interest 5.5% to 12.5% annually |
| 8 | United Trust Bank | High-value projects using bridging for development with a large upper limit | £100,000 to £35,000,000 | interest 5% to 12.5% annually |
| 9 | Barclays | Established developers seeking high-street bank development finance | £1,000 to £25,000,000 | interest 8.5% to 14.9% annually |
| 10 | MT Finance | Experienced developers with strong exit strategies and low LTVs | £50,000 to £10,000,000 | interest 0.89% to 1.05% monthly |
Development finance is a short-term funding facility that releases capital in stages as a property project progresses, covering land acquisition and build costs. For property developers and investors, this structure aligns funding drawdowns with each construction phase, helping manage cashflow and reducing interest on undrawn funds. At the £1 million level, development finance typically supports small to mid-sized residential or mixed-use schemes, from ground-up builds to heavy refurbishments.
Comparing development finance lenders goes beyond the headline rate. Loan-to-cost ratios and GDV calculations determine how much equity you must commit upfront. The interest structure — whether rolled up, serviced, or retained — shapes cashflow during the build. Facility terms must align with your project timeline and exit strategy, including any extension options for delays. Some lenders specialise by project type, so a lender suited to ground-up residential may not fit a commercial conversion.
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: For a £1 million ground-up or heavy refurbishment project, One Stop Business Finance lends up to £3 million against development schemes, with funds released in staged drawdowns so you are not paying interest on money you have not yet used. The trade-off is a five-day turnaround, which is measured rather than instant.
Best next step: Check development finance terms for staged drawdowns.
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Staged drawdowns reduce interest costs
- Lends up to £3 million for development
- Purpose-built development finance product
Need to know
- Five-day minimum turnaround time
- Staged release requires monitoring
- Secured lending with valuation needed
Expert take
A specialist development funder that structures facilities around the build programme rather than a fixed term. For a £1 million project, their staged-release model helps keep interest costs down during the construction phase.
Source:https://www.osbf.co.uk/
Inhale Capital
Published loan range£0 to £2,000,000
Rate typeinterest 1.05% to 1.3% monthly
Overview: When a site needs securing before a competitor acts, Inhale Capital can fund within 24 hours on property-backed deals up to £2 million. That speed makes it a realistic option for developers chasing a £1 million acquisition. The trade-off is monthly interest from 1.05%, so a clear exit plan is essential.
Best next step: Explore 24-hour funding for time-sensitive site acquisitions.
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Funding within 24 hours
- Up to £2 million available
- Monthly rates from 1.05%
Need to know
- Short-term bridging not term lending
- Clear exit strategy required
- Property security is mandatory
Expert take
A fast-moving short-term lender built for time-sensitive property deals. For a £1 million site purchase or bridge-to-development scenario, the 24-hour turnaround gives developers an edge in competitive situations.
Brightstar
Published loan rangeFrom £50,000
Rate typeinterest 5% to 12% annually
Overview: A 24-hour funding window combined with annual-rate pricing gives Brightstar a dual appeal for development borrowers. Rates from 5% annually keep the headline cost competitive against bank loans, while the speed matches bridging timelines. Secured property lending starts from £50,000.
Best next step: Compare annual-rate bridging costs against development loan options.
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Annual rates from 5%
- Funding within 24 hours
- Loans from £50,000 upwards
Need to know
- Annual pricing needs early-exit caution
- Bridging not staged development finance
- Secured against property only
Expert take
A transparent-rate bridging lender that prices annually rather than monthly, which simplifies cost comparison for developers. Fits a £1 million development scenario where the borrower wants to benchmark pricing against mainstream bank terms.
Momenta Finance
Published loan range£50,000 to £2,000,000
Rate typeinterest 8% to 24% annually
Overview: Developers with an established trading history and property security to pledge may find Momenta Finance a workable route to £1 million, with a loan range stretching to £2 million on secured terms. Funding lands within 48 hours. The annual rate band of 8% to 24% reflects a risk-based pricing model, so strong applications sit at the lower end.
Best next step: Check secured loan terms for established development businesses.
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Loans up to £2 million
- Funding within 48 hours
- Secured lending for established SMEs
Need to know
- Trading history requirements apply
- Rates from 8% to 24% annually
- Property or asset security needed
Expert take
A secured lender that favours established SMEs with tangible property assets. For a £1 million development loan, trading history and security quality will heavily influence which end of the 8% to 24% rate band applies.
Nucleus Commercial Finance
Published loan range£3,000 to £2,000,000
Rate typemixed 1.15% to 17.5% monthly
Overview: Pricing that flexes with deal quality rather than a rigid rate card sets Nucleus Commercial Finance apart. The mixed-rate structure starts at 1.15% monthly, with secured loans reaching £2 million. For a £1 million development, stronger applications can secure leaner terms. Funding completes in 24 hours.
Best next step: See if mixed-rate pricing favours your development deal.
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Mixed-rate structure rewards strong deals
- Funding within 24 hours
- Loans from £3,000 to £2 million
Need to know
- Monthly rates can escalate on risk
- Secured lending with affordability checks
- Short-term bridging not development finance
Expert take
A secured bridging lender with a mixed-rate model that adjusts to deal risk. For a £1 million development project, the rate flexibility can work in the borrower's favour if the deal fundamentals are strong.
mcl finance
Published loan range£5,000 to £100,000
Rate typeinterest 2.75% to 4% monthly
Overview: Short-term cash-flow gaps during a £1 million development — bridging a deposit, covering professional fees, or unlocking chain delays — can be tackled with mcl finance, which releases up to £100,000 within four hours. Rates run from 2.75% monthly. This is a tactical top-up lender, not a full development finance solution.
Best next step: Check bridging terms for smaller development cash-flow needs.
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Funding within four hours
- Covers short-term cash gaps
- Secured bridging from £5,000
Need to know
- Maximum loan is £100,000
- Monthly rates from 2.75%
- Not a full development solution
Expert take
A rapid-response bridging lender whose four-hour turnaround is among the fastest available. Best viewed as a supplementary option for a £1 million development, covering smaller interim cash needs rather than the full facility.
Source:https://www.mclfinance.com/
OakNorth
Published loan rangeFrom £1,000,000
Rate typeinterest 5.5% to 12.5% annually
Overview: OakNorth is one of the few banks that specifically designs its lending around property development, with a minimum facility of £1 million and annual rates from 5.5%. Drawdowns are staged against the build schedule. The two-week turnaround is slower than specialist short-term lenders, but the annual pricing structure rewards borrowers who can plan ahead.
Best next step: Review staged development finance terms from £1 million.
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Purpose-built development finance
- Annual rates from 5.5%
- Staged drawdowns against build schedule
Need to know
- Two-week minimum turnaround
- Bank underwriting is thorough
- Minimum facility of £1 million
Expert take
A bank lender built around development finance rather than treating it as a side product. For a £1 million scheme, OakNorth's staged drawdown model and annual rates from 5.5% make it a credible alternative to short-term bridging.
United Trust Bank
Published loan range£100,000 to £35,000,000
Rate typeinterest 5% to 12.5% annually
Overview: With a lending ceiling of £35 million, United Trust Bank handles development projects of nearly any scale on secured bridging terms, with annual rates beginning at 5% and funding typically arriving within 48 hours. The bank's size means underwriting tends to be thorough, favouring well-prepared applications.
Best next step: Check bank bridging terms for large-scale development projects.
More info
Company stats
Loan range
Rates and debtor rules
Benefits
- Lending up to £35 million
- Annual rates from 5%
- Funding within 48 hours
Need to know
- Thorough bank underwriting process
- Bridging not staged development finance
- Property security is mandatory
Expert take
A well-capitalised bank that bridges the gap between high-street lenders and specialist development funders. For a £1 million project, borrowers gain institutional-grade funding with annual pricing and a lending ceiling that accommodates far larger schemes.
Source:https://www.utbank.co.uk/
Barclays
Published loan range£1,000 to £25,000,000
Rate typeinterest 8.5% to 14.9% annually
Overview: Barclays brings mainstream banking stability to development lending, with facilities ranging from £1,000 to £25 million and annual rates from 8.5%. Developers can house multiple facilities under one relationship, which simplifies banking for those running several projects. Expect fuller underwriting than with specialist funders.
Best next step: Explore mainstream bank lending for development projects.
More info
Company stats
Loan range
Rates and debtor rules
Benefits
- Mainstream bank stability
- Loans up to £25 million
- Multiple facilities under one roof
Need to know
- Full bank underwriting required
- Annual rates from 8.5%
- Longer process than specialist lenders
Expert take
A high-street bank with the balance sheet to support complex development lending. For a £1 million project, relationship-based banking means development finance can sit alongside other facilities under a single banking relationship.
MT Finance
Published loan range£50,000 to £10,000,000
Rate typeinterest 0.89% to 1.05% monthly
Overview: Monthly rates below 1% are uncommon in short-term property lending, and MT Finance starts at 0.89%. For a £1 million development bridge, the lower carry cost during the build phase can save thousands compared to lenders pricing above 1.2% monthly. Loans range from £50,000 to £10 million.
Best next step: Compare low-rate bridging costs for your development bridge.
More info
Company stats
Loan range
Rates and debtor rules
Benefits
- Monthly rates from 0.89%
- Funding within 24 hours
- Loans up to £10 million
Need to know
- Short-term bridging only
- Exit strategy must be clear
- Property-backed security required
Expert take
A competitive-rate bridging lender whose monthly pricing starts below 1%, rare in the short-term market. For a £1 million development, the low carry cost during the build phase is MT Finance's standout advantage.
Source:https://www.mt-finance.com/
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How loan-to-cost and LTV ratios work for £1 million development finance
Lenders funding £1 million property development projects assess both loan-to-cost (LTC) and loan-to-value (LTV) ratios. Most specialist development finance lenders on this panel cap lending at 75% of gross development value, including One Stop Business Finance, Inhale Capital, and OakNorth. Brightstar is a notable exception, offering up to 100% LTV in some cases, which can reduce the cash deposit a developer needs upfront.
At the £1 million level, lenders typically expect the developer to have already secured the site or covered land costs from their own resources. Development finance is drawn in stage payments linked to build progress, not released as a single lump sum. This structure protects the lender and keeps interest costs tied to drawn funds.
A developer approaching £1 million development finance should prepare a detailed build schedule, professional QS cost estimates, and a realistic GDV backed by local market comparables. These documents directly influence the LTC and LTV ratios a lender will agree to.
Exit strategies that £1 million development finance lenders expect
Every £1 million development finance lender on this panel requires a clearly defined exit strategy before approval. Development finance is short term by design. One Stop Business Finance and Inhale Capital both offer terms from 3 to 18 months, meaning the loan must be fully repaid within that window.
The most common exit route is sale of the completed development. Lenders stress-test the projected sale price against local comparables and current market conditions. A second widely accepted exit is refinancing onto a commercial mortgage or buy-to-let facility, particularly for developers planning to hold finished units for rental income.
MT Finance provides terms from 1 month to 2 years, offering flexibility for fast-turnaround projects. Developers should present at least two viable exit scenarios when applying for £1 million development finance. A single exit route rarely satisfies a lender's credit committee at this level, especially where market conditions could shift before completion.
Comparing rates and structure across £1 million development finance lenders
Development finance rates at the £1 million level vary significantly between lenders. Monthly interest products from specialist funders sit alongside annual-rate facilities from banks, and comparing them accurately matters for project viability.
| Lender | Rate Range | Max LTV |
|---|---|---|
| Inhale Capital | 1.05% to 1.3% monthly | 75% |
| One Stop Business Finance | 1.6% to 3% monthly | 75% |
| OakNorth | 5.5% to 12.5% annually | 75% |
| Brightstar | 5% to 12% annually | 100% |
Monthly rates can appear lower at first glance but compound more quickly than annual equivalents. A developer borrowing £1 million should model total interest cost across the full expected term, not only the headline rate. Lenders also charge arrangement fees, exit fees, and monitoring surveyor costs that affect the net advance.
Eligibility and security requirements for £1 million property development finance
Most development finance lenders at the £1 million level require a personal guarantee from directors. One Stop Business Finance, Inhale Capital, Brightstar, and OakNorth all mandate a PG, meaning directors carry personal liability if the project fails.
Homeowner status is less of a barrier in development finance than in other property lending. None of the specialist development lenders on this list require the borrower to own a home. One Stop Business Finance accepts startups with zero trading history and no minimum turnover, making it accessible for newly formed SPVs used to hold a single development project.
For £1 million development finance, lenders typically expect the borrowing entity to be a limited company or LLP, often a special purpose vehicle. Director credit history, track record of completed projects, and the strength of the professional team (architect, QS, contractor) are all scrutinised. Lenders want evidence the developer has delivered similar-scale projects before.
