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Top 10 Lenders for £200,000 Development Finance in the UK (2026)
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Top 10 Lenders for £200,000 Development Finance Compared
| Rank | Lender | Best for | Published loan range | Loan rate |
|---|---|---|---|---|
| 1 | One Stop Business Finance | Small-scale residential developers needing £200,000 staged funding | £100,000 to £3,000,000 | interest 1.6% to 3% monthly |
| 2 | Inhale Capital | Property developers seeking low monthly rates on £200,000 projects | £0 to £2,000,000 | interest 1.05% to 1.3% monthly |
| 3 | Brightstar | Developers preferring annual interest pricing on smaller property schemes | From £50,000 | interest 5% to 12% annually |
| 4 | Momenta Finance | Developers needing fast bridging for light refurbishment projects | £50,000 to £2,000,000 | interest 8% to 24% annually |
| 5 | Nucleus Commercial Finance | Smaller developers and sole traders requiring flexible short-term funding | £3,000 to £2,000,000 | mixed 1.15% to 17.5% monthly |
| 6 | Shire Leasing | Entry-level developers tackling smaller renovation and conversion jobs | £5,000 to £750,000 | interest 4% to 11% monthly |
| 7 | Shireassetfinance | Newer developers needing quick terms on light refurbishment finance | £5,000 to £750,000 | interest 4.5% to 12% monthly |
| 8 | United Trust Bank | Established developers comparing bank-backed bridging for larger projects | £100,000 to £35,000,000 | interest 5% to 12.5% annually |
| 9 | Barclays | Property investors considering high-street lending alongside specialist alternatives | £1,000 to £25,000,000 | interest 8.5% to 14.9% annually |
| 10 | MT Finance | Experienced developers needing competitive rates on mid-size property schemes | £50,000 to £10,000,000 | interest 0.89% to 1.05% monthly |
Development finance is short-term lending that releases funds in stages as building work progresses, helping property developers cover land acquisition, construction costs, and professional fees. It suits developers tackling smaller-scale projects where cashflow timing matters more than sheer loan size. For a £200,000 facility, this typically means single-unit residential schemes, light refurbishments, or small commercial conversions.
Comparison goes beyond headline rates. Look at how the lender structures drawdowns: some charge interest only on drawn funds, others on the full facility from day one. Check whether they lend against land value, gross development value, or total project cost. Assess their experience with projects at the £200,000 scale. Some lenders specialise in larger schemes and may not give smaller proposals proper attention.
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 interest from 1.6% makes this a cost-conscious route for property developers funding lighter-touch renovations or ground-up builds. One Stop Business Finance structures development facilities from £100,000 to £3 million, releasing funds in stages as work progresses. Funding typically completes within five days. The trade-off is staged drawdowns require disciplined project management and regular site monitoring.
Best next step: Compare development finance rates and staged drawdown terms.
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Monthly rates from 1.6%
- Staged drawdowns match project progress
- Facilities from £100,000 to £3 million
Need to know
- Staged drawdowns require site monitoring
- Personal guarantee may be needed
- Legal and valuation costs apply
Expert take
A flexible funder comfortable with both light refurbishment and ground-up development. For a £200,000 project, the staged drawdown model keeps interest costs aligned with actual spend rather than the full facility from day one.
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: Funding decisions within 24 hours make Inhale Capital a strong pick when a site purchase deadline is looming. Property-backed facilities reach £2 million, with monthly rates from 1.05%, so developers of smaller schemes can move quickly without excessive cost. The catch: short-term secured loans demand a clear exit strategy, whether refinance or sale, before the term ends.
Best next step: Check eligibility for 24-hour property-backed funding.
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Rates from 1.05% monthly
- Decisions within 24 hours
- Facilities up to £2 million
Need to know
- Clear exit strategy required
- Property security is mandatory
- Short-term facility only
Expert take
A speed-first property lender that suits developers who need to lock in a site purchase fast. For a £200,000 development project, the low entry rate helps keep holding costs down while planning permission or works get underway.
Brightstar
Published loan rangeFrom £50,000
Rate typeinterest 5% to 12% annually
Overview: A starting point of £50,000 puts Brightstar within reach of developers tackling smaller infill projects or single-unit conversions. Annual rates run from 5% to 12%, and funding can land within 24 hours, which helps when an auction purchase needs completing. The limitation is that annualised pricing can mask the true cost on very short terms, so compare carefully.
Best next step: Explore bridging and development terms from £50,000.
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Annual rates from 5%
- Funding from £50,000
- 24-hour decision turnaround
Need to know
- Annualised pricing needs comparison
- Exit strategy scrutiny applies
- Valuation costs are typical
Expert take
A bridging and development specialist with a low minimum facility size that opens doors for first-time developers and lighter refurbishment plays. The 24-hour decision window works well for auction-backed £200,000 projects where speed to exchange is critical.
Momenta Finance
Published loan range£50,000 to £2,000,000
Rate typeinterest 8% to 24% annually
Overview: Momenta Finance writes bridging loans from £50,000 to £2 million, giving developers a secured short-term facility to fund acquisitions or light works before refinancing onto longer-term debt. Annual rates span 8% to 24%, with funding released in 48 hours. The caveat is that established trading history strengthens the application, so newer SPVs may face closer scrutiny.
Best next step: See bridging loan terms for development acquisitions.
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- 48-hour funding release
- Loans from £50,000 to £2 million
- Secured on property assets
Need to know
- Trading history strengthens applications
- Personal guarantee may apply
- Legal and valuation fees payable
Expert take
A secured lender that bridges the gap between purchase and permanent finance. For a £200,000 development deal, the bridging structure buys time to secure planning consent or complete enabling works before locking in a cheaper facility.
Nucleus Commercial Finance
Published loan range£3,000 to £2,000,000
Rate typemixed 1.15% to 17.5% monthly
Overview: Nucleus Commercial Finance serves established SMEs with property security, making it a practical bridge for developers who run a trading business alongside their project. Facilities reach £2 million, with monthly rates between 1.15% and 17.5% depending on risk. Decisions land within 24 hours. The trade-off is that lighter-touch applications may price toward the upper end of that rate band.
Best next step: View bridging terms for established SME developers.
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Decisions in 24 hours
- Facilities from £3,000 to £2 million
- Blends bridging and commercial lending
Need to know
- Pricing varies widely with risk
- Established SMEs preferred
- Property security is essential
Expert take
A lender that blends bridging speed with a commercial lending mindset. For a £200,000 development, the low minimum facility size and 24-hour turnaround make it viable for smaller builders who already have a trading entity and property to secure against.
Shire Leasing
Published loan range£5,000 to £750,000
Rate typeinterest 4% to 11% monthly
Overview: Shire Leasing labels its facility Property Development Finance, targeting developers directly rather than rebadging a general bridging product. The range tops out at £750,000, with monthly rates from 4% to 11% and decisions in 24 hours. Its underwriting favours revenue-generating SMEs, so developers with an existing trading business are likely to see smoother approvals.
Best next step: Review Property Development Finance product details.
More info
Company stats
Loan range
Rates and debtor rules
Benefits
- Purpose-built development product
- Decisions within 24 hours
- Loans from £5,000 to £750,000
Need to know
- Monthly rates from 4% to 11%
- Revenue-generating SMEs favoured
- Security and valuation costs apply
Expert take
A niche funder whose product is built for development rather than adapted from bridging. For a £200,000 scheme, the direct product fit is encouraging, and the monthly rate landed will depend on the security and trading profile presented.
Shireassetfinance
Published loan range£5,000 to £750,000
Rate typeinterest 4.5% to 12% monthly
Overview: Four hours is the turnaround Shireassetfinance quotes for its Property Development Finance product, making it a serious option when auction deadlines leave no room for delay. Facilities reach £750,000, with monthly rates from 4.5% to 12%. The trade-off is that rapid underwriting can push pricing toward the upper end of the rate band, so factor that into project costings.
Best next step: Check four-hour funding for auction deadlines.
More info
Company stats
Loan range
Rates and debtor rules
Benefits
- Four-hour decision turnaround
- Development-specific product
- Facilities up to £750,000
Need to know
- Speed can push rates higher
- Trading business profile preferred
- Property-backed security required
Expert take
A rapid-response lender whose four-hour turnaround is built for auction deadlines and time-sensitive site acquisitions. For a £200,000 development, the speed gives genuine bargaining power when bidding against cash buyers who expect to close quickly.
United Trust Bank
Published loan range£100,000 to £35,000,000
Rate typeinterest 5% to 12.5% annually
Overview: Bridging facilities from £100,000 to £35 million signal United Trust Bank's institutional-grade funding capacity, giving developers of modest schemes access to a lender built for far larger deals. Annual rates of 5% to 12.5% come with a 48-hour decision window. The limitation is that underwriting expectations may be more rigorous than boutique alternatives, particularly around exit planning.
Best next step: Explore institutional-grade bridging for development.
More info
Company stats
Loan range
Rates and debtor rules
Benefits
- Institutional balance sheet
- Annual rates from 5%
- 48-hour decision window
Need to know
- Rigorous underwriting expected
- Exit plan must be documented
- Minimum facility of £100,000
Expert take
A bank-backed bridging lender with the balance sheet to fund anything from a single-unit conversion to a multi-phase scheme. For a £200,000 development project, the institutional pricing and process rigour can be an advantage if the exit strategy is well-documented.
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 clearing-bank credibility to development funding, which can reassure planners, contractors and joint venture partners. Facilities stretch from £1,000 to £25 million, with annual rates between 8.5% and 14.9%, and a 24-hour initial response. The trade-off is that high-street banks tend to demand fuller financial disclosure and a longer path from decision to completion than specialist development lenders.
Best next step: Check Barclays development and bridging options.
More info
Company stats
Loan range
Rates and debtor rules
Benefits
- High-street bank credibility
- Facilities up to £25 million
- 24-hour initial response
Need to know
- Full financial disclosure needed
- Longer completion path likely
- Stricter credit requirements apply
Expert take
A high-street giant that lends across the full development spectrum. For a £200,000 project, the brand recognition and regulated status carry weight with stakeholders, and developers should budget extra time for credit committee and valuation processes.
MT Finance
Published loan range£50,000 to £10,000,000
Rate typeinterest 0.89% to 1.05% monthly
Overview: MT Finance prices monthly from 0.89%, making it one of the sharpest short-term secured options available. Facilities run from £50,000 to £10 million with decisions in 24 hours, suiting developers who need to keep holding costs low while securing a site or completing light refurbishment. The caveat is that headline rates typically require clean security and a well-evidenced exit.
Best next step: Compare MT Finance bridging rates from 0.89%.
More info
Company stats
Loan range
Rates and debtor rules
Benefits
- Monthly rates from 0.89%
- Facilities to £10 million
- 24-hour funding decisions
Need to know
- Best rates need clean security
- Exit evidence is critical
- Short-term secured lending only
Expert take
A competitively priced bridging specialist whose rate structure appeals to margin-sensitive developers. For a £200,000 project, the low monthly cost helps preserve profit for applicants who meet the credit and security thresholds.
Source:https://www.mt-finance.com/
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How development finance works for smaller property projects
Development finance for a £200,000 project works differently from larger schemes. Lenders release funds in stages, tied to build milestones rather than as a single lump sum. For a single-unit conversion, light refurbishment, or small new build, this staged approach keeps costs controlled and the lender comfortable.
Most providers on this list offer terms between 3 and 18 months. One Stop Business Finance offers facilities from 3 to 18 months. MT Finance starts from just 1 month, suiting quick refurbishment projects. Interest is charged monthly on drawn funds only, so you pay only for what you use.
For a £200,000 facility, you need a clear exit strategy. Most lenders expect a confirmed sale, a refinance plan, or rental income projections. The loan is repaid in full at the end of the term, typically from sale proceeds or by refinancing onto a longer-term mortgage product.
Loan-to-value ratios for a £200,000 development loan
The LTV ratio sets how much a lender will advance against your project value. For development finance, lenders assess both the current site value or purchase price and the projected gross development value, or GDV. Most specialist development lenders cap advances at 70% to 75% of GDV.
On this list, One Stop Business Finance and Inhale Capital both offer up to 75% LTV. United Trust Bank also caps at 75%. MT Finance offers up to 70% LTV. Brightstar stands out with up to 100% LTV in certain circumstances, though this usually requires additional security.
If your GDV is £280,000 and the lender caps at 75% LTV, the maximum advance would be £210,000. Lenders also look at build costs and site value separately. You should expect to contribute at least 25% to 30% of total project costs from your own funds. Lenders want to see you have skin in the game before they commit.
Interest rates and costs on a £200k development facility
Development finance rates vary by lender, project type, and your experience. Most specialist lenders price using a monthly interest rate on drawn funds. Among the lenders on this list, monthly rates range from 0.89% with MT Finance to 3% with One Stop Business Finance at the upper end. Inhale Capital publishes a tighter band of 1.05% to 1.3% per month.
Some lenders quote annual rates instead. Brightstar publishes rates from 5% to 12% annually, and United Trust Bank from 5% to 12.5% annually. Annual-rate products tend to suit lower-risk projects or experienced developers with a strong track record.
On a £200,000 facility drawn across 12 months at 1.1% per month, your interest cost would sit near £2,200 per month on the drawn balance. Arrangement fees, valuation costs, legal fees, and exit fees can add another 2% to 5% of the loan amount. Always request a full cost breakdown before committing.
Preparing a strong application for £200,000 development finance
Lenders scrutinise smaller development projects carefully. Your application should include a detailed build schedule with cost breakdowns, evidence of planning permission, a realistic GDV backed by local comparable sales, and proof of your development experience.
Personal guarantees are standard across this market. One Stop Business Finance, Inhale Capital, Brightstar, Momenta Finance, and Nucleus Commercial Finance all require one, meaning personal liability if the project fails. Some lenders also require you to be a homeowner: Momenta Finance and Nucleus Commercial Finance both do.
Trading history requirements vary. Nucleus Commercial Finance accepts businesses from 4 months of trading with £50,000 minimum turnover. Momenta Finance asks for 2 years and £350,000 turnover. One Stop Business Finance sets no minimum trading history or turnover requirement, which helps first-time developers using a special purpose vehicle.
Most lenders expect a minimum project profit margin of 20% to 25% after all costs. Present your figures clearly and stay realistic about build timelines and sale values.
