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Top 10 Development Finance Lenders for £350,000 Property Projects in 2026
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Top £350,000 Development Finance Lenders Compared
| Rank | Lender | Best for | Published loan range | Loan rate |
|---|---|---|---|---|
| 1 | One Stop Business Finance | Medium-scale residential and commercial development projects needing staged drawdowns | £100,000 to £3,000,000 | interest 1.6% to 3% monthly |
| 2 | Nucleus Commercial Finance | Developers needing fast bridging while arranging longer-term development finance | £3,000 to £2,000,000 | mixed 1.15% to 17.5% monthly |
| 3 | Inhale Capital | Developers seeking low monthly rates on £350k construction and refurbishment projects | £0 to £2,000,000 | interest 1.05% to 1.3% monthly |
| 4 | Brightstar | Property developers comparing annual-rate structures for medium-scale development loans | From £50,000 | interest 5% to 12% annually |
| 5 | Momenta Finance | Established developers with strong turnover bridging on larger project costs | £50,000 to £2,000,000 | interest 8% to 24% annually |
| 6 | mcl finance | Included for comparison; loan ceiling sits below the £350k amount | £5,000 to £100,000 | interest 2.75% to 4% monthly |
| 7 | Shire Leasing | Small to medium property development projects up to £750k needing quick completion | £5,000 to £750,000 | interest 4% to 11% monthly |
| 8 | Shireassetfinance | Developers requiring rapid funding for property development up to £750k | £5,000 to £750,000 | interest 4.5% to 12% monthly |
| 9 | Barclays | Developers who meet high street banking criteria for large development loans | £1,000 to £25,000,000 | interest 8.5% to 14.9% annually |
| 10 | MT Finance | Larger-scale developers seeking competitive monthly rates on multi-million-pound projects | £50,000 to £10,000,000 | interest 0.89% to 1.05% monthly |
Development finance provides short-term funding released in stages to cover land acquisition and construction costs for property projects. It suits property developers and investors who need capital drawn down as work progresses rather than a single upfront lump sum. For a £350,000 facility, this structure typically supports small to medium residential schemes, light commercial conversions, or refurbishment projects where the site value and build costs sit below the threshold for institutional development lenders.
A development finance comparison goes beyond headline rates. Look at the loan-to-value ratio and whether the lender funds against gross development value or project cost. Check if drawdowns align with your build programme and whether interest is charged on drawn funds only or the full facility from day one. Review exit fee structures and any requirement for a quantity surveyor to monitor site progress. A lender's experience with £350,000-scale projects in your sector will shape how smoothly the facility runs.
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: Development finance works best when funds are released in step with build progress. One Stop Business Finance structures facilities with staged drawdowns that match your construction timeline. Rates run from 1.6% to 3% monthly, and funding typically completes within five working days. Expect to provide a detailed project plan and evidence of a viable exit.
Best next step: Check eligibility for staged development funding
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Staged drawdowns match build phases
- Funding in around five working days
- Facilities up to £3 million available
Need to know
- Rates from 1.6% to 3% per month
- Detailed project plan required
- Exit strategy evidence needed
Expert take
A specialist development finance provider comfortable with medium-scale projects. For a £350,000 build, staged drawdowns keep interest costs aligned with progress rather than charging on the full facility from day one.
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: A 24-hour funding turnaround gives developers the speed to secure land or complete an auction purchase without losing the deal. Nucleus Commercial Finance writes bridging facilities from £3,000 to £2 million, with monthly rates between 1.15% and 17.5% depending on risk profile. The trade-off is that higher-risk cases sit at the upper end of that pricing range.
Best next step: Compare bridging rates for fast development funding
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Funding possible within 24 hours
- Wide loan range up to £2 million
- Bridging for land and development
Need to know
- Rates vary widely by risk profile
- Property security is mandatory
- Exit route must be clearly defined
Expert take
A commercial finance lender built for transaction velocity. For a developer chasing a time-sensitive land deal, the underwriting speed converts a £350,000 enquiry into an offer ahead of competing bidders.
Inhale Capital
Published loan range£0 to £2,000,000
Rate typeinterest 1.05% to 1.3% monthly
Overview: Monthly rates from 1.05% keep holding costs manageable during a medium-scale development. Inhale Capital lends up to £2 million against property security, funding decisions within 24 hours. This suits developers who need competitively priced short-term capital for land acquisition or refurbishment projects. Be prepared for standard valuation and legal processes.
Best next step: Explore low-rate short-term property funding
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Rates from 1.05% per month
- Up to £2 million available
- Funding decisions within 24 hours
Need to know
- Property-backed lending only
- Valuation fees apply
- Short-term facility structure
Expert take
A property-secured lender that prices aggressively for clean, well-documented deals. A £350,000 development proposal with a strong exit and decent security should land near the lower end of the published rate band.
Brightstar
Published loan rangeFrom £50,000
Rate typeinterest 5% to 12% annually
Overview: Facilities starting at £50,000 scale up to support substantial residential or commercial schemes. Brightstar funds from £50,000 upwards with annual rates between 5% and 12%, and can turn around decisions within 24 hours. Developers seeking a lender that handles both entry-level and larger projects under one roof will find the flexibility useful. Expect property-backed security requirements.
Best next step: View flexible property-backed funding options
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Funding from £50,000 upwards
- Annual rates from 5% to 12%
- 24-hour decision turnaround
Need to know
- Property security is required
- Rate depends on project risk
- Bridging-style short-term facility
Expert take
A property finance group that works across the loan spectrum from modest refurbishments to larger builds. For a £350,000 construction project, the annualised rate structure simplifies cost comparison against other development finance offers.
Momenta Finance
Published loan range£50,000 to £2,000,000
Rate typeinterest 8% to 24% annually
Overview: Property developers with a clear exit strategy tend to fit this lender's bridging model well. Momenta Finance advances £50,000 to £2 million at annual rates between 8% and 24%, with funding completed within 48 hours. The lender expects established trading history and tangible security. Annual pricing suits borrowers who prefer predictable interest calculations over monthly compounding.
Best next step: Check bridging eligibility for your development project
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Loans from £50,000 to £2 million
- Annual interest from 8%
- Funding within 48 hours
Need to know
- Established trading history needed
- Personal guarantee may apply
- Property security is mandatory
Expert take
An established SME and property lender that favours borrowers who can demonstrate trading track record and a clean exit. A £350,000 development project fits comfortably within its bridging facility range, with annualised rates aiding cost planning.
mcl finance
Published loan range£5,000 to £100,000
Rate typeinterest 2.75% to 4% monthly
Overview: A smaller-ticket lending model suits developers tackling a lighter refurbishment or a single-unit conversion rather than a full ground-up build. Mcl finance writes bridging loans from £5,000 to £100,000 at monthly rates between 2.75% and 4%, with funding decisions in as little as four hours. The published loan ceiling means this lender cannot accommodate a £350,000 facility in a single advance.
Best next step: See if a smaller bridging loan fits your needs
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Decisions in as little as 4 hours
- Loans from £5,000 to £100,000
- Bridging for light refurbishment work
Need to know
- Maximum loan is £100,000
- Rates from 2.75% monthly
- Not suitable for full development
Expert take
A speedy bridging lender best matched to smaller-ticket property deals. For a developer managing multiple concurrent projects, the four-hour turnaround and lean process make it a useful supplementary funding source alongside a main development facility.
Source:https://www.mclfinance.com/
Shire Leasing
Published loan range£5,000 to £750,000
Rate typeinterest 4% to 11% monthly
Overview: Construction sector borrowers often need a lender who understands staged payments, retention sums and the rhythm of a build programme. Shire Leasing provides property development finance from £5,000 to £750,000, with monthly rates between 4% and 11%. Funding decisions come within 24 hours. The product is structured for developers who need working capital tied to project milestones.
Best next step: Explore development finance with staged payments
More info
Company stats
Loan range
Rates and debtor rules
Benefits
- Up to £750,000 for development
- Funding decisions in 24 hours
- Staged payment structure available
Need to know
- Rates from 4% to 11% monthly
- Detailed build plan required
- Security against the property
Expert take
A lender blending development finance with asset-backed lending experience. For a £350,000 construction project, the facility ceiling leaves headroom, and the staged drawdown model mirrors how real build costs actually unfold on site.
Shireassetfinance
Published loan range£5,000 to £750,000
Rate typeinterest 4.5% to 12% monthly
Overview: Decisions in as little as four hours help developers move on time-sensitive site acquisitions where hesitation costs money. Shireassetfinance lends £5,000 to £750,000 for property development, with monthly rates from 4.5% to 12%. The rapid underwriting suits experienced developers who submit clean, well-documented applications. Expect higher rates for speed and flexibility.
Best next step: Get a rapid decision on development funding
More info
Company stats
Loan range
Rates and debtor rules
Benefits
- Funding decisions in 4 hours
- Up to £750,000 available
- Development and property finance
Need to know
- Rates from 4.5% to 12% monthly
- Clean documentation required
- Short-term facility only
Expert take
A fast-moving finance provider geared for developers who value speed over headline rate. The four-hour decision window and £750,000 ceiling make a £350,000 facility achievable for a borrower who arrives with plans, valuations and exit evidence ready.
Barclays
Published loan range£1,000 to £25,000,000
Rate typeinterest 8.5% to 14.9% annually
Overview: A high-street bank with a £25 million upper limit brings institutional backing to medium-scale development projects. Barclays lends from £1,000 to £25 million at annual rates between 8.5% and 14.9%, with funding decisions typically within 24 hours of receiving a completed application. Bank underwriting standards are thorough, so expect detailed affordability checks and a longer overall process.
Best next step: Compare bank development finance rates
More info
Company stats
Loan range
Rates and debtor rules
Benefits
- Annual rates from 8.5%
- Loans up to £25 million
- High-street institutional backing
Need to know
- Thorough underwriting process
- Strong trading history needed
- Security and personal guarantee likely
Expert take
A mainstream bank that brings brand stability and annualised pricing to property development lending. For a £350,000 construction project, the rate band and institutional backing appeal, though bank-style credit assessment means a slower path to completion than specialist alternatives.
MT Finance
Published loan range£50,000 to £10,000,000
Rate typeinterest 0.89% to 1.05% monthly
Overview: Rates under 1% per month make this lender worth comparing for cost-conscious developers running a medium-scale residential or commercial project. MT Finance lends £50,000 to £10 million at monthly rates from 0.89% to 1.05%, funding within 24 hours. The low-rate band reflects a lender that prioritises well-secured, lower-risk deals with strong exit strategies.
Best next step: Check low-rate development bridging eligibility
More info
Company stats
Loan range
Rates and debtor rules
Benefits
- Monthly rates from 0.89%
- Loans from £50,000 to £10 million
- Funding within 24 hours
Need to know
- Strong exit strategy essential
- Property security required
- Lower risk appetite than some
Expert take
A property finance house that rewards low-risk, well-planned development propositions with keen pricing. A £350,000 project with strong security and a watertight exit is the kind of deal this lender actively pursues.
Source:https://www.mt-finance.com/
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How LTV ratios shape a £350,000 development finance deal
LTV (loan-to-value) is one of the most important numbers in a £350,000 development finance deal. Most lenders cap their development lending between 60% and 70% of the gross development value, which means you will need to cover the remaining cost with your own cash or through mezzanine finance.
Among the lenders on this page, MT Finance publishes a maximum LTV of 70%, while One Stop Business Finance and Inhale Capital both go up to 75%. Brightstar stands out with a published LTV of up to 100%, though the terms attached to higher-LTV facilities tend to reflect the increased risk the lender is taking.
For a £350,000 project, a 70% LTV cap means the lender would advance up to £245,000 against a GDV of £350,000. If your site purchase and build costs total less than the GDV, you may be able to stretch the facility further. Always check whether the lender calculates LTV against GDV, land value, or total project cost before you apply.
How drawdown structures work for £350,000 development projects
Unlike a term loan that drops the full amount into your account on day one, development finance for a £350,000 construction project is typically released in stages. This drawdown structure protects the lender by matching funding to project milestones.
A typical medium-scale development might see an initial release to cover land acquisition, followed by further drawdowns at foundation stage, wall plate, wind and watertight, and practical completion. Each drawdown usually requires a monitoring surveyor to sign off that the work has been completed to standard before funds are released.
This staged approach means you need to plan your cash flow carefully. You may need to cover some upfront costs before the first drawdown lands. Some lenders also retain a percentage of each drawdown as a contingency, releasing it only at the end of the build. Check the drawdown schedule and any retention terms before you commit to a facility.
Exit strategies for a £350,000 development finance facility
Every development finance lender will ask about your exit strategy before they agree to a £350,000 facility. The exit strategy is how you plan to repay the loan at the end of the term, and it matters as much as the project itself.
The most common exit routes for medium-scale developers are selling the completed property on the open market, refinancing onto a buy-to-let mortgage to hold and rent, or using a longer-term commercial mortgage if the project is a mixed-use or commercial scheme.
Lenders on this page offer varying maximum terms that affect your exit timeline. One Stop Business Finance and Inhale Capital both publish maximum terms of 18 months, giving you a year and a half to complete and exit. Shire Leasing and Shireassetfinance both extend to 6 years, which suits projects with a longer sales period or a phased exit. MT Finance publishes terms from 1 month to 2 years. Your exit strategy should comfortably fit within the lender's maximum term, with a buffer for delays.
Comparing lenders for £350,000 development finance in construction
With several lenders active in the £350,000 development finance space, comparing offers comes down to more than just the headline rate. For a construction project, the right facility depends on how the rate, fees, LTV, and drawdown terms work together.
Monthly rates vary considerably. MT Finance publishes rates from 0.89% to 1.05% per month. Inhale Capital sits between 1.05% and 1.3% per month. One Stop Business Finance publishes a wider band of 1.6% to 3% per month. Shire Leasing and Shireassetfinance publish rates from 4% to 12% per month, so they sit at the higher end. Barclays publishes annual rates from 8.5% to 14.9%, which may suit borrowers who prefer an annualised structure.
Beyond rates, compare the maximum LTV available, the drawdown schedule, any exit fees, and whether the lender charges for the monitoring surveyor. Also check minimum terms: One Stop Business Finance requires a minimum of 3 months, while MT Finance starts at just 1 month. The cheapest monthly rate does not always deliver the best net outcome for your project.
