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Top £400,000 Development Finance Lenders in the UK for 2026
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Top 10 Development Finance Lenders for £400,000 Property Projects
| Rank | Lender | Best for | Published loan range | Loan rate |
|---|---|---|---|---|
| 1 | One Stop Business Finance | Residential development projects requiring £400,000 in staged funding | £100,000 to £3,000,000 | interest 1.6% to 3% monthly |
| 2 | Inhale Capital | Fast-turnaround light refurbishment projects needing quick capital release | £0 to £2,000,000 | interest 1.05% to 1.3% monthly |
| 3 | Brightstar | Property conversions and ground-up builds from £50,000 upwards | From £50,000 | interest 5% to 12% annually |
| 4 | Momenta Finance | Short-term bridging for developers purchasing sites ahead of development finance | £50,000 to £2,000,000 | interest 8% to 24% annually |
| 5 | Nucleus Commercial Finance | Flexible bridging for site acquisition before arranging main development funding | £3,000 to £2,000,000 | mixed 1.15% to 17.5% monthly |
| 6 | Shire Leasing | Smaller-scale residential builds with total project costs under £750,000 | £5,000 to £750,000 | interest 4% to 11% monthly |
| 7 | Shireassetfinance | Budget-conscious development projects requiring cost-effective short-term finance | £5,000 to £750,000 | interest 4.5% to 12% monthly |
| 8 | United Trust Bank | Included for comparison; larger projects needing institutional finance backing | £100,000 to £35,000,000 | interest 5% to 12.5% annually |
| 9 | Barclays | Established developers with proven track records seeking bank-backed funding | £1,000 to £25,000,000 | interest 8.5% to 14.9% annually |
| 10 | MT Finance | Experienced developers wanting competitive monthly rates on substantial projects | £50,000 to £10,000,000 | interest 0.89% to 1.05% monthly |
Development finance releases funds in stages as building work progresses, so property developers only draw down what they need when they need it. This staged approach keeps interest costs lower than a term loan and matches the natural cash flow of a construction project. For residential and commercial developers seeking £400,000 development finance, it bridges the gap between purchasing a site and completing the build — typically supporting a small to mid-sized ground-up development or a substantial conversion.
Choosing the right development finance lender means looking beyond the headline rate. Check whether the lender offers staged drawdowns matched to your build schedule, as this directly affects cash flow. Compare interest methods — some charge monthly on drawn funds only, while others accrue on the full facility. Examine the loan-to-cost and loan-to-GDV ratios each lender accepts, because these determine your equity requirement. Speed of initial drawdown matters when a site purchase is time-sensitive.
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: Lending between £100,000 and £3,000,000 for development projects, One Stop Business Finance suits property developers who need a straightforward facility for a mid-scale residential or commercial build. Funding can complete in five working days, and monthly rates start at 1.6%. Be ready to present a clear exit strategy and a viable project plan.
Best next step: Request development finance terms through Funding Agent
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Funds development projects up to £3 million
- Completion possible within five working days
- Monthly rates from 1.6%
Need to know
- Requires clear exit strategy
- Viable project plan needed
- Monthly interest model applies
Expert take
A direct lender with a practical approach to development funding. For a £400,000 project, their five-day turnaround and willingness to consider varied development types works in a developer's favour.
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: Speed is the defining feature here. Inhale Capital can turn around a property-backed facility within 24 hours, making it a candidate when a development opportunity cannot wait. Monthly rates run from 1.05% to 1.3%. The trade-off is that lending is strictly asset-backed, so the property must carry enough equity to support the advance.
Best next step: Check Inhale Capital rates and terms
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Funding decisions within 24 hours
- Monthly rates from 1.05%
- Lends up to £2 million
Need to know
- Requires sufficient property equity
- Short-term secured lending only
- Exit strategy likely required
Expert take
A short-term secured lender built for pace. For a £400,000 development finance requirement, the 24-hour decision window and competitive monthly rates from 1.05% give developers speed without excessive cost.
Brightstar
Published loan rangeFrom £50,000
Rate typeinterest 5% to 12% annually
Overview: Annual interest from 5% puts Brightstar among the more cost-conscious options for a development or bridging facility. Funding decisions come within 24 hours, and the minimum loan starts at £50,000. Borrowers should expect a full property valuation and a demonstrable repayment route as standard.
Best next step: Compare Brightstar's annual-rate funding
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Annual rates from 5%
- Decisions within 24 hours
- Minimum loan of £50,000
Need to know
- Full property valuation required
- Demonstrable repayment route needed
- Annual interest pricing applies
Expert take
A property-secured lender that prices on an annual basis rather than monthly, which can simplify cost comparison. For a £400,000 development project, the annual rate structure and quick terms make them worth comparing.
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 £2,000,000, which can serve as development finance where a short-term secured facility fits the project timeline. Funding can complete within 48 hours. Annual rates range from 8% to 24%, so cost will depend heavily on the strength of the application and the security offered.
Best next step: Explore Momenta bridging for development
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Loans from £50,000 to £2,000,000
- Funding within 48 hours
- Suitable for property-secured developments
Need to know
- Annual rates from 8% to 24%
- Security and valuation required
- Short-term bridging structure applies
Expert take
An established secured lender with a broad bridging appetite. For a £400,000 development project, the 48-hour turnaround and loan ceiling of £2,000,000 give a developer ample headroom; pricing reflects the speed and flexibility on offer.
Nucleus Commercial Finance
Published loan range£3,000 to £2,000,000
Rate typemixed 1.15% to 17.5% monthly
Overview: Nucleus Commercial Finance brings a flexible bridging product that property developers can deploy for site acquisition or light refurbishment costs. Their loan range runs from £3,000 to £2,000,000, and decisions land within 24 hours. Monthly rates start at 1.15% but can climb depending on risk, so a well-prepared application matters.
Best next step: Request bridging terms from Nucleus
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Decisions within 24 hours
- Loans from £3,000 to £2,000,000
- Suitable for site acquisition funding
Need to know
- Monthly rates from 1.15% to 17.5%
- Risk-based pricing applies
- Security and valuation required
Expert take
A commercial finance provider with a wide bridging envelope. For a £400,000 development need, the 24-hour decision and low entry point of £3,000 mean they can handle top-ups or full project facilities alike.
Shire Leasing
Published loan range£5,000 to £750,000
Rate typeinterest 4% to 11% monthly
Overview: Shire Leasing offers property development finance from £5,000 to £750,000, covering ground-up builds, conversions and refurbishments. Decisions can arrive within 24 hours. Monthly rates sit between 4% and 11%, placing this at the higher-cost end of the market for shorter-term development funding.
Best next step: Check Shire Leasing development terms
More info
Company stats
Loan range
Rates and debtor rules
Benefits
- Property development finance up to £750,000
- Decisions within 24 hours
- Covers conversions and refurbishments
Need to know
- Monthly rates from 4% to 11%
- Higher-cost short-term funding
- Detailed project plan likely needed
Expert take
A funder blending asset finance heritage with property development lending. For a £400,000 project, the 24-hour response and willingness to consider varied development types add value; monthly rates reflect the risk profile taken.
Shireassetfinance
Published loan range£5,000 to £750,000
Rate typeinterest 4.5% to 12% monthly
Overview: A four-hour funding decision sets Shireassetfinance apart for developers racing against a deadline. Their property development finance product covers projects from £5,000 to £750,000. Monthly rates begin at 4.5%, so speed comes at a premium. Expect a robust security assessment despite the quick turnaround.
Best next step: Explore Shireassetfinance's fast terms
More info
Company stats
Loan range
Rates and debtor rules
Benefits
- Decision in as little as 4 hours
- Development finance up to £750,000
- Covers varied project types
Need to know
- Monthly rates from 4.5% to 12%
- Speed carries a cost premium
- Security assessment still applies
Expert take
A rapid-response lender geared for time-sensitive development scenarios. For a £400,000 project, the four-hour decision speed is a genuine differentiator; cost reflects the urgency premium.
United Trust Bank
Published loan range£100,000 to £35,000,000
Rate typeinterest 5% to 12.5% annually
Overview: United Trust Bank prices its bridging on an annual basis from 5%, which can make cost comparison easier for a developer running the numbers on a project of this scale. The loan book stretches to £35,000,000, and funding typically completes within 48 hours. Expect thorough underwriting and a full valuation as part of the process.
Best next step: Compare United Trust Bank's terms
More info
Company stats
Loan range
Rates and debtor rules
Benefits
- Annual rates from 5%
- Loans from £100,000 to £35,000,000
- Funding within 48 hours
Need to know
- Thorough underwriting required
- Full property valuation needed
- Bridging structure applies
Expert take
A well-established bank-backed lender with deep property experience. For a £400,000 development, the annual-rate structure and 48-hour completion timeline offer a balance of transparency and pace.
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 bank funding to development projects, with facilities available from £1,000 to £25,000,000. Annual rates run from 8.5% to 14.9%. A 24-hour initial response is possible, though full underwriting will take longer. Developers with strong trading histories and clean credit profiles are the natural fit here.
Best next step: Check Barclays development finance options
More info
Company stats
Loan range
Rates and debtor rules
Benefits
- Bank-backed development funding
- Facilities up to £25,000,000
- Annual-rate pricing from 8.5%
Need to know
- Strong trading history required
- Full underwriting takes longer
- Clean credit profile expected
Expert take
A high-street bank with significant property lending capacity. For a £400,000 development, the brand stability and annual-rate transparency are plus points; underwriting demands a strong financial profile and patience with the process.
MT Finance
Published loan range£50,000 to £10,000,000
Rate typeinterest 0.89% to 1.05% monthly
Overview: MT Finance targets property-backed lending with monthly rates from just 0.89%, among the most competitive in the short-term secured market. The loan book runs from £50,000 to £10,000,000 and decisions land within 24 hours. Developers should note the strict asset-backed criteria; the property is the underwriting anchor.
Best next step: Review MT Finance's competitive rates
More info
Company stats
Loan range
Rates and debtor rules
Benefits
- Monthly rates from 0.89%
- Loans up to £10,000,000
- Decisions within 24 hours
Need to know
- Strict asset-backed criteria apply
- Property is underwriting anchor
- Short-term secured structure
Expert take
A focused property-secured lender with sharp pricing. For a £400,000 development project, the low monthly rate starting at 0.89% and the 24-hour decision window make this a compelling short-term funding option.
Source:https://www.mt-finance.com/
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What property projects can £400,000 development finance fund
A £400,000 development finance facility suits small to medium residential projects. Typical use cases include converting a commercial unit into two or three flats, a single new-build dwelling on a plot you already own, or a heavy refurbishment of a larger property into an HMO.
Most lenders on this list offer facilities that comfortably cover this amount. One Stop Business Finance publishes a range of £100,000 to £3,000,000, while MT Finance lends from £50,000 to £10,000,000. A £400,000 request sits well inside mainstream appetite.
Light refurbishment projects with modest build costs may suit shorter-term facilities. Ground-up developments with longer programme periods need lenders offering terms that match the build schedule. One Stop Business Finance and Inhale Capital both offer terms from 3 to 18 months, which covers most medium-scale residential projects from start to practical completion.
Typical loan-to-value ratios on £400,000 development projects
Most specialist development lenders cap lending at 70% to 75% of gross development value or land-plus-build cost. One Stop Business Finance and Inhale Capital both publish a maximum LTV of 75%. United Trust Bank also sits at 75%. MT Finance caps at 70%.
At £400,000 and 75% LTV, the total project value would be around £533,000. If you are contributing land equity, the lender will typically treat that as part of your stake. If you are buying the site with the same facility, the cash deposit required will depend on the lender's day-one advance against purchase price.
Brightstar stands out at up to 100% LTV, meaning a developer with strong experience and additional security might borrow the full £400,000 without a cash deposit. This is not common across the wider market and usually requires cross-collateralisation against other assets.
Development finance vs bridging loans at the £400,000 level
Development finance and bridging loans both fund property projects, but they work differently. Development finance releases funds in stages as build milestones are reached. You draw down only what you need, when you need it, which keeps interest costs lower during the construction phase. One Stop Business Finance and Inhale Capital both structure facilities this way, with rates from 1.05% to 3% per month depending on the lender and project risk.
A bridging loan delivers a single lump sum, normally used to purchase a property quickly or refinance before a sale. Momenta Finance and Nucleus Commercial Finance offer bridging from £50,000 and £3,000 respectively, with annual rates from 8% and monthly rates from 1.15%.
For a £400,000 ground-up build or major conversion, development finance is usually the better fit. For a quick purchase of a property that needs only light cosmetic work before refinance or resale, a bridge may be simpler and faster to arrange.
How property developers can prepare a strong application for £400,000 development finance
Lenders want to see a clear project plan before committing £400,000. Start with detailed planning permission. Most development lenders will not progress without it.
Prepare a build cost breakdown with contractor quotes. Show the gross development value supported by local comparable sales. Lenders assess whether the GDV comfortably exceeds total costs, giving headroom within their LTV limits.
Your exit strategy matters. Most development lenders want evidence you can repay, whether through sale of the completed units or refinance onto a longer-term commercial mortgage. One Stop Business Finance and Inhale Capital both require personal guarantees, so your own asset position and track record will be assessed alongside the project.
Experienced developers with a portfolio of completed projects will access the lowest rates, from around 0.89% per month at MT Finance to 1.05% at Inhale Capital. First-time developers may face higher pricing and stricter LTV caps.
