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Top 10 Development Finance Lenders for £700,000 Projects in 2026
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Top 10 Development Finance Lenders for £700,000 Property Projects
| Rank | Lender | Best for | Published loan range | Loan rate |
|---|---|---|---|---|
| 1 | One Stop Business Finance | Mid-sized property developers funding residential or mixed-use builds | £100,000 to £3,000,000 | interest 1.6% to 3% monthly |
| 2 | Inhale Capital | Cost-focused developers seeking low monthly rates on mid-scale projects | £0 to £2,000,000 | interest 1.05% to 1.3% monthly |
| 3 | Brightstar | Developers who prefer annual interest structures for medium-sized schemes | From £50,000 | interest 5% to 12% annually |
| 4 | Momenta Finance | Established developers using bridging finance for development purposes | £50,000 to £2,000,000 | interest 8% to 24% annually |
| 5 | Nucleus Commercial Finance | Semi-experienced developers funding property projects via bridging | £3,000 to £2,000,000 | mixed 1.15% to 17.5% monthly |
| 6 | Shire Leasing | Developers with projects falling within the £750,000 lending ceiling | £5,000 to £750,000 | interest 4% to 11% monthly |
| 7 | Shireassetfinance | Smaller-scale property developers needing up to £750,000 in funding | £5,000 to £750,000 | interest 4.5% to 12% monthly |
| 8 | United Trust Bank | Experienced developers comparing bank-backed bridging for larger schemes | £100,000 to £35,000,000 | interest 5% to 12.5% annually |
| 9 | Barclays | Property developers who prefer high-street bank lending for projects | £1,000 to £25,000,000 | interest 8.5% to 14.9% annually |
| 10 | MT Finance | Developers seeking low monthly rates on mid-to-large property developments | £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 building work progresses, letting property developers cover land acquisition and construction costs without tying up all their own cash. It suits experienced and semi-experienced developers tackling mid-sized residential or commercial projects, where a £700,000 facility can bridge the gap between site purchase and final sale or refinance. This type of funding aligns repayment with project milestones rather than monthly cash flow.
Choosing the right development finance lender means looking past the headline rate. Gross loan-to-value ratios determine how much a lender advances against site value and build costs, directly affecting the equity you must commit. Staged drawdown terms influence cash flow during the build. Check whether interest is charged monthly on drawn funds or rolled up until exit, as this shapes the true cost of a £700,000 facility. A lender's experience in your project type can also speed up approvals.
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 mid-scale property development, this lender funds ground-up builds, conversions and heavy refurbishments with facilities up to £3 million. Monthly interest from 1.6% keeps holding costs predictable across the project term. Funding typically lands within five working days once the valuer signs off, though you will need a clear exit strategy and evidence of a realistic GDV.
Best next step: Check eligibility for £700k development projects
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Funds new builds and heavy refurbishments
- Monthly rates start from 1.6%
- Facilities available up to £3 million
Need to know
- Requires clear exit strategy and realistic GDV
- Valuation sign-off needed before drawdown
- Trading history and affordability checks apply
Expert take
A direct development finance lender built for mid-market property projects. Works well for £700k schemes where the borrower has a proven track record and the numbers stack up on a residual valuation.
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 can land within 24 hours, which matters when a site purchase is time-sensitive and a conventional loan would take too long. Monthly rates sit between 1.05% and 1.3%, keeping short-term holding costs manageable while you line up longer-term development finance or a sale. Bridging works best here as a pre-development or site-acquisition tool rather than a full build facility.
Best next step: Explore fast bridging for site acquisition
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Decisions and funding within 24 hours
- Monthly rates from 1.05%
- Suitable for time-sensitive purchases
Need to know
- Bridging, not full development finance
- Property-backed, valuation required
- Exit-risk checks apply before approval
Expert take
A speed-focused property lender that suits developers who need to move fast on a site. A £700,000 bridge can secure the land while longer-term development funding is arranged.
Brightstar
Published loan rangeFrom £50,000
Rate typeinterest 5% to 12% annually
Overview: Brightstar quotes rates annually rather than monthly, starting from 5%, which makes cost comparison with bank development loans straightforward. Funding from £50,000 upwards suits developers who prefer a transparent annualised rate structure. Decisions come within 24 hours, and the lender works with property-backed cases across residential and mixed-use schemes.
Best next step: Compare annual rates for your development
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Annual rates from 5%, not monthly
- Decisions within 24 hours
- Minimum loan from £50,000
Need to know
- Annual rate structure, not monthly
- Property security always required
- Exit strategy must be clearly defined
Expert take
A broker-facing bridging and development lender with an annual rate model that suits borrowers who find monthly rates opaque. A solid fit for a £700,000 project where transparency matters.
Momenta Finance
Published loan range£50,000 to £2,000,000
Rate typeinterest 8% to 24% annually
Overview: Momenta Finance lends from £50,000 to £2 million against property, with annual rates starting at 8% and funding available within 48 hours. The lender favours experienced property developers who can demonstrate a clear exit strategy and pass affordability checks.
Best next step: Apply for property-backed bridging up to £2M
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Loans from £50,000 to £2 million
- Annual rates starting at 8%
- Funding available within 48 hours
Need to know
- Requires established trading history
- Affordability and security checks apply
- Exit route must be clearly evidenced
Expert take
An established secured lender that leans towards experienced SMEs with property assets. For a £700,000 development bridging need, the terms suit borrowers who can show a strong track record.
Nucleus Commercial Finance
Published loan range£3,000 to £2,000,000
Rate typemixed 1.15% to 17.5% monthly
Overview: Nucleus covers a broad spectrum, lending from £3,000 to £2 million, which signals flexibility for developers who may also need smaller tranches alongside a main £700,000 facility. Monthly rates start at 1.15% for cleaner cases, and decisions typically land within 24 hours. The mixed rate structure means cost varies significantly with risk profile.
Best next step: Check rates for your risk profile
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Wide lending range, highly flexible
- Monthly rates from 1.15%
- Funding decisions within 24 hours
Need to know
- Rate varies widely with risk
- Property security required throughout
- Exit strategy assessment is mandatory
Expert take
A versatile secured lender whose broad appetite covers both small and mid-sized property deals. A £700,000 facility benefits from their flexible approach, with pricing matched to the deal's merits.
Shire Leasing
Published loan range£5,000 to £750,000
Rate typeinterest 4% to 11% monthly
Overview: Shire Leasing offers dedicated property development finance, not just bridging, with facilities up to £750,000 covering ground-up builds and major refurbishments. Monthly rates range from 4% to 11%, and decisions come within 24 hours. The product is built for developers who need staged drawdowns rather than a single bridging advance.
Best next step: Explore staged development drawdowns
More info
Company stats
Loan range
Rates and debtor rules
Benefits
- Dedicated development finance product
- Staged drawdowns for build phases
- Decisions within 24 hours
Need to know
- Upper limit of £750,000
- Monthly rates from 4% to 11%
- Requires detailed project costings
Expert take
A development finance specialist whose £750,000 ceiling means a £700,000 project fits but leaves little headroom. Best suited to developers with tightly costed schemes.
Shireassetfinance
Published loan range£5,000 to £750,000
Rate typeinterest 4.5% to 12% monthly
Overview: With a four-hour decision window, this is one of the fastest development finance options on the panel. Monthly rates start at 4.5%, and the product covers new builds and refurbishments with staged payments aligned to build milestones. Detailed costings are essential at this loan level.
Best next step: Get a development finance decision in hours
More info
Company stats
Loan range
Rates and debtor rules
Benefits
- Decisions in as little as 4 hours
- Staged payments for build phases
- Covers new builds and refurbishments
Need to know
- Upper lending limit of £750,000
- Monthly rates from 4.5% to 12%
- Detailed cost plan required upfront
Expert take
A rapid-response development lender that prioritises speed for time-pressed projects. A £700,000 scheme fits within their lending appetite, rewarding developers who submit precise, well-documented costings.
United Trust Bank
Published loan range£100,000 to £35,000,000
Rate typeinterest 5% to 12.5% annually
Overview: United Trust Bank writes bridging facilities from £100,000 up to £35 million, with annual rates starting at 5%. Funding completes within 48 hours for straightforward property-backed cases. The lender's institutional scale means it handles complex residential and mixed-use projects, though underwriting standards are correspondingly thorough.
Best next step: Access institutional backing for your project
More info
Company stats
Loan range
Rates and debtor rules
Benefits
- Lends up to £35 million
- Annual rates starting at 5%
- Funding within 48 hours
Need to know
- Institutional underwriting standards apply
- Property-backed security required
- Minimum loan of £100,000
Expert take
An institutional bridging lender with deep funding lines. A £700,000 facility suits their lending model, and the annual rate structure helps borrowers comparing against high-street terms.
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 backing to development funding, with facilities from £1,000 to £25 million and annual rates from 8.5%. Decisions can come within 24 hours for simpler cases, though full underwriting and security formalities will extend the timeline. A £700,000 development loan from a high-street bank typically demands a strong track record and clean credit.
Best next step: Apply for bank-backed development funding
More info
Company stats
Loan range
Rates and debtor rules
Benefits
- Mainstream bank lending up to £25M
- Annual rates from 8.5%
- Broad product coverage for developers
Need to know
- Stricter bank underwriting standards
- Requires strong trading history
- Legal and valuation costs apply
Expert take
A high-street bank with the balance sheet for mid-scale development lending. A £700,000 project fits their appetite, with the credit bar set higher than specialist lenders, as expected from a high-street bank.
MT Finance
Published loan range£50,000 to £10,000,000
Rate typeinterest 0.89% to 1.05% monthly
Overview: MT Finance offers some of the lowest monthly bridging rates on this list, from 0.89% to 1.05%, making a £700,000 facility more affordable to service month by month. The lender covers loans from £50,000 to £10 million and delivers decisions within 24 hours. Property-backed security is standard, and the focus is on clean, well-structured deals with clear exit routes.
Best next step: Secure low monthly rates for your bridge
More info
Company stats
Loan range
Rates and debtor rules
Benefits
- Monthly rates from just 0.89%
- Loans up to £10 million
- Decisions within 24 hours
Need to know
- Best rates for clean, low-risk deals
- Property security always required
- Clear exit route is essential
Expert take
A competitively priced bridging lender whose low monthly rates make a £700,000 facility cheaper to hold. Best suited to developers with straightforward, well-documented exit strategies.
Source:https://www.mt-finance.com/
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LTV ratios and deposit requirements for £700,000 property developments
At £700,000, the loan-to-value ratio your lender offers directly shapes how much equity you must contribute. Most specialist development finance lenders cap LTV between 70% and 75% of gross development value. One Stop Business Finance and Inhale Capital both publish maximum LTVs of 75%. MT Finance sits slightly lower at 70%. At 75% LTV, a £700,000 facility would need around £233,000 in developer equity if the GDV matches the loan amount. At 70%, that rises to £300,000.
Brightstar stands out by offering up to 100% LTV on development projects, which can reduce the upfront cash requirement materially. However, 100% LTV facilities typically require additional security elsewhere, such as a charge over another property or a personal guarantee. United Trust Bank also publishes a 75% LTV cap on its bridging products, which can be used for development purposes. Developers should confirm whether the LTV is calculated against GDV, purchase price, or build cost, as this affects the actual equity needed at each stage.
Typical interest rates for £700,000 development finance
Development finance rates at the £700,000 level vary significantly by lender and structure. Monthly rates dominate the specialist market. Inhale Capital publishes monthly rates from 1.05% to 1.3%, while MT Finance offers from 0.89% to 1.05% per month. One Stop Business Finance sits between 1.6% and 3% monthly. Shire Leasing and Shireassetfinance publish broader monthly ranges of 4% to 11% and 4.5% to 12% respectively, which may reflect higher-risk or shorter-term facilities.
Several lenders quote annual rates instead. Brightstar publishes from 5% to 12% annually, while United Trust Bank sits between 5% and 12.5% annually. Momenta Finance, offering bridging loans usable for development, publishes from 8% to 24% annually. Barclays quotes 8.5% to 14.9% annually on its business lending.
On a £700,000 facility, the difference between 1% per month and 1.5% per month equates to roughly £3,500 in additional monthly interest. Developers should always confirm whether the quoted rate is monthly or annual before comparing offers.
Loan terms and exit strategies for £700,000 development projects
Most specialist development lenders structure facilities around the project timeline. One Stop Business Finance and Inhale Capital both offer terms from 3 to 18 months, which suits a typical ground-up or heavy refurbishment project at the £700,000 scale. MT Finance offers terms from 1 month to 2 years, giving slightly more flexibility.
Shire Leasing and Shireassetfinance extend terms up to 6 years, which may suit phased developments or projects with longer planning horizons. United Trust Bank offers up to 5 years on its bridging products, while Barclays stretches to 25 years for longer-term commercial property lending.
Lenders will expect a credible exit strategy before approving a £700,000 facility. The two most common exits are selling the completed development and refinancing onto a term loan or buy-to-let mortgage. If refinancing, the lender will want evidence that the completed property will meet the criteria of the refinance lender. If selling, a clear marketing timeline and comparable sales evidence will strengthen the application.
What developers should verify when comparing £700,000 development lenders
Beyond rates and LTV, several factors matter at the £700,000 level. Personal guarantees are standard across development finance. One Stop Business Finance, Inhale Capital, Brightstar, Momenta Finance, and Nucleus Commercial Finance all require them. A personal guarantee means the lender can pursue your personal assets if the development defaults, so understanding the scope and any limitations is essential.
Loan amount caps also deserve attention. Most lenders on this list comfortably cover £700,000. However, Shire Leasing and Shireassetfinance cap at £750,000, leaving only £50,000 of headroom. If build costs overrun, the developer would need to find additional funding elsewhere.
Eligibility varies. Momenta Finance requires a minimum turnover of £350,000 and 2 years of trading history. Nucleus Commercial Finance asks for £50,000 turnover and 4 months of trading. One Stop Business Finance has no minimum turnover or trading age requirement, which may suit newer development vehicles. Developers should also confirm whether the lender offers staged drawdowns against build progress, as this affects cash flow management during the project.
