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Top 10 Development Finance Lenders for £800,000 Property Projects in 2026
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Top £800,000 Development Finance Lenders Compared
| Rank | Lender | Best for | Published loan range | Loan rate |
|---|---|---|---|---|
| 1 | One Stop Business Finance | Mid-size residential and mixed-use property development projects | £100,000 to £3,000,000 | interest 1.6% to 3% monthly |
| 2 | Nucleus Commercial Finance | Developers needing bridging as part of a wider development plan | £3,000 to £2,000,000 | mixed 1.15% to 17.5% monthly |
| 3 | Momenta Finance | Established developers with strong turnover seeking bridging | £50,000 to £2,000,000 | interest 8% to 24% annually |
| 4 | Inhale Capital | Property developers seeking low monthly rates for projects | £0 to £2,000,000 | interest 1.05% to 1.3% monthly |
| 5 | Brightstar | Property developers and investors needing fast project bridging | From £50,000 | interest 5% to 12% annually |
| 6 | Barclays | Larger developers seeking bank-backed development finance lines | £1,000 to £25,000,000 | interest 8.5% to 14.9% annually |
| 7 | United Trust Bank | Large-scale development projects needing substantial bridging facilities | £100,000 to £35,000,000 | interest 5% to 12.5% annually |
| 8 | Ultimate Finance | Well-established developers with strong financials seeking bridging | £10,000 to £10,000,000 | interest 6.5% to 14% annually |
| 9 | OakNorth | Larger schemes from £1m; included for bank comparison | From £1,000,000 | interest 5.5% to 12.5% annually |
| 10 | MT Finance | Developers seeking competitive monthly rates on bridging facilities | £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. It suits property developers who need to fund construction, refurbishment, or conversion projects without tying up all their own cash upfront. Lenders typically advance funds against land value and projected gross development value, making it a practical choice for schemes with clear end-sale or refinance exits. At the £800,000 level, this type of funding commonly supports small to mid-sized residential or mixed-use developments.
Comparing development finance lenders goes well beyond the headline interest rate. Drawdown terms and stage-payment flexibility can make or break a project’s cash flow. Gross development value assessments, loan-to-cost ratios, and monitoring fees vary significantly between funders and directly affect net funding available. Exit strategy requirements matter too — some lenders insist on a presale threshold while others accept refinance or retention routes. At the £800,000 mark, the interest type — monthly rolled-up versus annual serviced — can shift total borrowing costs considerably.
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 is this lender's core product, not an add-on. One Stop Business Finance structures facilities around build-stage drawdowns, so interest costs track actual spend rather than the full commitment from day one. For an £800,000 project, that means you are not servicing debt on unused capital. Expect monthly rates between 1.6% and 3% on a secured basis.
Best next step: Speak to us about staged terms
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Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Core development finance expertise
- Staged drawdowns control interest cost
- Loans to £3 million for larger phases
Need to know
- Monthly rates from 1.6% to 3%
- Security against the property required
- Funding typically within 5 working days
Expert take
A hands-on development funder that underwrites the project, not just the asset. Staged releases matched to build milestones keep interest costs efficient across an £800,000 project.
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: Funding speed sets this lender apart. Nucleus Commercial Finance can turn around a bridging facility in as little as 24 hours, which matters when a site purchase or auction deadline cannot wait. Rates start from 1.15% monthly on facilities up to £2 million. The trade-off is that bridging terms are shorter, so a clear exit strategy is essential for any development project.
Best next step: Check bridging terms for development use
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Decision and funding within 24 hours
- Facilities available up to £2 million
- Rates from 1.15% monthly
Need to know
- Bridging terms shorter than development loans
- Clear exit route required at outset
- Mixed rate structure up to 17.5% monthly
Expert take
A speed-first lender built for time-sensitive property deals. The 24-hour turnaround works for developers securing an £800,000 site quickly, with the understanding that bridging terms demand a firm exit plan from day one.
Momenta Finance
Published loan range£50,000 to £2,000,000
Rate typeinterest 8% to 24% annually
Overview: Annual interest pricing gives developers clearer cost forecasting than monthly-rate structures, and Momenta Finance quotes between 8% and 24% per year on bridging loans from £50,000 to £2 million. Funding can land within 48 hours, which keeps pace with competitive site purchases. The annual rate model suits projects where a refinance or sale exit is already mapped out.
Best next step: Compare annual-rate bridging options
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Annual interest quoted transparently upfront
- Bridging loans from £50,000 to £2 million
- Funding available within 48 hours
Need to know
- Annual rates from 8% up to 24%
- Secured against property assets only
- Short-term bridge, not development finance
Expert take
A bridging lender that prices annually rather than monthly, which gives developers cost clarity. The 48-hour timeline and clean annual rate help planning on an £800,000 project while longer-term finance is arranged.
Inhale Capital
Published loan range£0 to £2,000,000
Rate typeinterest 1.05% to 1.3% monthly
Overview: Monthly rates as low as 1.05% make Inhale Capital one of the sharper-priced options in the short-term property space. Facilities reach £2 million, and decisions come within 24 hours. The lender focuses on property-backed deals, so an £800,000 development project with tangible security fits its model. Expect a fast process, though the short-term structure requires a viable exit.
Best next step: Explore low-rate property-backed terms
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Monthly rates from just 1.05%
- Same-day decisions, 24-hour funding
- Facilities available up to £2 million
Need to know
- Short-term property-backed lending only
- Exit strategy must be clearly defined
- Valuation and legal costs apply
Expert take
A competitively priced property lender that moves at speed. The low monthly rate starting at 1.05% and 24-hour turnaround make it a strong contender for an £800,000 development purchase where cost and pace both matter.
Brightstar
Published loan rangeFrom £50,000
Rate typeinterest 5% to 12% annually
Overview: Starting from just £50,000, Brightstar's bridging and development facilities scale well to £800,000 and beyond. Annual rates between 5% and 12% keep costs predictable, and decisions land within 24 hours. The lender's property-backed model suits developers who hold existing assets and need bridging capital to unlock a new site or fund the next phase of works.
Best next step: See if Brightstar fits your project
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Annual rates from 5% to 12%
- Decisions in as little as 24 hours
- Facilities from £50,000 upwards
Need to know
- Published range starts at £50,000
- Property security always required
- Annual rate model, not monthly
Expert take
A flexible property lender whose low entry point belies its appetite for larger deals. Annual rates and rapid decisions support developers using an £800,000 bridge for land or refurbishment while holding existing property as security.
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 lending ceiling of £25 million brings institutional-grade backing to development projects. Barclays quotes annual rates from 8.5% to 14.9% and can fund within 24 hours on straightforward cases. For an £800,000 construction or refurbishment, the bank's broader product suite means refinancing onto a term loan post-completion is a natural next step.
Best next step: Compare bank-backed development options
More info
Company stats
Loan range
Rates and debtor rules
Benefits
- Institutional backing and brand security
- Loan range spans £1,000 to £25 million
- Post-completion term-loan pathway available
Need to know
- Bank underwriting can be more demanding
- Strong trading history may be required
- Annual rates from 8.5% to 14.9%
Expert take
A mainstream bank that can fund and then graduate a development loan into long-term finance. For an £800,000 project, dealing with one institution from build through to long-term lending is the central appeal, backed by thorough bank-grade underwriting.
United Trust Bank
Published loan range£100,000 to £35,000,000
Rate typeinterest 5% to 12.5% annually
Overview: United Trust Bank bridges from £100,000 to £35 million, giving it the balance-sheet depth to handle projects of nearly any scale. Annual rates between 5% and 12.5% are competitive for an £800,000 development bridge, and funding can complete within 48 hours. The lender's bridging product suits developers who need a committed facility while planning permission or refinancing is finalised.
Best next step: Review United Trust Bank's bridge terms
More info
Company stats
Loan range
Rates and debtor rules
Benefits
- Massive lending ceiling of £35 million
- Annual rates from 5% to 12.5%
- Funding completion within 48 hours
Need to know
- Minimum facility size is £100,000
- Bridging product, not pure development finance
- Exit plan scrutiny is standard practice
Expert take
A balance-sheet lender with serious depth, capable of funding from six-figure refurbs to multi-million-pound schemes. For an £800,000 development, the competitive annual rates and 48-hour timeline make it a credible bridge-to-development or pre-planning solution.
Source:https://www.utbank.co.uk/
Ultimate Finance
Published loan range£10,000 to £10,000,000
Rate typeinterest 6.5% to 14% annually
Overview: Ultimate Finance brings more than bridging to the table. Alongside property-backed facilities from £10,000 to £10 million, the lender offers invoice finance and asset funding, which can be useful for construction firms managing subcontractor payments or purchasing plant alongside a development project. Annual rates run from 6.5% to 14%, and bridging decisions come within 24 hours.
Best next step: Explore combined funding solutions
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Bridging plus invoice and asset finance
- Annual rates from 6.5% to 14%
- Facilities from £10,000 to £10 million
Need to know
- Multiple products but bridging is short-term
- Development-specific terms not standard
- Property security required for bridging
Expert take
A multi-product lender whose invoice and asset lines can supplement a bridge. For construction firms on an £800,000 development, funding plant or subcontractor invoices under one relationship is a practical advantage.
OakNorth
Published loan rangeFrom £1,000,000
Rate typeinterest 5.5% to 12.5% annually
Overview: OakNorth names property development finance as its product, making it one of the few lenders on this list purpose-built for the task. Annual rates range from 5.5% to 12.5%, and funding typically completes within two weeks. The published minimum starts at £1 million, so an £800,000 project falls just below that threshold; developers should confirm appetite before proceeding.
Best next step: Check minimum-loan threshold for your project
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Dedicated property development finance product
- Annual rates from 5.5% to 12.5%
- Two-week funding timeline typical
Need to know
- Published minimum loan is £1 million
- Two-week turnaround, not same-day
- Bank-style underwriting applies throughout
Expert take
A rare bank that leads with development finance rather than treating it as a sideline. For developers near the £1 million threshold, OakNorth's specialist underwriting and competitive annual rates are worth discussing.
MT Finance
Published loan range£50,000 to £10,000,000
Rate typeinterest 0.89% to 1.05% monthly
Overview: Among bridging lenders serving the £50,000-to-£10-million bracket, MT Finance stands out on price. Monthly rates begin at 0.89% and cap at 1.05%, with decisions returned within 24 hours. Property developers funding an £800,000 purchase or refurbishment get both cost efficiency and speed, though the bridging structure demands a clear exit.
Best next step: Compare MT Finance's low monthly rates
More info
Company stats
Loan range
Rates and debtor rules
Benefits
- Monthly rates from just 0.89%
- Facilities available up to £10 million
- Decisions delivered within 24 hours
Need to know
- Monthly rates can rise to 1.05%
- Short-term property-backed bridging only
- Exit valuation and legal fees apply
Expert take
A rate-competitive bridging lender that can move quickly on larger deals. The 0.89% monthly starting rate and £10 million ceiling make it a serious option for developers who need an £800,000 facility at the lowest possible cost.
Source:https://www.mt-finance.com/
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How LTV ratios affect £800,000 development finance for construction projects
Most development lenders cap loan-to-value at around 75% of gross development value or total project cost. Inhale Capital and United Trust Bank both publish maximum LTVs of 75%. One Stop Business Finance also sets its limit at 75%, while MT Finance offers up to 70%. Brightstar stands out with an LTV of up to 100% in certain cases. For an £800,000 facility, the LTV cap dictates how much of the total project cost the lender will cover and how much equity or cash you must contribute. If your project has a GDV of £1.2m, a 75% LTV facility of £800,000 is workable. But if the GDV is lower, you may need to bridge the gap with additional capital. Lenders also assess build costs, land value and your track record as a developer when setting the final LTV. Confirm the valuation basis early in the process.
Comparing interest rates on £800,000 property development loans
Development finance rates for £800,000 facilities sit across two structures. The table below shows how selected lenders compare.
| Lender | Rate range | Structure |
|---|---|---|
| MT Finance | 0.89% to 1.05% per month | Monthly interest |
| Inhale Capital | 1.05% to 1.3% per month | Monthly interest |
| One Stop Business Finance | 1.6% to 3% per month | Monthly interest |
| United Trust Bank | 5% to 12.5% per year | Annual interest |
| Brightstar | 5% to 12% per year | Annual interest |
On an £800,000 facility the difference between monthly and annual rate structures can significantly affect total cost. Always convert to a comparable annual figure before comparing quotes. The rate you secure depends on your experience, the project location and the loan-to-value ratio offered.
Understanding drawdown stages in construction development finance
Development finance for construction projects is released in stages rather than as a single lump sum. This protects the lender and matches funding to build progress. Typical drawdown stages include land acquisition, groundworks, frame completion, watertight stage, first fix and practical completion. At each stage a quantity surveyor or monitoring surveyor inspects the site before the lender releases the next tranche. With an £800,000 facility you might draw £200,000 for land and initial works, then further sums as each phase completes. Interest is usually charged only on drawn funds, not the full facility, which helps manage costs during the build. Factor the drawdown schedule into your project timeline and cash flow forecast. Delays between stages can slow access to the next tranche, so build in contingency.
Exit strategies for property developers using £800,000 development finance
Most development lenders expect a clear exit strategy before approving an £800,000 facility. The most common exit is selling the completed development and repaying the loan from sale proceeds. Some developers refinance onto a buy-to-let mortgage if they intend to hold and rent the finished units. Bridging finance can also serve as a short-term exit if the development completes but sale or refinance takes longer than planned. Lenders like United Trust Bank, Barclays and Ultimate Finance all offer facilities with terms long enough to accommodate refinancing exits. Your exit strategy should be realistic and backed by comparable sales evidence or refinancing terms in principle. Lenders will stress-test your exit against a market downturn. A weak exit is one of the most common reasons large development loans are declined, so prepare it carefully before you apply.
