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Top Development Finance Lenders for £950,000 Projects in 2026
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Top lenders for £950,000 development finance
| Rank | Lender | Best for | Published loan range | Loan rate |
|---|---|---|---|---|
| 1 | One Stop Business Finance | Mid-to-large property developments requiring staged funding draws | £100,000 to £3,000,000 | interest 1.6% to 3% monthly |
| 2 | Inhale Capital | Property developers seeking fast, competitive monthly-rate funding | £0 to £2,000,000 | interest 1.05% to 1.3% monthly |
| 3 | Brightstar | Developers comparing annual-rate options for land and build projects | From £50,000 | interest 5% to 12% annually |
| 4 | Momenta Finance | Bridging route for development site acquisition or short-term refinance | £50,000 to £2,000,000 | interest 8% to 24% annually |
| 5 | Nucleus Commercial Finance | Fast short-term bridging for development purchase or refinance needs | £3,000 to £2,000,000 | mixed 1.15% to 17.5% monthly |
| 6 | mcl finance | Included for comparison; smaller bridging loans up to £100,000 | £5,000 to £100,000 | interest 2.75% to 4% monthly |
| 7 | United Trust Bank | Established developers considering bank-led bridging for larger schemes | £100,000 to £35,000,000 | interest 5% to 12.5% annually |
| 8 | OakNorth | Bank development funding for experienced developers at £1 million-plus | From £1,000,000 | interest 5.5% to 12.5% annually |
| 9 | Barclays | Bank comparison option for well-established development businesses | £1,000 to £25,000,000 | interest 8.5% to 14.9% annually |
| 10 | MT Finance | Experienced developers seeking competitive monthly-rate property funding | £50,000 to £10,000,000 | interest 0.89% to 1.05% monthly |
Development finance is a staged funding facility that releases capital in phases as construction milestones are completed, rather than as a single lump sum. For property developers undertaking ground-up builds, conversions or major refurbishments, this structure aligns funding drawdowns with project progress and helps manage cashflow across the build cycle. At the £950,000 level, a facility of this size typically supports a mid-scale residential or mixed-use scheme where land acquisition and build costs need to be funded in sequence.
Comparing development finance lenders means looking well beyond the headline rate. Loan-to-cost and loan-to-GDV ratios determine how much of the project a lender will fund, while drawdown terms affect when you can access each tranche. The exit strategy is equally critical — lenders want a clear route to repayment, whether through sale of completed units or refinancing onto a commercial mortgage. Some development lenders specialise in particular project types, so track record with similar schemes matters.
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 rates from 1.6% keep servicing costs predictable when funding a £950,000 development. One Stop Business Finance lends against the site and the planned build, with facilities running from £100,000 to £3,000,000. The five-day timeline means you are not left waiting once terms are agreed. Expect to provide a clear exit strategy and suitable security.
Best next step: Check your rate against market alternatives.
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Monthly rates from 1.6%
- Funds within 5 working days
- Lends up to £3,000,000
Need to know
- Requires a clear exit strategy
- Personal guarantee may apply
- Legal and valuation costs payable
Expert take
A secured development lender comfortable with mid-market projects. For a £950,000 development, the rate structure and five-day funding timeline work in your favour. The underwriting leans heavily on the project's viability and your exit plan.
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 inside 24 hours makes Inhale Capital a practical choice when a £950,000 development site cannot wait. They lend up to £2,000,000 against property, with monthly rates between 1.05% and 1.3%. The speed comes from a streamlined valuation and legal process. Be ready for the higher fees that short-term property-backed facilities carry.
Best next step: Compare short-term rates before committing.
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Funding in 24 hours
- Loans up to £2,000,000
- Monthly rates from 1.05%
Need to know
- Higher fees than term lending
- Valuation required on security
- Exit-risk assessment applies
Expert take
A fast-moving short-term funder built for property-backed deals. Speed is the defining advantage here, and for a £950,000 development that needs immediate commitment, that timeline is hard to beat.
Brightstar
Published loan rangeFrom £50,000
Rate typeinterest 5% to 12% annually
Overview: A low entry point from £50,000 and annual rates between 5% and 12% give Brightstar flexibility for development projects of varying scale. Funding can land within 24 hours on property-backed applications. The annual interest structure suits borrowers who prefer predictable costs over monthly rate calculations. Expect property security and a clear exit strategy to be assessed.
Best next step: See if annual pricing lowers your total cost.
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Annual rates from 5%
- Funding within 24 hours
- Minimum loan £50,000
Need to know
- Property security required
- Valuation costs may apply
- Exit strategy is assessed
Expert take
A property-backed lender that prices annually rather than monthly, which can simplify cost forecasting on a £950,000 development. The 24-hour funding capability and low minimum entry make them versatile across project sizes.
Momenta Finance
Published loan range£50,000 to £2,000,000
Rate typeinterest 8% to 24% annually
Overview: Momenta Finance structures bridging facilities from £50,000 to £2,000,000, with annual rates spanning 8% to 24%. Funding typically completes within 48 hours. For a £950,000 development, the term-loan framework can provide the repayment certainty that short-term monthly facilities lack. Expect affordability checks and a personal guarantee requirement on larger advances.
Best next step: Check if term structure suits your timeline.
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Loans up to £2,000,000
- Funding within 48 hours
- Term-loan repayment option
Need to know
- Personal guarantee often required
- Affordability evidence needed
- Legal and valuation costs apply
Expert take
A secured lender blending bridging speed with term-loan structure. For a £950,000 development, the option to fix repayment terms rather than roll monthly interest can reduce uncertainty through the build phase.
Nucleus Commercial Finance
Published loan range£3,000 to £2,000,000
Rate typemixed 1.15% to 17.5% monthly
Overview: Nucleus Commercial Finance works across a wide band of property-backed deals, lending from £3,000 to £2,000,000 with a mix of monthly rates between 1.15% and 17.5%. Funding decisions come within 24 hours. For a £950,000 development, their bridging product can cover land acquisition or initial build costs while longer-term finance is arranged. Rate variance means credit profile matters.
Best next step: Enquire about blended rate options.
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Decisions within 24 hours
- Secured lending to £2m
- Broad rate band available
Need to know
- Rate depends on credit profile
- Security and valuation needed
- Personal guarantee may apply
Expert take
A lender with a wide product band that can accommodate property development bridging. The rate a borrower sees on a £950,000 facility will reflect the strength of the security and the exit plan, so preparation pays off here.
mcl finance
Published loan range£5,000 to £100,000
Rate typeinterest 2.75% to 4% monthly
Overview: mcl finance delivers bridging loans within four hours, making them one of the fastest respondents for smaller funding needs. Their secured facilities top out at £100,000 with monthly rates from 2.75% to 4%. While this does not cover a full £950,000 development, the speed and certainty can fund immediate site-holding costs or pre-construction expenses while the main facility is finalised.
Best next step: Useful for smaller bridging alongside main funding.
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Funding in 4 hours
- Monthly rates from 2.75%
- Secured up to £100,000
Need to know
- Maximum loan is £100,000
- Does not cover full development
- Personal guarantee may apply
Expert take
A lightning-fast bridging lender whose £100,000 cap limits its role in a £950,000 development. Used alongside a main facility, it can cover holding deposits, planning costs, or urgent site expenses that cannot wait for the primary lender's timeline.
Source:https://www.mclfinance.com/
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 £35,000,000, giving serious headroom for large-scale developments. Annual rates run from 5% to 12.5%, and funding typically lands within 48 hours. For a £950,000 project, the bank's experience with multi-million-pound facilities means the underwriting process is built around development realities. Asset-backed and property-bridging structures are both available.
Best next step: Explore bank-led bridging for larger projects.
More info
Company stats
Loan range
Rates and debtor rules
Benefits
- Lends up to £35,000,000
- Annual rates from 5%
- Funding within 48 hours
Need to know
- Bank underwriting standards apply
- Asset eligibility is assessed
- Valuation and legal costs payable
Expert take
A bank-backed bridging lender with deep capacity. The £35m ceiling signals institutional muscle, and a £950,000 development benefits from underwriting processes designed for far larger sums, which can mean more thorough but predictable terms.
Source:https://www.utbank.co.uk/
OakNorth
Published loan rangeFrom £1,000,000
Rate typeinterest 5.5% to 12.5% annually
Overview: OakNorth offers dedicated property development finance with annual rates from 5.5% to 12.5%, though their minimum facility starts at £1,000,000. For a development at or near £950,000, the numbers need to stack up tightly or the scope may need a modest uplift to meet the threshold. Funding takes around two weeks under bank-style underwriting that understands construction drawdowns and phased release.
Best next step: Confirm if your project meets the £1m minimum.
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Development-specific product
- Annual rates from 5.5%
- Bank-backed funding security
Need to know
- Minimum facility is £1,000,000
- Two-week funding timeline
- Full bank underwriting applies
Expert take
A genuine development finance lender rather than a generalist. The £1m minimum sits just above a £950,000 requirement, so borrowers need to check eligibility carefully. The phased drawdown structure is a genuine advantage for construction-heavy projects.
Barclays
Published loan range£1,000 to £25,000,000
Rate typeinterest 8.5% to 14.9% annually
Overview: Barclays can fund property-backed facilities from £1,000 to £25,000,000, with annual rates between 8.5% and 14.9%. The bank's asset finance and revolving credit options mean the funding structure can be shaped around the project rather than forced into a single product. For a £950,000 development, expect full bank underwriting, trading history checks, and a personal guarantee.
Best next step: Speak to a broker about Barclays' development terms.
More info
Company stats
Loan range
Rates and debtor rules
Benefits
- Lends up to £25,000,000
- Multiple product structures
- Annual interest from 8.5%
Need to know
- Strict bank underwriting applies
- Trading history is scrutinised
- Personal guarantee often required
Expert take
A high-street bank with the balance-sheet depth to support development lending at scale. The product flexibility is the standout feature for a £950,000 project, allowing the facility to be shaped as bridging, term, or revolving credit depending on the build timeline.
MT Finance
Published loan range£50,000 to £10,000,000
Rate typeinterest 0.89% to 1.05% monthly
Overview: Monthly rates from 0.89% to 1.05% position MT Finance among the more cost-competitive short-term property lenders. Loans run from £50,000 to £10,000,000, with funding typically available within 24 hours. For a £950,000 development, the low monthly cost keeps the interest burden manageable during the build. Property valuations and exit assessments are part of the underwriting process.
Best next step: Lock in a rate before market conditions shift.
More info
Company stats
Loan range
Rates and debtor rules
Benefits
- Monthly rates from 0.89%
- Funding within 24 hours
- Loans up to £10,000,000
Need to know
- Property valuation required
- Exit strategy is assessed
- Short-term facility only
Expert take
A rate-competitive short-term funder with deep lending capacity. The sub-1% monthly pricing is unusually keen for the bridging market, and a £950,000 development borrower stands to save meaningfully on interest compared to standard bridging rates.
Source:https://www.mt-finance.com/
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How development lenders underwrite a £950,000 property project
Lenders funding projects around £950,000 assess the scheme in detail, not just the borrower. They review gross development value, construction costs, planning status, and the developer’s track record on similar-sized builds.
The professional team matters too. Lenders look at the architect, quantity surveyor, and main contractor. A clear build programme with realistic costings strengthens an application. Funds are typically released in stages against site progress, with each drawdown signed off by a monitoring surveyor.
At this scale, you should expect to provide a detailed appraisal covering land cost, build cost, contingency, professional fees, and projected profit margin. Lenders will stress-test these numbers against market slowdowns or cost overruns before they commit.
Loan-to-value ratios for £950,000 development finance
LTV limits vary meaningfully between development lenders, and at £950,000 the difference affects how much equity you need to commit.
| Lender | Maximum LTV |
|---|---|
| Brightstar | 100% |
| One Stop Business Finance | 75% |
| Inhale Capital | 75% |
| OakNorth | 75% |
| MT Finance | 70% |
Most specialist lenders cap LTV at 75% of GDV, so a £950,000 facility typically needs a completed scheme value comfortably above £1.27 million. Brightstar publishes up to 100% LTV in certain circumstances, which can reduce the upfront cash equity required. Actual LTV offered depends on location, scheme type, and experience. A site with full planning in a strong postcode will attract higher leverage than a speculative build without consent.
Exit strategies expected for £950,000 development finance
At this scale, development lenders require a clearly documented exit before releasing funds. The two most common routes are selling the completed units and refinancing onto a longer-term commercial or buy-to-let mortgage.
Development terms are short. One Stop Business Finance and Inhale Capital both publish facilities from 3 to 18 months. MT Finance offers terms from 1 month to 2 years. You need a realistic construction timeline plus a marketing or refinance window built into the plan.
Lenders will test your exit assumptions. If selling, they expect comparable evidence backing the projected values. If refinancing, they want comfort that a term lender will step in at practical completion. A conservative, well-documented exit strategy is essential to securing approval at £950,000.
Comparing rate structures on £950,000 in development borrowing
At £950,000, the difference between rate structures has a material impact on total cost. Monthly-rate lenders include MT Finance at 0.89% to 1.05% per month, Inhale Capital at 1.05% to 1.3% per month, and One Stop Business Finance at 1.6% to 3% per month. Annual-rate lenders include Brightstar at 5% to 12% per year, OakNorth at 5.5% to 12.5% per year, and United Trust Bank at 5% to 12.5% per year.
Monthly rates are standard in short-term development finance. For comparison, 0.89% per month compounds to roughly 11% per year; 1.05% per month compounds to roughly 13% per year. Beyond the headline rate, development facilities carry arrangement fees, monitoring surveyor costs, legal fees, and exit fees. Compare total borrowing cost across the full term, not just the advertised rate.
