Top 10 Construction Finance Providers in the UK 2026
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Top 10 Construction Finance Providers in the UK Compared
| Rank | Lender | Best for | Published loan range | Loan rate |
|---|---|---|---|---|
| 1 | Brightstar | Property developers needing fast construction funding from £50,000 | From £50,000 | interest 5% to 12% annually |
| 2 | One Stop Business Finance | Mid-sized construction projects with flexible monthly repayment structures | £100,000 to £3,000,000 | interest 1.6% to 3% monthly |
| 3 | Inhale Capital | Developers seeking competitive monthly rates on projects up to £2 million | £0 to £2,000,000 | interest 1.05% to 1.3% monthly |
| 4 | Together Money | Large-scale ground-up development projects requiring substantial capital | £50,000 to £25,000,000 | interest 0.55% to 1.5% monthly |
| 5 | Shire Leasing | Smaller construction and renovation projects starting from £5,000 | £5,000 to £750,000 | interest 4% to 11% monthly |
| 6 | Shireassetfinance | Builders needing rapid construction finance for smaller development projects | £5,000 to £750,000 | interest 4.5% to 12% monthly |
| 7 | United Trust Bank | Major development projects needing high-value funding up to £35 million | £100,000 to £35,000,000 | interest 5% to 12.5% annually |
| 8 | Barclays | Established construction firms seeking bank-backed development funding | £1,000 to £25,000,000 | interest 8.5% to 14.9% annually |
| 9 | Ultimate Finance | Property developers using bridging finance during construction project phases | £10,000 to £10,000,000 | interest 6.5% to 14% annually |
| 10 | MT Finance | Experienced developers needing competitive rates on mid to large builds | £50,000 to £10,000,000 | interest 0.89% to 1.05% monthly |
Development finance is a short to medium term funding solution designed specifically for property developers and construction companies undertaking building projects. Lenders release funds in stages as each construction phase completes, rather than as a single lump sum. This drawdown structure helps developers manage cash flow across ground-up builds, conversions, renovations and structural works. For projects around half a million pounds, this staged model ensures capital is available precisely when each phase of work needs to be paid for.
Choosing the best construction finance provider involves more than comparing headline interest rates. Developers should assess the loan-to-cost ratio each lender offers, as this determines how much of the total project cost will be funded. The drawdown process and any associated fees can significantly impact cash flow during the build. Equally important is the lender's experience with your project type, whether that is ground-up development, heavy refurbishment or permitted development conversions.
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.
Brightstar
Published loan rangeFrom £50,000
Rate typeinterest 5% to 12% annually
Overview: Funding decisions within 24 hours make Brightstar a practical choice for developers who have found a site and need to move quickly. It lends from £50,000 for ground-up builds, conversions and heavy refurbishments across the UK. Annual interest rates start from 5%, though pricing tightens for higher-risk schemes or borrowers with less experience.
Best next step: Fast decisions for time-sensitive development sites.
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Decisions within 24 hours
- From £50,000 for small-to-mid projects
- Covers ground-up builds and conversions
Need to know
- Annual interest from 5% to 12%
- Pricing rises on higher-risk schemes
- Requires property security and valuation
Expert take
A specialist property finance house that moves at bridging speed. Developers with a clear exit strategy and decent site credentials will find the process straightforward. Best suited to smaller UK projects where a quick yes matters more than the lowest rate.
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, One Stop Business Finance covers the middle ground of UK construction funding, from small residential conversions through to multi-unit new builds. Monthly interest runs from 1.6% to 3%, and funds typically land within five working days. Developers should expect affordability checks and a personal guarantee.
Best next step: Development finance from £100k to £3m.
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Loans from £100,000 to £3,000,000
- Funds available in five working days
- Covers conversions and new builds
Need to know
- Monthly interest from 1.6% to 3%
- Personal guarantee usually required
- Affordability checks apply
Expert take
A flexible SME funder that understands construction cash-flow cycles. The revolving credit capability means developers can draw, repay and redraw as projects progress. Works well for mid-sized builders who value structured facility management over rock-bottom pricing.
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: Monthly rates starting at 1.05% put Inhale Capital among the more competitively priced short-term lenders for UK construction projects. It funds up to £2,000,000 and can turn decisions around in 24 hours, useful for developers buying at auction or securing land against tight deadlines. Property-backed only, so unsecured construction costs will not qualify.
Best next step: Competitive rates from 1.05% per month.
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Monthly rates from 1.05%
- Decisions within 24 hours
- Up to £2,000,000 for property projects
Need to know
- Property security is mandatory
- Unsecured costs not covered
- Valuation and legal costs apply
Expert take
A short-term property lender built for speed and competitive pricing. Developers who can secure the loan against land or existing property will benefit most. Strong fit for auction purchases and quick-turnaround refurbishment projects across the UK.
Together Money
Published loan range£50,000 to £25,000,000
Rate typeinterest 0.55% to 1.5% monthly
Overview: With a lending ceiling of £25,000,000, Together Money can fund large-scale construction projects that sit beyond the reach of most specialist development lenders. Monthly rates start as low as 0.55% and decisions come within 24 hours. The minimum entry point of £50,000 also keeps smaller builders in the conversation, though larger deals will face detailed exit scrutiny.
Best next step: Development finance up to £25,000,000.
More info
Company stats
Loan range
Rates and debtor rules
Benefits
- Lends up to £25,000,000
- Monthly rates from 0.55%
- Decisions in 24 hours
Need to know
- Exit strategy scrutiny on large deals
- Valuation fees apply
- Not confirmed: minimum term details
Expert take
A heavyweight property lender with the balance sheet to back major UK developments. Builders tackling multi-unit schemes or commercial conversions will find the scale they need here. The low headline rate is attractive, but underwriting is thorough.
Source:https://togethermoney.com/
Shire Leasing
Published loan range£5,000 to £750,000
Rate typeinterest 4% to 11% monthly
Overview: Shire Leasing funds smaller construction projects from £5,000 to £750,000, making it a viable route for builders and developers whose requirements fall below typical development finance minimums. Property Development Finance is its named product, and decisions can arrive within 24 hours. Monthly rates from 4% reflect the higher-risk profile of smaller-scale lending.
Best next step: Development finance from as little as £5,000.
More info
Company stats
Loan range
Rates and debtor rules
Benefits
- Funding from £5,000 to £750,000
- Decisions within 24 hours
- Named property development product
Need to know
- Monthly rates from 4% to 11%
- Higher cost reflects smaller loans
- Trading history may be required
Expert take
A multi-product funder that carves out space for sub-£100,000 construction loans. Smaller builders and sole traders doing single conversions or extensions will find the entry point accessible. Pricing is steep by design, so this is about access, not cost.
Shireassetfinance
Published loan range£5,000 to £750,000
Rate typeinterest 4.5% to 12% monthly
Overview: Decisions in as little as four hours make Shireassetfinance one of the quickest routes to construction funding for smaller UK projects. Its Property Development Finance product covers £5,000 to £750,000, a range that suits single-unit conversions, extensions and light refurbishments. Monthly rates start at 4.5%, so speed comes at a premium.
Best next step: Decisions in as little as four hours.
More info
Company stats
Loan range
Rates and debtor rules
Benefits
- Decisions in four hours
- Loans from £5,000 to £750,000
- Suits smaller construction projects
Need to know
- Monthly rates from 4.5% to 12%
- Speed carries a pricing premium
- Security and valuation required
Expert take
A rapid-response funder for builders who cannot afford to wait. The four-hour decision window sets it apart in UK construction finance. Best for small, straightforward projects where securing the site or materials quickly is the priority.
United Trust Bank
Published loan range£100,000 to £35,000,000
Rate typeinterest 5% to 12.5% annually
Overview: United Trust Bank writes development facilities up to £35,000,000, putting large-scale ground-up builds and major conversions within reach. Its Property Development Finance product starts at £100,000, with annual rates from 5%. Funding decisions take around 48 hours, which is reasonable for the deal size. Developers should expect full valuation and asset eligibility checks.
Best next step: Development finance up to £35,000,000.
More info
Company stats
Loan range
Rates and debtor rules
Benefits
- Up to £35,000,000 for large projects
- Annual rates from 5%
- Named property development product
Need to know
- Decisions take around 48 hours
- Full valuation and asset checks
- Not confirmed: minimum term
Expert take
A bank-backed specialist with the firepower for serious construction plays. Property developers running multi-phase schemes or commercial conversions will find the scale and product structure a natural fit. Annual pricing keeps cost forecasting straightforward.
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 high-street credibility to construction funding, with facilities from £1,000 to £25,000,000. Decisions within 24 hours are possible, though bank underwriting tends to be more thorough than alternative lenders. Annual rates from 8.5% reflect mainstream pricing. Property developers with strong trading histories and clean affordability profiles are the natural fit here.
Best next step: Construction funding from a high-street bank.
More info
Company stats
Loan range
Rates and debtor rules
Benefits
- High-street lender credibility
- Loans from £1,000 to £25,000,000
- Decisions within 24 hours possible
Need to know
- Annual rates from 8.5% to 14.9%
- Bank underwriting can be stricter
- Strong trading history expected
Expert take
A mainstream bank with the product breadth to cover everything from small builder loans to major development facilities. Established construction firms with solid accounts will find the most traction and a relationship-led approach that rewards track record.
Ultimate Finance
Published loan range£10,000 to £10,000,000
Rate typeinterest 6.5% to 14% annually
Overview: For developers bridging gaps between project phases, Ultimate Finance writes short-term facilities from £10,000 to £10,000,000. Annual rates start at 6.5% and decisions typically come within 24 hours. The bridging structure suits land acquisition, pre-development costs and cash-flow gaps during build programmes. It is not a term development product, so exit planning matters.
Best next step: Bridging finance from £10k to £10m.
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Bridging from £10,000 to £10,000,000
- Annual rates from 6.5%
- 24-hour decision turnaround
Need to know
- Bridging, not term development finance
- Exit strategy must be clear
- Valuation and legal costs apply
Expert take
A multi-product funder whose bridging arm works well for developers between project stages. Land purchases, pre-construction costs and timing gaps are where this fits best. A useful complement for UK builders managing phased programmes.
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% make MT Finance one of the more cost-effective short-term property lenders for UK construction projects. It lends £50,000 to £10,000,000 with decisions in 24 hours. The rate spread is tight, 0.89% to 1.05% monthly, giving developers clearer cost visibility. Property-backed only, so a site or existing asset must stand as security.
Best next step: Low monthly rates from 0.89%.
More info
Company stats
Loan range
Rates and debtor rules
Benefits
- Monthly rates from 0.89%
- Loans £50,000 to £10,000,000
- Decisions within 24 hours
Need to know
- Property security is essential
- Narrow rate band aids budgeting
- Exit plan scrutiny applies
Expert take
A short-term property lender that competes hard on price. The tight rate band appeals to developers who want cost certainty without the variable pricing of some peers. Good fit for experienced builders running straightforward UK projects with clear exits.
Source:https://www.mt-finance.com/
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How construction finance works for UK property developers
Construction finance is a short to medium term funding facility designed specifically for building projects. Unlike a standard commercial mortgage, where the full loan is released upfront against a completed property, construction finance is released in stages as each phase of the build progresses.
For UK property developers, this means you draw down funds to cover land acquisition, groundworks, structural framing, and finishing trades as each milestone is reached. Interest is typically charged only on the amount drawn, not the full facility, which helps manage cash flow during the build.
Most facilities on this list run between 3 and 18 months. One Stop Business Finance and Inhale Capital both offer terms in that range. Some lenders, such as United Trust Bank, can extend facilities up to 5 years for larger schemes. The facility is usually repaid through a sale of the completed units or refinancing onto a longer term commercial mortgage.
Understanding loan-to-cost ratios on UK construction projects
Lenders assess construction finance applications against two key ratios: loan-to-cost (LTC) and loan-to-gross-development-value (LTGDV). LTC measures how much of the build cost the lender will cover, including land, professional fees, and construction work. LTGDV looks at the loan as a percentage of the finished project's expected market value.
Among the providers on this list, maximum loan-to-value ratios typically range from 70% to 100%. Brightstar stands out by offering up to 100% LTV on development finance, which can reduce the upfront cash a developer needs. Together Money, United Trust Bank, One Stop Business Finance, and Inhale Capital all cap lending at 75% LTV. MT Finance offers up to 70%.
| Lender | Maximum LTV |
|---|---|
| Brightstar | 100% |
| One Stop Business Finance | 75% |
| Together Money | 75% |
| United Trust Bank | 75% |
| MT Finance | 70% |
The staged drawdown process explained for builders and developers
Construction finance is not released as a lump sum. Instead, lenders disburse funds through a series of staged payments tied to an agreed schedule of works. Each drawdown request is typically supported by a surveyor's report confirming that the previous stage has been completed to standard.
A typical drawdown schedule for a ground-up residential project might release funds at land purchase, completion of foundations, wall plate level, wind and watertight stage, first fix, and practical completion. Renovation and conversion projects follow a similar structure but with fewer stages.
This staged approach benefits both parties. The developer only pays interest on drawn funds, keeping monthly costs lower during early construction. The lender retains control over the budget and can spot cost overruns or delays early. Most lenders on this list require a monitoring surveyor to sign off each stage before releasing the next tranche.
How to secure competitive construction finance rates in the UK
The rate you are offered on construction finance depends on several factors: your track record as a developer, the size and location of the project, the type of build, and the loan-to-cost ratio. Experienced developers with a strong portfolio of completed projects typically access the lowest pricing.
Rates on this list vary widely by lender and risk profile. Together Money publishes rates from 0.55% to 1.5% per month for larger development schemes. MT Finance offers rates from 0.89% to 1.05% per month, while Inhale Capital sits between 1.05% and 1.3% per month. For borrowers who prefer annual pricing, Brightstar publishes rates from 5% to 12% annually and United Trust Bank from 5% to 12.5% annually.
To improve your chances of securing the best rate, prepare a detailed project appraisal with clear costings, a realistic timeline, and evidence of previous successful builds. Working through a broker like Funding Agent gives you access to multiple lenders in one application, helping you compare construction finance offers efficiently.
