Top 10 Development Finance Providers in the UK 2026
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Top 10 Development Finance Providers in the UK Compared
| Rank | Lender | Best for | Published loan range | Loan rate |
|---|---|---|---|---|
| 1 | One Stop Business Finance | Mid-sized residential development projects and ground-up builds | £100,000 to £3,000,000 | interest 1.6% to 3% |
| 2 | Brightstar | Small to mid-scale developments with flexible entry requirements | From £50,000 | interest 5% to 12% |
| 3 | Inhale Capital | Fast-access development funding for light refurbishment projects | £0 to £2,000,000 | interest 1.05% to 1.3% |
| 4 | Together Money | Large-scale residential and mixed-use development schemes | £50,000 to £25,000,000 | interest 0.55% to 1.5% |
| 5 | OakNorth | Larger developments needing bank-backed construction funding | From £1,000,000 | interest 5.5% to 12.5% |
| 6 | Shire Leasing | Smaller property development projects and light refurbs | £5,000 to £750,000 | interest 4% to 11% |
| 7 | Shireassetfinance | Quick-turnaround development finance for smaller schemes | £5,000 to £750,000 | interest 4.5% to 12% |
| 8 | United Trust Bank | Major residential and commercial development projects | £100,000 to £35,000,000 | interest 5% to 12.5% |
| 9 | Barclays | Established developers seeking commercial mortgage alternatives | £1,000 to £25,000,000 | interest 8.5% to 14.9% |
| 10 | MT Finance | Property bridging for time-sensitive development site purchases | £50,000 to £10,000,000 | interest 0.89% to 1.05% |
Development finance is a short-term funding solution designed specifically for property developers and construction companies undertaking ground-up builds, major refurbishments, or commercial-to-residential conversions. Choosing from the top 10 development finance providers in the UK can shape the viability of your entire project. Lenders typically release funds in staged drawdowns, aligned to key construction milestones, which helps manage cash flow across the build timeline. Understanding which providers offer the most suitable terms for your development is a critical first step.
Construction businesses and property developers compare lenders on several factors: loan-to-cost ratios, interest rates, facility size, speed of drawdowns, and sector experience. A lender that understands ground-up residential schemes may not suit a heavy refurbishment of a commercial unit. Some providers specialise in smaller light refurbs while others fund multi-million-pound new-build projects. The list below ranks ten UK development finance providers, highlighting what each one is best known for so you can narrow your options with confidence.
Important: Development finance rates and terms depend on project specifics, including planning status, GDV, build costs, and developer experience. The figures shown are indicative ranges from each lender. Always confirm current terms directly before committing to a facility. Funding Agent can help you compare quotes from selected providers on this list.
Funding Agent
Published loan rangeFrom £10,000 to up to £1,000,000
Rate typeInterest or factor rate
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%
Overview: A development finance option for UK construction firms and property developers needing between £100,000 and £3 million. It suits both residential and commercial ground-up projects where funding is released in stages against build progress.
Facilities are structured around the project lifecycle, with interest applied on drawn funds. The lender works with SMEs across housebuilding, office conversions and mixed-use schemes, providing capital for land acquisition through to completion.
Best next step: Ideal for staged drawdown on build projects.
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Loans from £100,000 to £3 million
- Interest only on drawn funds
- Covers residential and commercial builds
Need to know
- Requires suitable security against the development site
- Staged release tied to build progress milestones
- Personal guarantee may be requested
Expert take
One Stop Business Finance works well for SME developers who need a structured facility that releases funds as the build progresses, rather than a lump sum that incurs interest on idle cash.
Source:https://www.osbf.co.uk/
Brightstar
Published loan rangeFrom £50,000
Rate typeinterest 5% to 12%
Overview: Brightstar provides development finance starting from £50,000, making it accessible for smaller construction firms and developers tackling light refurbishments, conversions or single-unit new builds. Funding can be arranged within 24 hours.
The lender focuses on property-backed facilities where the development site or existing asset provides security. It suits construction businesses that need a responsive funding partner for time-sensitive land purchases or quick-start projects.
Best next step: Fast decisions for time-sensitive development projects.
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Funding from just £50,000
- Decisions within 24 hours
- Suits light and heavy refurbishments
Need to know
- Property-backed security is required
- Valuation and exit-risk checks apply
- Fees may be higher than term lending
Expert take
Brightstar is a practical choice for smaller developers who need quick decisions. The low minimum loan size opens the door for builders tackling single plots or conversion projects that high-street banks often overlook.
Inhale Capital
Published loan range£0 to £2,000,000
Rate typeinterest 1.05% to 1.3%
Overview: Inhale Capital offers development finance with interest rates starting from 1.05%, making it one of the more cost-effective options for construction firms funding residential or commercial developments. Loans run up to £2 million.
Facilities suit property developers needing capital for site acquisition, ground-up construction or major refurbishment. Funding decisions can be reached within 24 hours, helping builders move quickly on competitive land deals.
Best next step: Competitive rates for projects up to £2 million.
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Rates from just 1.05%
- Funding up to £2,000,000
- Decisions within 24 hours
Need to know
- Property-backed security is required
- Exit-risk and valuation checks apply
- Suitable for experienced developers
Expert take
Inhale Capital stands out for its low rates, which can make a meaningful difference to project viability. Developers working on medium-sized schemes should consider this lender if they want to keep financing costs lean.
Together Money
Published loan range£50,000 to £25,000,000
Rate typeinterest 0.55% to 1.5%
Overview: Together Money provides development finance from £50,000 to £25 million, covering the full spectrum from small builder projects to major residential and commercial schemes. Interest rates start as low as 0.55%.
The lender supports construction firms across land acquisition, build costs and refinancing of part-completed developments. Its broad appetite makes it relevant for housebuilders, commercial developers and mixed-use regeneration projects.
Best next step: Broad lending appetite from small builds to major schemes.
More info
Company stats
Loan range
Rates and debtor rules
Benefits
- Loans from £50,000 to £25 million
- Rates starting at 0.55%
- Covers land and build costs
Need to know
- Property-backed security is required
- Higher fees may apply on complex deals
- Exit strategy assessment is standard
Expert take
Together Money offers one of the widest development finance ranges in the market. Its upper limit of £25 million makes it a contender for larger housebuilders and commercial developers running multi-phase schemes.
Source:https://togethermoney.com/
OakNorth
Published loan rangeFrom £1,000,000
Rate typeinterest 5.5% to 12.5%
Overview: OakNorth is a mainstream bank offering property development finance from £1 million upwards. It targets established construction companies and developers running larger residential or commercial projects that require substantial capital.
Funding can cover land purchase, build costs and refinancing of existing facilities. The bank's underwriting is thorough, so developers should expect detailed scrutiny of project viability, contractor track record and exit strategy.
Best next step: Best for established developers with large-scale projects.
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Loans from £1,000,000
- Covers land and construction costs
- Strong brand and market presence
Need to know
- Bank underwriting can be slower and stricter
- Strong trading history typically required
- Detailed project viability assessment needed
Expert take
OakNorth suits experienced developers with a proven track record. While its processes are more involved than alternative lenders, the bank brings stability and a deep understanding of property development finance to the table.
Shire Leasing
Published loan range£5,000 to £750,000
Rate typeinterest 4% to 11%
Overview: Shire Leasing offers property development finance from £5,000 to £750,000, making it a natural fit for smaller construction firms, sole traders and builders tackling modest developments, extensions or refurbishment projects.
Funding decisions can arrive within 24 hours, helping developers secure land or materials quickly. While the lender also covers asset finance and revenue-based facilities, its development product targets property-backed construction projects.
Best next step: Accessible funding for smaller builders and refurb projects.
More info
Company stats
Loan range
Rates and debtor rules
Benefits
- Loans from just £5,000
- Decisions within 24 hours
- Covers asset and property finance
Need to know
- Upper limit of £750,000
- Security and affordability checks apply
- May require personal guarantee
Expert take
Shire Leasing fills an important gap for small-scale builders and sole traders who need modest development funding. Its low minimum loan size means even single-unit projects can access finance without excessive scrutiny.
Shireassetfinance
Published loan range£5,000 to £750,000
Rate typeinterest 4.5% to 12%
Overview: Shireassetfinance provides property development funding from £5,000 to £750,000, with decisions possible within four hours. It suits construction businesses needing rapid access to capital for smaller builds, conversions or refurbishments.
The lender's development product is secured against property assets. While its background spans asset finance and revenue-based lending, construction firms can use its development facility for land purchase, build costs or project bridging.
Best next step: Decisions in as little as four hours.
More info
Company stats
Loan range
Rates and debtor rules
Benefits
- Loans from £5,000
- Decisions within four hours
- Property-backed development funding
Need to know
- Maximum loan is £750,000
- Security and valuation checks apply
- Best for smaller construction projects
Expert take
Shireassetfinance offers some of the fastest decision times in this list. For developers who need to move quickly on a land deal or material purchase, the four-hour turnaround could be a decisive advantage.
United Trust Bank
Published loan range£100,000 to £35,000,000
Rate typeinterest 5% to 12.5%
Overview: United Trust Bank provides property development finance from £100,000 to £35 million, making it one of the highest-capacity lenders on this list. It suits established construction firms and developers running large residential or commercial schemes.
Funding typically supports land acquisition, construction costs and project refinancing. The bank takes a detailed view of each scheme, assessing planning status, contractor experience and projected gross development value before committing.
Best next step: High-capacity funding for major development schemes.
More info
Company stats
Loan range
Rates and debtor rules
Benefits
- Loans up to £35,000,000
- From £100,000 minimum
- Covers land and construction costs
Need to know
- Detailed scheme assessment required
- Property-backed security is essential
- Best for experienced developers
Expert take
United Trust Bank is a heavyweight in development finance. Its £35 million upper limit places it among the top choices for large-scale housebuilders and commercial developers who need substantial, structured facilities.
Source:https://www.utbank.co.uk/
Barclays
Published loan range£1,000 to £25,000,000
Rate typeinterest 8.5% to 14.9%
Overview: Barclays offers business mortgages that can support property development projects, with lending from £1,000 to £25 million. As a high-street bank, it provides a familiar route for construction firms seeking long-term secured funding.
While not a pure development finance product, Barclays' commercial mortgage can fund land and property acquisitions that form part of a wider development pipeline. Underwriting is thorough, with affordability and trading history assessments.
Best next step: A familiar high-street option for development property purchases.
More info
Company stats
Loan range
Rates and debtor rules
Benefits
- Loans from £1,000 to £25 million
- Trusted high-street banking brand
- Long-term secured lending available
Need to know
- Not a dedicated development finance product
- Bank underwriting can be slow and strict
- Strong trading history usually required
Expert take
Barclays works best for developers who are acquiring land or property as part of a longer-term strategy, rather than needing a staged development facility. It is a known quantity for established construction businesses.
MT Finance
Published loan range£50,000 to £10,000,000
Rate typeinterest 0.89% to 1.05%
Overview: MT Finance provides commercial property bridging from £50,000 to £10 million, with rates from 0.89%. It suits construction firms and developers needing short-term funding for land acquisition, site assembly or part-completed project refinancing.
Decisions typically arrive within 24 hours, making this a practical option for developers moving on competitive land opportunities. The lender focuses on property-backed deals where a clear exit strategy is in place.
Best next step: Short-term bridging for land and development opportunities.
More info
Company stats
Loan range
Rates and debtor rules
Benefits
- Loans from £50,000 to £10 million
- Rates starting at 0.89%
- Decisions within 24 hours
Need to know
- Short-term bridging, not staged development
- Clear exit strategy is essential
- Property-backed security required
Expert take
MT Finance is a strong fit for developers who need bridging capital to secure land or refinance a project before arranging longer-term development finance. Speed is its main advantage.
Source:https://www.mt-finance.com/
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How development finance works for UK property developers
Development finance is a short-term funding facility designed specifically for property development and ground-up construction. Unlike a standard business loan, funds are not released as a single lump sum. Instead, lenders release capital in staged drawdowns, aligned to key build milestones such as site acquisition, foundations, wall plate, and roof completion.
Interest is charged only on the drawn amount, not the full facility. This keeps costs manageable during the early phases of a project. Most facilities run for 12 to 24 months, with repayment expected from the sale of completed units or through refinancing onto a longer-term commercial mortgage. Developers should budget for professional fees, planning costs, and a contingency for overruns, as lenders typically scrutinise these before approving a facility.
Development finance vs bridging loans and commercial mortgages
While all three products involve property, they serve different purposes. Development finance funds the construction or major refurbishment of residential or commercial property from the ground up. Bridging loans are intended for short-term property purchases, auction acquisitions, or chain-break scenarios where speed is critical. Commercial mortgages provide longer-term funding for completed, income-generating property assets.
The key distinction lies in how funds are deployed. Development lenders release money in stages against certified works, whereas bridging and commercial mortgage lenders typically advance the full loan on day one. Exit strategy also differs: development loans are repaid through property sales or refinance, while commercial mortgages are serviced over many years from rental income or business profits. Choosing the wrong product for a construction project can create serious cash flow problems.
Loan-to-cost ratios and exit strategies for UK construction projects
Development finance lenders assess two critical ratios. Loan-to-cost (LTC) measures the loan as a percentage of total project costs, including land, build, and professional fees. Most UK development lenders cap LTC between 65% and 75%, meaning the developer must contribute the remainder from their own resources. Loan-to-gross-development-value (LTGDV) compares the loan to the projected end value of the scheme, usually capped around 60% to 65%.
Your exit strategy must be credible. The most common routes are selling the completed units on the open market or refinancing onto a commercial mortgage to hold and let. Lenders will test your exit assumptions, so realistic market appraisals and evidence of demand in the local area are essential. A weak exit plan is one of the most common reasons development finance applications are declined.
How to choose the right development finance lender for your project
Not every development finance provider suits every project. Start by checking the lender's minimum and maximum loan size: some specialise in smaller schemes under £500,000, while others only consider projects above £1 million. Confirm whether they fund residential, commercial, or mixed-use developments, as not all cover every asset class.
Compare rate structures carefully. Some lenders quote monthly rates, others use annual rates, and this can make direct cost comparisons misleading. Ask whether the lender offers fixed or variable rates and what arrangement fees apply. Look at their track record in your region and sector: a lender familiar with commercial-to-residential conversions, for example, will typically move faster than one unfamiliar with the planning nuances. Finally, check whether they require personal guarantees or additional security beyond the development site itself.
FAQs
Development finance is a short-to-medium-term funding solution designed specifically for property developers and construction projects. Lenders release funds in staged drawdowns, typically aligned with key build milestones such as groundworks, superstructure completion, and fit-out. You only pay interest on the amount drawn, not the full facility. The loan is usually repaid through the sale of completed units, refinancing onto a commercial mortgage, or letting the property and switching to a buy-to-let product. Loan terms generally range from 12 to 36 months, giving developers time to complete and exit the project.
Eligibility varies by lender, but most providers look for developers with a proven track record of completing similar projects. First-time developers may still qualify, though they often face stricter criteria such as lower loan-to-value ratios or the need for a more experienced project team. Lenders will assess the viability of your scheme, your financial standing, the quality of your professional team including architects and contractors, and the projected gross development value. Having detailed planning permission in place is typically essential before a formal application can proceed.
Development finance rates and terms vary significantly depending on the lender, the project type, the loan-to-gross-development-value ratio, and your experience as a developer. Interest rates are commonly charged monthly and can be rolled into the facility rather than paid out of pocket during the build phase. Arrangement fees, exit fees, and legal and valuation costs also apply and differ from one provider to the next. Loan terms typically run between 12 and 36 months, with some flexibility for larger schemes. Because the market is constantly shifting, comparing offers from multiple lenders is essential to finding the most suitable deal for your project in 2026.
Development finance, bridging finance, and commercial mortgages serve different purposes. Development finance is purpose-built for ground-up construction or heavy refurbishment, with staged drawdowns linked to build progress. Bridging finance is shorter-term, usually arranged at speed for purchasing land or property before development funding kicks in, often within 12 months. A commercial mortgage is a longer-term product designed for completed, income-generating properties and is sometimes used as an exit route from development finance. Choosing the right product depends on your project stage: bridging for quick land acquisition, development finance for the build phase, and a commercial mortgage for long-term holding after completion.
Look beyond headline rates and consider the lender's sector experience, speed of decision-making, and flexibility around drawdowns. A provider with a strong understanding of your project type, whether residential new-build or commercial conversion, can add real value. Check their track record in your region, the transparency of their fee structure including arrangement and exit fees, and whether they require a personal guarantee. It is also worth asking about their appetite for variations during the build and how they handle potential delays. Speaking to a specialist broker who understands the development finance market can help you navigate the options and find a lender aligned with your specific project needs.
Yes, it is possible to secure development finance as a first-time developer, though the options may be more limited and the terms more conservative. Lenders will place greater emphasis on the strength of your business plan, the quality of your professional team, and the viability of the project itself. You may need to contribute a larger deposit, accept a lower loan-to-cost ratio, or provide additional security. Some lenders specialise in supporting first-time developers and will assign a dedicated relationship manager to guide you through the process. Building a strong team around you, including an experienced contractor, quantity surveyor, and planning consultant, can significantly improve your chances of approval.
