Magnet Capital is a specialist development finance lender for small and medium-sized residential schemes, covering new build, conversions and refurbishment. It describes its approach as relationship-led, with many borrowers coming back for further projects. Bridge & Build Finance is an independent broker and is not part of Magnet Capital; it is one of the lenders we compare for development finance. You can read more on Magnet Capital's own website.
About Magnet Capital
Magnet Capital describes itself as a specialist property development finance lender built on long-term relationships, focused solely on development lending. It is based in Mill Hill, north London, and is run by its two co-founders.
Magnet says its team has more than 70 years of combined experience, that it has supported more than 150 developers, and that around 45% of its borrowers return for further funding. It does not publish details of its ownership or funding lines, so we have not included them here.
Because it focuses on development, Magnet does not offer standard bridging or regulated loans. Its lending is for developers and property companies.
What Magnet Capital funds
At the time of writing (October 2026), Magnet offers four development products with broadly similar headline criteria.
| Product | What it is for |
|---|---|
| Ground-up development finance | New-build schemes, funding site and build costs |
| Conversion development finance | Converting buildings, including commercial to residential |
| Heavy refurbishment finance | Structural works or projects needing planning or building regulations |
| Light refurbishment finance | Cosmetic and non-structural upgrades |
| Criteria | What Magnet says |
|---|---|
| Loan size | £250,000 to £4 million |
| Leverage | Up to 55% of GDV before rolled-up interest, and up to 65% including it; 100% of build costs, plus part of the site cost |
| Term | Up to 18 months |
| Interest | Rolled up or serviced monthly |
| Where | From South Manchester down to Cornwall, including South Wales |
Magnet funds 100% of build costs, with interest rolled up so there is no interest on interest, and it does not need a quantity surveyor where build costs are under £500,000. Schemes of 1 to 20 units are considered, with larger sites phased, and Magnet meets every client face to face. See our guides to heavy refurbishment finance and commercial to residential finance for more on those project types.
Who Magnet Capital suits (and who it may not)
Magnet tends to suit:
- SME developers with schemes needing £250,000 to £4 million.
- Projects from South Manchester down to Cornwall, including the Midlands and South Wales.
- Conversions and heavy refurbishments as well as ground-up builds.
- First-time developers, who Magnet funds, particularly with a well-structured scheme and a strong professional team.
- Developers who value a repeat relationship with the same lender.
It may not suit schemes in northern England or Scotland, builds needing more than 18 months, very small or very large loans, or anyone needing a bridging loan, development exit or regulated lending.
What Magnet Capital looks at
For a development or refurbishment loan, expect Magnet to look at:
- The site or building, its value, planning status and the GDV supported by valuation.
- The build cost plan, programme, contractor and professional team.
- Your experience. Magnet says a track record is not strictly required on simpler schemes but may be needed for larger or more complex ones.
- Your contribution and how the loan fits within its LTV, LTGDV and LTC limits.
- The exit: sale of units or refinance onto term finance.
Pros and cons
Pros
- Specialist focus on development and refurbishment.
- Covers ground-up, conversion, heavy and light refurbishment.
- Funds first-time developers.
- 100% of build costs funded, with interest rolled up.
- No quantity surveyor needed on build costs under £500,000.
- Repeat-borrower focus.
Cons
- Lends only from South Manchester southwards, including South Wales.
- Leverage of 55% of GDV before rolled-up interest is lower than some lenders.
- Maximum term of 18 months.
- Loans capped at £4 million.
- No bridging, development exit or regulated lending.
Going through a broker vs going direct
Magnet lends to developers directly and through brokers. Comparing first matters because development lenders in this size range differ on leverage, term length, experience requirements and where they lend. A scheme in the north, or one needing a longer build period, may be better placed elsewhere.
It also helps to plan the exit early. Magnet does not offer development exit or term finance, so if units may take time to sell, it is worth knowing which lenders could refinance the completed scheme before you commit to the build loan.
We search the market, set Magnet alongside other development lenders, present your scheme and manage the application through to completion. It is free to enquire, and any broker fee is disclosed before you proceed.
Alternatives to Magnet Capital
- MSP Capital: development finance for smaller and mid-sized schemes.
- Signature: development lending up to £3 million.
- Heritage: development finance for smaller schemes.
- Close Brothers: bank-backed development finance.
- Goldentree: development lending, including regulated builds.
Common questions
How much can I borrow from Magnet Capital?
At the time of writing, Magnet lends from £250,000 to £4 million, funding 100% of build costs, up to 55% of GDV before rolled-up interest and 65% including it.
Does Magnet Capital lend to first-time developers?
Yes. Magnet funds first-time developers, particularly where the project is well structured and has a strong professional team. Larger or more complex schemes may need a track record.
Where does Magnet Capital lend?
From South Manchester down to Cornwall, including South Wales and the Midlands.
How long can a Magnet Capital loan last?
Up to 18 months, and Magnet says loans can be extended in three-month steps where there is good reason. If your build will take longer, we can compare lenders offering longer terms.
Does Magnet Capital offer bridging loans?
No. Magnet focuses solely on development and refurbishment finance.
This review is our independent summary of the lender's publicly stated lending, checked in October 2026. Criteria change, so confirm the current position before relying on it. Bridge & Build Finance is an independent broker and is not part of any lender reviewed. Finance is subject to status, valuation and lender approval.
