OakNorth Bank is a UK bank that provides larger, tailored loans to growing businesses, and property development is one of its main sectors. It lends from £1 million to around £35 million on ground-up development, heavy refurbishment and conversions, with terms of up to 36 months that are longer than many development lenders offer. Bridge & Build Finance is an independent broker and is not part of OakNorth Bank, so we can compare its terms with other banks and specialist lenders. You can read more on OakNorth's development finance page.
About OakNorth Bank
OakNorth Bank plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. It has offices in London and Manchester, funds its lending partly from savers' deposits, and says it has lent more than £11 billion to UK businesses. Its own FAQs state that it is not a member or subsidiary of any other banking group.
OakNorth's approach is to structure each loan around the individual business and project rather than applying fixed sector rules. In property it works with developers and investors, and says it has funded schemes such as office conversions, student residences and the conversion of vacant buildings. Depending on loan size, borrowers may meet the decision makers at credit committee.
OakNorth Bank is one of the lenders we compare for larger development finance cases.
What OakNorth Bank funds
At the time of writing (October 2026), OakNorth's published development finance criteria are:
| Area | What OakNorth offers |
|---|---|
| Loan size | £1 million to around £35 million |
| Leverage | Up to 65% of GDV and 75% of costs, typically 60% and 70%; its website quotes a typical 55% of GDV |
| Term | Typically up to 36 months, usually with a period after completion to sell or refinance |
| Schemes | Ground-up development; heavy refurbishment, conversion and renovation |
| Property | Residential, commercial and mixed use, including student accommodation and office conversions |
| Other facilities | Bridging loans, revolving credit facilities and umbrella facilities for repeat projects |
| Interest | Charged on drawn funds; staged repayment as units sell on multi-unit schemes |
OakNorth's bridging can be used to buy a site before planning permission, then exit onto a development facility once planning is granted, which can keep the whole project with one lender. OakNorth accepts planning gain towards your contribution, although it prefers some cash in the scheme, and it expects your equity to go in before the loan is drawn. Its umbrella and revolving facilities are designed for developers with a pipeline who want to avoid arranging a new loan for each scheme. See our pages on planning gain bridging and revolving facilities.
Who OakNorth Bank suits (and who it may not)
OakNorth tends to suit:
- Experienced developers and investors with schemes needing £1 million or more.
- Larger or more complex schemes, such as student accommodation or office-to-residential conversions.
- Developers who want a longer build term, up to 36 months.
- Developers with a pipeline who could use an umbrella or revolving facility.
- Borrowers who want to buy a site with bridging and move onto development finance with the same lender.
It is usually a poorer fit for smaller schemes below £1 million, first-time developers without a strong team, and anyone who needs higher leverage, as its typical 60% to 65% of GDV is below what many specialist lenders offer. Developers needing more borrowing may look at stretch senior lending or mezzanine finance.
What OakNorth Bank looks at
OakNorth says it looks beyond historical figures to the specific characteristics of each business and project. For development finance, expect it to consider:
- Your experience and track record, and the strength of your professional team.
- The development appraisal, including total costs relative to GDV.
- Planning status, or the route to planning for a bridging-to-development case.
- The contractor, the build programme and the construction risk.
- Market evidence for sales or lettings, and the exit or refinance plan.
- Your equity contribution and the wider financial position of the business.
Pros and cons
Pros
- A UK bank able to lend from £1 million to around £35 million.
- Planning gain can count towards your contribution.
- Terms of up to 36 months, longer than many development lenders.
- Bridging, revolving and umbrella facilities alongside development finance.
- Tailored structuring and access to decision makers on larger loans.
- Experience with student accommodation and conversion schemes.
Cons
- Minimum loan of £1 million.
- Leverage of up to 65% of GDV, typically 60%, lower than many specialists.
- Several fees can apply, including arrangement, monitoring, exit and non-utilisation fees.
- Not designed for small or first-time developers.
Going through a broker vs going direct
OakNorth accepts applications from developers directly and works with introducers. Going direct gives you one bank's terms. Because its leverage is lower than many specialist lenders, it is worth comparing an OakNorth offer, including all fees, against both other banks and higher-leverage options to see which gives the better overall return on your equity.
We search the market for development finance, prepare your appraisal and approach suitable lenders, including OakNorth where it fits. It is free to enquire, and any broker fee is disclosed before you proceed. See how development finance works.
Alternatives to OakNorth Bank
- Paragon Bank: a specialist bank lending on residential development from around £1 million.
- Secure Trust Bank: real estate development lending on larger schemes.
- Hampshire Trust Bank: development, bridging and development exit finance.
- Shawbrook Bank: development and bridging finance from a specialist bank.
- Atelier Finance: development finance for larger schemes from £3 million.
Common questions
How much does OakNorth lend on development?
OakNorth lends from £1 million to around £35 million on property development, up to 65% of GDV and 75% of costs, with 60% and 70% more typical.
What term does OakNorth offer on development finance?
OakNorth says it can typically offer development finance for up to 36 months, usually with a period after completion to sell or refinance.
Does OakNorth offer bridging loans?
Yes. OakNorth offers bridging, including loans to buy a site before planning permission, with an exit onto a development facility once planning is granted.
Is OakNorth a bank?
Yes. OakNorth Bank plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.
Does OakNorth lend to first-time developers?
OakNorth does not publish a minimum experience requirement, but with a £1 million minimum loan and bank-style underwriting it is generally better suited to experienced developers.
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.
