Pluto Finance raised £500 million from institutional investors for a U.K. lending fund for residential development, IPE Real Estate reported.

The new fund will provide senior debt, bridging loans and stretched senior finance to U.K. housing developers, the report said.

The company will provide lower-leverage senior debt with interest rates from 3.95%, which is competitive with clearing banks, the report noted, citing Pluto Finance partner Justin Faiz.