Mezzanine Finance
Mezzanine Finance deals
Comparing mortgage deals is daunting when you’re starting out. So we put all our latest offers – sourced via our expert comparison tool – in one place. Our mortgage advisors will happily talk you through them.
Mezzanine Finance calculators
You’ve seen a spectacular property. In your dreams you already live there – but can you afford it? Introducing our mortgage calculator, the most reliable tool in the business when you need to number crunch fast.
Mezzanine Finance calculators
You’ve seen a spectacular property. In your dreams you already live there – but can you afford it? Introducing our mortgage calculator, the most reliable tool in the business when you need to number crunch fast.
Mezzanine Finance information
When you’ve worked hard to buy your first home, securing your first mortgage shouldn’t be taxing. Jargon-free and user-friendly, our mortgage guide tells you all you need to know.
Let Us Guide You
Check out our essential guides on all you need to know about the mortgage process.
How much deposit do I need?
When it coms to putting down a deposit to buy a property, the more you can save up, the better.
Do I need life insurance?
Protection for you and your family should the worst happen.
What are the different types of mortgage?
With so many different mortgage deals to choose from, finding the right one for your individual circmstances can feel difficult to find.
Mezzanine FAQs
Mezzanine Finance is a flexible funding solution blending debt and equity, typically used to fill gaps between senior loans and total project costs—ideal for property development, business expansion, or acquisitions. Secured against assets or future cash flow, it offers higher loan-to-value (LTV) ratios (up to 85-90% combined with senior debt) but carries higher interest rates (12-20% annually) and may include equity warrants. At Property Finance Choices, we structure bespoke mezzanine deals with clear exit strategies, prioritizing your project’s potential over rigid criteria.
Consider Mezzanine Finance when traditional lenders cap your borrowing, but you need extra capital for time-sensitive opportunities like development phases, refinancing, or M&A. It’s perfect for developers with 70% senior debt needing 15-20% top-up, businesses scaling without diluting ownership, or investors acquiring high-value assets. We’ll assess your cash flow, collateral, and exit plan to ensure the loan aligns with your timeline and goals—turning funding gaps into growth leaps!
Loan amounts depend on project scale and security, typically ranging from £500k to £20m+, with combined senior and mezzanine debt reaching 85-90% LTV. For example, a £5m development with £3.5m senior debt could secure £1m mezzanine finance. We negotiate terms based on asset value, cash flow projections, and exit routes (e.g., property sale or refinancing), ensuring you maximize leverage without overextending.
Costs include interest rates (12-20% p.a., often rolled up), arrangement fees (2-5% of the loan), and legal/valuation charges. While pricier than senior debt, mezzanine finance avoids equity dilution and offers speed/flexibility. We provide transparent cost breakdowns, compare lenders, and structure repayments to align with your project’s cash flow—so you keep control and profitability intact.
Yes! Mezzanine Finance works alongside senior debt, sitting in a secondary security position. Lenders require a subordination agreement with your senior lender and clear exit plans (e.g., refinancing post-completion). We’ll coordinate with all parties, negotiate terms, and ensure seamless integration—so your project stays on track, even with layered financing.
