Bridge Your Funding Gap With Mezzanine Finance
- Up to 90% of costs (Loan to Cost)
- Up to 75% of Gross Development Value
- Loans from £1,000,000 to £30,000,000
- Rates from 4.75%pa over BoE Base
Senior debt rarely covers everything a development needs. When the funding falls short, and you do not have enough equity to cover the difference, your project can grind to a halt before it truly gets started. Mezzanine development finance steps in to cover that gap. It sits in the capital stack above your senior loan and below your own equity, providing the extra funding your build needs to move forward. PropertyFinanceCompare connects developers with specialist mezzanine lenders across the UK who know exactly how development schemes work.
We are a regulated credit broker authorised by the Financial Conduct Authority. That means we do not lend directly. Instead, we work between you and our panel of active mezzanine finance providers to find the right fit for your scheme. We look at your full capital requirements, structure the deal to sit cleanly alongside your senior debt, and bring it to lenders who are actively looking to back projects like yours. Whether you need to put less of your own money in or fill a gap that has appeared mid-build, we handle the process from start to finish.
Why Work With Us?
PropertyFinanaceCompare.com is a team of professional brokers, not lenders. We become a bridge between borrowers and lenders to enter into different types of loan agreements, including both secured and unsecured loan agreements.
Reliable property development loan comparisons that you can trust. It is always nice to know that our clients are on the right track. What makes us different
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FAQs
Who offers mezzanine finance for property development in the UK?
Mezzanine finance in the UK comes from specialist lenders, not the high-street banks. These are typically private credit funds and alternative finance houses that are comfortable sitting in a second-charge position behind the senior lender. Because they take on more risk than a senior lender does, they charge higher interest rates. What they offer in return is the extra layer of funding that gets your development over the line when senior debt alone is not enough.
We have direct relationships with active mezzanine lenders across the UK. We match your scheme to those already backing similar developments and get indicative terms back quickly, without you having to knock on multiple doors yourself.
• Direct access to active UK mezzanine lenders.
• Terms matched to your scheme type and gross development value.
• Quicker decisions through our existing lender relationships.
What are the eligibility criteria for mezzanine finance?
Lenders look at the strength of your project first. Your personal credit history is far less important than the quality of the scheme itself. They want to see a solid gross development value, a clear planning consent, a realistic build programme, and a reliable contractor. They will also want to understand how you plan to exit the loan, whether through sale, open-market disposal, or refinancing into a term loan once the build is complete.
We go through your numbers with you before anything is submitted. We spot any gaps in your presentation and make sure your submission is in the best possible shape before it reaches a lender’s desk.
• The scheme itself carries more weight than personal credit history.
• A clear exit plan is required by most mezzanine lenders.
• We review everything before approaching any lender on your behalf.
Can a broker help me secure mezzanine property development finance?
Absolutely. Going to lenders one by one on your own takes time and rarely produces the best terms. A specialist broker packages your development appraisal properly and takes it straight to the lenders most likely to say yes. That means fewer delays and better results.
At PropertyFinanceCompare, we manage everything from your first enquiry through to the money being drawn down. We also ensure the mezzanine facility aligns with your senior loan so that all legal and security arrangements line up from day one.
• We package your appraisal and present it to the right lenders.
• We coordinate between your senior lender and mezzanine provider.
• We stay with you from first call through to facility drawdown.
Who are the best mezzanine finance providers in the UK?
There is no single answer because the right lender depends on your scheme. The size of the development, your planning status, your experience as a developer, and the senior facility already in place all influence which providers are the right match. Some lenders focus purely on residential schemes. Others prefer commercial or mixed-use projects. Rates, fees, and loan-to-cost terms differ from one lender to the next.
We compare providers across our panel and only put forward those whose lending criteria genuinely fit your project. That saves you time and protects you from approaches that are unlikely to go anywhere.
• Our full panel will compare to find the right match for your scheme.
• Matched on scheme type, deal size, and senior debt structure.
• Straightforward, independent recommendations with no lender bias.
Which mezzanine finance providers work with first-time developers?
Some mezzanine lenders are open to working with developers who are building for the first time. What matters most is having a well-structured scheme and a senior debt facility that is already in place or close to being confirmed. A strong planning consent, a trustworthy contractor, and a solid cost plan can go a long way with a lender’s credit team, even if you have not done this before.
We help first-time developers put their best foot forward. We know the questions lenders will ask, and we make sure your submission answers them clearly before it is ever sent.
• Some lenders are open to first-time developers with strong schemes.
• We prepare your submission to address lender concerns head-on.
• Matched to providers whose lending policy suits less experienced applicants.
What are the uses for mezzanine capital?
Typical funding events include leveraged buyouts, management buyouts, organic expansion, and recapitalizations.
What kinds of mezzanine investments are available?
• Second lien debt
• Subordinated debt
• Preferred stock
• Other hybrid junior capital securities
Mezzanine financing can benefit which companies?
Mezzanine financing can be beneficial for private equity firms, middle-market companies, independent sponsors, and management teams.
What do lenders look for in potential borrowers?
• Industry
• Business model
• Size
• Growth
• Profitability
• Existing debt
• Ownership
What is the difference between mezzanine debt and subordinated debt?
The common structure for mezzanine debt is insecure subordinate debt, so basically, they are the same. However, the main difference is that mezzanine debt refers to debt coupled with equity participation, which is not the case for subordinated debt.
