How Much Can I Borrow?
We can offer mezzanine funding from £250,000 with no maximum loan size. We can usually fund up to 90% of the total project costs using mezzanine finance.
How Much Will It Cost?
Mezzanine finance tends to be priced on a case by case basis. We work with lenders across the whole market to ensure we always secure the best terms for your project.
Rates usually start at 1% per month. As the provider is sitting behind the main development finance lender, they are taking a much higher risk and will charge a premium as a result.
Pricing will usually depend on the following factors:
- Amount of deposit input
- Likely demand for the finished product
- The scheme being lent against
- The strength and experience of the borrower
- The location of the project
- The amount required
Secure the Lowest Mezzanine Finance Rates
Our advisers can offer market-leading mezzanine funding – fast.
We work with lenders across the sector to provide fast and reliable mezzanine finance up to 90% of the project costs.
What Locations are Eligible for Funding?
We can offer funding for schemes across England, Wales and Scotland. We have funders who can offer special, low rate lending for projects in London and the South East.
Is Taking Out Mezzanine Finance Risky?
As this type of funding is designed to allow you to maximise the borrowing on your project, you will naturally end up with very high gearing.
When taking out mezzanine finance, you will be personally liable for the debt, whether the loan is made in your personal name or via a limited company. When applications are made in limited company names, the lender will personally tie you to the loan by requiring a personal guarantee.
As such, should you ever default on the loan and the property be repossessed, there is a real chance that the sale price could end up being below the loan amount. This would leave you having to honour your personal guarantee and repay the difference.
What Are the Alternatives to Mezzanine Finance?
There can be vast differences in the maximum loans offered by different lenders and as such, it may be possible to achieve the loan you’re looking for from a single lender. When you ask us to take a look at mezzanine finance for you, we will be happy to compare all the options for you.
Alternatively, if you’re looking to borrow more and are happy to profit share, joint venture development finance is worth considering.
Finally, if you have additional security available, you may be able to offer it as security for the loan to your senior development finance lender. In this case, you may find that the rate offered will be lower than those offered through development finance lenders. The downside to this approach is that the property offered as security will be at risk should you default on the loan.
Contact Us Today
At ABC Finance Ltd. we’re committed to helping you secure the best rates possible on mezzanine development finance.
Enquire online now or call us on 01922 620008 to get a rapid bespoke quote.