Mezzanine Loans

Mezzanine Loans act as ‘top-up’ funding for developments which require additional borrowing. A Mezzanine Loan provider will take a second legal charge on the site, enabling the borrower to stretch their borrowing to up to 75% of the GDV when the senior loan is capped lower.

Interest rates for Mezzanine Loans are higher due to their security being ranked behind that of the senior loan, they tend to be between 15-25% p.a. but this is charged on a small percentage of the overall debt.