Can I get a mezzanine development loan with adverse credit?

Similar to traditional mortgages, there are lenders within the mezzanine development finance sector who consider applicants with adverse credit histories. If you have a history of missed payments, County Court Judgments (CCJs), defaults, or even an Individual Voluntary Arrangement (IVA), Mortgage Lane can assist you in finding a suitable lender for your development loan. For those discharged from bankruptcy, the range of options generally broadens after 3 years, and even more so after 6 years.

In mezzanine development finance, it’s important to note that lenders not only adopt a ‘non-status’ approach in their underwriting, focusing on the project’s profitability potential and the viability of the exit strategy, but they also pay close attention to how the original loan facility has been maintained. This means that while they may be more focused on the project itself rather than the applicant’s credit history, they will also consider the management of any existing finance. Good maintenance of the original facility can be a positive factor in the lending decision. This balanced approach allows developers with adverse credit, who have demonstrated responsible financial management in their ongoing projects, to secure the financing they need for their development projects.