What is Mezzanine development finance?

Mezzanine development finance is a powerful tool for property developers seeking to bridge funding gaps without refinancing their entire loan facility. Sitting between senior debt and developer equity, it provides a second charge loan that can significantly boost total borrowing power. This type of property development funding is ideal when senior lenders won’t stretch far enough-particularly in situations involving over-budget construction, planning permission changes, or additional unit approvals. With the ability to fund up to 95% Loan to Cost (LTC) or around 80% Loan to Gross Development Value (LTGDV), mezzanine construction finance is especially useful for schemes needing flexibility in cash flow and minimal equity input. Though the interest rates are typically higher than senior debt, the access to larger capital and the ability to retain control of the project make it a worthwhile consideration for experienced developers. Commonly used in ground-up builds, commercial-to-residential conversions, partially completed projects, and even modular developments, a mezzanine loan for property developers offers adaptable funding that evolves with your scheme. It’s particularly suited to complex developments with title restrictions, unusual building types, or phased sales timelines. We work with trusted mezzanine finance providers in the UK to arrange structured, whole-of-market solutions tailored to your project’s timeline and funding strategy. Whether you’re dealing with a constrained capital stack or preparing to scale a site mid-build, our access to exclusive products and specialist lenders ensures you’re equipped with the right funding at the right time.