• Mezzanine loan facilities ranging from £50k up to £10m.
  • Up to 80% of GDV as a second charge mezzanine loan.
  • Mezzanine loan facilities up to 90% loan to cost on a net basis.
  • Funding from 14% per annum.
  • Mezzanine loan interest rates are non compounding making a huge difference in cost.
  • Reduce the equity contribution to 5 – 10% of costs.

Mezzanine Loan Finance Solutions

Mezzanine loan finance provides a top up layer of funding, sitting above the senior debt provider but under the developers equity. Typically this funding is secured by a second charge and allows for the loan to cost to be increased thereby providing debt funding facilities up to a 90% net loan to costs.

It allows developers to de-risk their equity by minimising the cash required to be invested in any one project meaning it can instead be spread among several. This will ultimately provide a greater return.

Typical Criteria

  • Full planning needs to be granted.
  • Project terms between 3 months and 36 months.
  • Second charges must be available over the project.
  • GDV’s of £500k plus.
  • Mezzanine loan requirements from £50k to £10m.
  • Projects throughout the UK.
  • Strong track record and experience required

Example Facility

Mezzanine loan finance is a popular option for developers to decrease their equity contribution to a project. It is used in conjunction with a senior debt facility and is typically secured by a second charge over the project.

  • This example demonstrates a project with a £8m build cost and a £10m GDV.
  • Senior debt provides for £5.2m – 65% of build costs and 48% of GDV.
  • Mezzanine funding increases the lend by £2m – an additional 25% of build costs.
  • The total debt facility increases to £7.2m – 90% of project costs.
  • The affect is a reduction in the developer’s contribution.

Summary points

  • Funding is available to most developers but a strong track record is preferred.
  • Mezzanine loan facilities can leverage the project thereby minimising the developers contribution.
  • Interest rates are from 14% per annum
  • Interest rates and are non compounding which dramatically decreases the overall cost.
  • Loan facilities are available from £50k to £10m.
  • Terms can be between 3 months and 36 months.
  • Loans are available for a multitude of developments.

How Oakmead Finance can help

Oakmead Finance is a trusted specialist in property development finance having helped source and arrange development finance facilities from £250k to £94m. We have experience in arranging and structuring development finance facilities up to 90% loan to costs including senior debt, mezzanine loans, bridging loan finance and equity finance for our clients. Contact us to discuss your requirements and explore the options available to you.


I had the opportunity to undertake two developments and went to Oakmead to help secure funding for one. They were able to structure a facility with a mezzanine loan enabling me to split my money between both sites instead of just the one.”

Mr Porter

Oakmead Finance Ltd is a company registered in England and Wales.  Registered office: Lynwood House, Crofton Road, Orpington, BR6 8QE. Registered number: 09478864.

Mezzanine Finance facilities are not regulated by the Financial Conduct Authority.