Mezzanine Investment Property Finance FAQs

• Who will you lend to?
• Which type of property is eligible for mezzanine investment finance?
• What is your maximum loan to value for mezzanine investment property finance?
• What is your normal repayment term?
• Do you offer variable rates or fixed rates?
• Do you arrange interest-only loans?
• Will you require a cross-collateral charge?
• What are your arrangement fees?
• What happens at the end of the repayment term?
• Are there any early repayment penalties?
• How fast can mezzanine investment property finance be arranged?

Who will you lend to?

We can arrange mezzanine investment property finance for sole traders, partnerships, LLPs, UK limited companies, offshore companies, trusts, charities and for individuals who complete a declaration of business use or a statement of high net worth.

Which type of property is eligible for mezzanine investment finance?

We arrange mezzanine finance for all types of investment property:

Residential Portfolios - new build and established properties - comprising houses, bungalows, flats/apartments.

Commercial - new build and establshed properties - hotels, pubs, restaurants, nursing & residential care homes, child nurseries, schools, professional practices, offices, retail parks, golf courses, mixed use schemes - and more.

What is your maximum loan to value for mezzanine investment property finance?

There are no hard and fast "loan to values" with mezzanine investment property finance. We do have general guidelines, but each investment property or portfolio will be assessed on its merits, such as:

1. Financial strength of the tenant;
2. Location, quality and condition of the property;
3. Length of the lease;
4. Rental yield

90% mezzanine investment property finance is still possible for good quality schemes. To get an idea of the level of funding available for your property or portfolio, have a look at our product terms & criteria page - or contact us with details of your investment property.

What is your normal repayment term?

Usually 5 - 20 years. Other terms may be possible; please contact us with your requirements.

Do you offer variable rates or fixed rates?

We can arrange commercial investment property finance with either a variable interest rate (linked to BoE base rate or LIBOR), fixed or swap rate, or capped rate; it's your choice.

Do you arrange interest-only loans?

Yes - we can arrange commercial investment property finance on either a standard capital and interest (amortising) basis, interest-only, or with a balloon payment option.

Will you require a cross-collateral charge?

This usually happens where you have other properties in your portfolio with surplus cashflow. You can offer a cross-collateral charge to provide additional security to the lender, in return for increasing the loan amount.

What are your arrangement fees?

We do not charge any up-front fees; our fee is only payable upon completion of the transaction.
Many clients do not have to pay us a fee at all. Instead, the lender charges an arrangement fee of around 1% and then pays us out of this.

We will provide a full fee quotation and disclosure of any commission payable when you request a quotation.

As usual you will be responsible for valuation fee and legal fees.

What happens at the end of the repayment term?

You will be expected to repay the loan in full. If you want to renew the facility please contact us 3 months in advance of maturity.

Are there any early repayment penalties?

Variable rate loans do not normally have an early repayment charge (ERC), unless you are within an initial discount period. Fixed, swap or capped rate loans are normally subject to an ERC within the product term.

How fast can mezzanine investment property finance be arranged?

We can usually agree an application in principle within an hour, which will be subject to valuation, legal searches etc. Completion of the loan is usually within 7-10 days, to tie in with the senior debt finance.