Sourcing Your Mezzanine Finance

No upfront fees |  Up to 90% loan to cost | Terms 12 to 24 months | Second charge, 100% secured on property

25 years experience

We are expert in property mezzanine finance. Lee Robinson will review your plans, cash flow and deal structure with you.

150+ lenders

We search the lender market for the banks who are most suited to your property mezzanine finance deal. You choose from a shortlist of lending banks.

Get your finance in place

We package your mezzanine finance deal efficiently and get money in place for you.

Try our 60 second free Bridging Quick Check™.  Instant results. No email needed.
Indicates how easily you could get unregulated bridging finance.

Bridging Quick Check
  • Start
  • Development Q's
  • Bridging
  • Adverse Credit
  • Results/Submit

Free CLCF Bridging Quick Check™ tool. Our scoring algorithm indicates how likely you might obtain bridging finance!
Takes 60 seconds. Instant results. No email needed.

Will you or your family live in the property you are building or developing?
Do you or your family want to live in the property or asset you are buying?

Regulated bridging finance

You've told us you wish to develop or buy an asset for either you or your family to live in.

This means your bridging finance must be sourced through a FCA authorised intermediary. Our parent company Charles Louis Mortgage Advisers Ltd is directly authorised to source regulated bridging finance. FCA number 759660 ( Link opens new tab )

If you complete this form and submit your enquiry, it will go through to our parent company and one of the regulated bridging finance team will get in contact with you shortly to offer you some competitive bridging finance options.

For regulated bridging finance, please contact our FCA directly authorised parent company Charles Louis mortgage advisers. Visit: Charleslouis.co.uk  | Call: 0161 959 0166 | Email:

 

 

CLCF Bridging Quick Check™ uses a simplified credit rating scoring algorithm, factoring in loan to value, creditworthiness and other variables. By answering  questions, you get representational feedback on how likely you are to obtain bridging finance.

If you experiment with different loan to value ratios or other scenarios, the CLCF Bridging Quick Check™ will give you different scores. As a guide for score results:

  • 0: Difficult to get bridging finance.
  • 1-15: Deals will be available.
  • 16-40: Deals will be available, but not always on the best terms.
  • 41-70: Good deal availability. Reasonable terms.
  • 71-100: Excellent deal availability. You can get better than published terms.

 

Regulated bridging finance. If you are buying a property for either you or your family to live in, or you are securing bridging finance against your home, it becomes a regulated bridging loan. Bridging Quick Check™ is only applicable for non-regulated bridging finance.

For regulated bridging finance, please contact our FCA directly authorised parent company Charles Louis mortgage advisers. Visit: Charleslouis.co.uk  | Call: 0161 959 0166 | Email:

It’s a free deal negotiation service where we match the right borrowers with the right lenders to negotiate best rates and/or deal structures.

Banks have tranches of money with stipulations around how the money is to be lent. They also have different specialisations. Some lenders prefer financing developments whilst others prefer financing auction purchases.

If we can match the right borrower with the right lender, we can generally give the borrower a better than published deal.

Lenders will publish rates based on a typical risk and return profile they are prepared to accept when lending money.

We can present lenders with a ‘perfect’ borrower and lending proposition that matches their optimal lending criteria. If these lenders want your business enough, they will make a ‘better than published’ deal offer to you.

The key to ‘better than published’ deals is matching you up with the right lender, then negotiating hard on your behalf.

Many commercial finance advisers charge a ‘broker fee’ along with a ‘product fee’.

A broker fee is a discretionary charge which some finance brokers try to charge you for their advisory services.

A product fee is the money a lender will pay to the finance broker in return for helping to ‘package’ bridging finance applications before being sent to the lender. If someone goes direct to a lender, the product fee is still charged. So it makes no difference whether a borrower goes direct to a lender or not. The fees and rates will be the same.

We DO NOT charge a broker fee for any bridging finance. Reiterating: we charge £0.00 . Broker fees for bridging finance.

If another commercial finance adviser can get you bridging finance with better rates than us, we will discount our product fee by 75%.
Or if you have already placed bridging finance through us. And a competing adviser has got better rates than us within 14 days of your bridging finance being placed, we will discount our product fee by 75%.

This guarantee assumes:
– The competing commercial finance adviser is using the exact same finance application as we are
– You have quotes from the same lender as we have chosen
– You have legally verifiable proof to show the other adviser has a better bridging finance interest rates than us

If you used a broker who charged a broker advisory fee, then it would be cheaper for you to go direct to a lender. We DO NOT charge an advisory fee. To be clear: we charge £0.00 advisory fee. We do receive a ‘product fee’ usually around 2% of the total sum borrowed. If you went direct to the lender. They would not give you a 2% ‘product fee discount’. In other words, you would get the finance for the same cost as going through us.

In return for the ‘product fee’ from lenders, we help you find the best lender who will offer the best rates and best overall deal.

Then we help ‘package’ your application so it gets processed quickly and efficiently.

We always tell you about every cost which may arise when taking a bridging loan. These costs can include lender arrangement fees and exit fees. We will always itemise the costs for you so you can compare the overall cost of finance.

Why Charles Louis for
Mezzanine Finance?

Our FCA regulated team are ready to provide robust financial and developmental advice, willing to work around the clock
to ensure your investment goals are actualised.

Highly experienced

We have been in financial
services for 25 years. 

Fast turnaround

We have efficient processes for processing complex mezzanine finance deals.

Whole market access

We have 150+ lenders who we can
access for best finance deals.

3 steps to your mezzanine finance

We make finding your mezzanine finance easier and simpler for you.

Review your case

We are expert in property development finance. Lee Robinson will review development plans, cash flow, deal structure with you.

Find the right lenders

We search the lender market for the banks who are most suited to your type of property development. You choose from a shortlist of lending banks.

Get your finance in place

We package your mezzanine finance efficiently and get money in place for your development.

FAQ

Have questions? Read our FAQs to get answers to some questions you may have about our services. 

Our main criteria:

  • Residential property: houses, flats, new build, conversions and mixed-use
  • Property with a commercial aspect considered
  • Property in England, Scotland and Wales in areas with strong demand
  • Sites to have outline planning in place.

Mezzanine development finance is effectively a top-up loan used to cover the finance gap between the developers available cash deposit and the loan available from the senior lending bank.

Mezzanine lenders will generally secure their position by taking a 2nd charge over the development to reduce their risk of financial loss.

Property developers often take out mezzanine finance in order to reduce deposit contribution, which in turn improves their return on investment.

mezzanine finance is a relatively expensive form of finance. Interest rates generally start at about 10% per annum, but rates can go up as high as 30% if the project is seen as extremely risky.

Borrowing costs usually correlate with risk. Mezzanine financing is usually 2nd charge financing and so is much more risky than first charge financing on project. This is why interest rates are so high.

Mezzanine finance is a very specialist area. Funding is always done on a case-by-case basis. Pricing will usually depend on the following factors:
  • Amount of deposit from the borrower. Larger is better.
  • Likely demand for the finished property development. Easier to sell is better.
  • The project that you’re building. More straightforward is better.
  • The strength and experience of the borrower/developer. More experiences better.
  • The location of the project. More desirable location is better.
  • The amount of funds required. the optimal loan size for the lender.

Senior development finance
Senior development finance/1st charge development loan more commonly works alongside mezzanine finance. This type of finance is offered at a lower rate, with a lower loan to gross development value (LTGDV) and loan to cost (LTC).

Ideally you would find the right senior development finance lender who would give you a high enough LTGDV/LTC so you don’t have to use mezzanine finance.

Stretch senior development finance 
Stretch senior funding is designed for those who want to borrow more than would typically available from traditional senior debt. These loans can cover up to 80% of costs.
The main benefit of stretched senior finance; you can keep all your financing with one lender which simplifies borrowing.

Joint venture development finance
The developer aims to have the lender found 100% of the project cost. The price you pay for not putting any of your own money into the project is a profit share. Most joint venture development finance funders expect a 50/50 profit share on sale of the completed units.

What fees can I expect with mezzanine finance?

Broker fee 
This varies between brokers. Some brokers do not charge a fee and rely on receiving commission from lenders when the loan completes. Other brokers may charge a fixed fee, or a percentage of the total loan value. We don’t usually charge a broker fee. 

Application fee
Some lenders and brokers charge for submitting an application. Every development project is different. Sometimes finance applications can be extremely complex. If they take a lot of work to ‘package’, we may ask for an application fee. This is always on a case-by-case basis.

Valuation fee
Lenders may want an independent valuation of your property development proposal. If so, a surveyor will have to be instructed and paid by you.

Arrangement fee
Often calculated as percentage of the total cost of the loan. These arrangement fees vary substantially from one lender to another. They are typically between 2% and 4% of total sum borrowed.

Monitoring fees
Development projects are monitored for progress and this typically involves an administration cost.

Draw down fees
A fee charged whenever a new instalment of funds is transferred to the borrower

Legal fees
If needed, borrowers will have to pay for legal costs such as hiring a solicitor or qualified legal advice

Exit fee
Often calculated as a percentage of the total cost of the loan.

Administration fees
Any additional costs charged by either lender or broker

"I can’t recommend these guys enough! Having used them several times over the past few years.”
Ross Kellett
Charles Louis customer

Contact CLCF for the best mezzanine finance deals in the UK!

Lee Robinson
MD CLCF
Maximise your finance deal today.

Located in central Ramsbottom

Head office: 
54 Bolton Street, Ramsbottom, Bury, Lancs, BL0 9HX

30 mins from central Manchester

Commercial Finance Office:
 54 Bolton Street, Ramsbottom, Bury, Lancs, BL0 9HX