Access flexible mezzanine funding with Money Pilot UK — bridging the gap between senior debt and equity to fuel growth for property developers and investors across the UK.
Mezzanine Finance with Money Pilot
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Flexible Capital for Growth Projects
Money Pilot provides structured mezzanine finance that complements existing debt or equity, helping developers scale projects without losing ownership.
We connect you to specialist lenders offering fast approvals and transparent terms for complex funding stacks.
Money Pilot streamlines mezzanine funding for acquisitions, refinances, and growth. We align senior debt, mezz, and equity to fit your stack—balancing risk, covenants, and cost.
With clear documentation and lender competition, you secure flexible capital without slowing momentum.
It is a loan layer between senior debt and equity that helps fund projects beyond bank limits without giving up ownership.
Mainly developers and property companies undertaking mid-to-large schemes who need extra capital alongside senior loans.
Usually after senior debt from sale proceeds or refinance once the development is complete and stabilised.
They’re higher than senior debt but lower than equity returns — balancing risk and flexibility.
Yes — we blend mezzanine with equity for efficient capital stacks and better IRR.
No hidden fees. Our model is fully transparent for clients.
UK mezzanine loan sizes typically range from £500,000 to £20 million or more depending on the project GDV. The mezzanine layer normally represents 10–20% of total GDV, with the maximum combined debt (senior plus mezzanine) capped at 75–80% of GDV by most lenders. Money Pilot compares specialist mezzanine lenders across this full range at zero broker fees.
A second charge mortgage is a regulated product secured on a property the borrower lives in. Mezzanine finance is an unregulated commercial lending product secured on investment or development property. Mezzanine requires an intercreditor agreement with the senior lender and is used specifically to bridge the funding gap between senior debt and equity in a property development.
Yes — mezzanine finance is widely used in residential property development alongside senior development finance. It is suitable for ground-up new build schemes, large conversion projects, and refurbishments where combined project cost exceeds what senior debt alone can fund. Money Pilot arranges mezzanine finance for both residential and commercial development projects.
Mezzanine finance typically takes four to eight weeks to arrange from initial enquiry to drawdown — longer than standard bridging because of the intercreditor agreement negotiation between senior and mezzanine lenders. A specialist broker who has managed multiple intercreditor negotiations significantly compresses this timeline.
Yes — on larger schemes all three layers are often used simultaneously. Senior development finance provides the bulk of funding at the lowest cost. Mezzanine fills the gap between senior and equity. JV equity finance provides the remaining capital in return for a profit share. Money Pilot structures all three layers simultaneously.
Money Pilot compares specialist mezzanine lenders across the full UK market — matching your project GDV, combined LTV, exit strategy, and developer track record to the right lender. We coordinate the intercreditor agreement between senior and mezzanine lenders and manage both facilities through to drawdown. Zero broker fees. FCA regulated (FRN: 968705). Call 020 4634 8617.
✅ What is mezzanine finance and how does it work in UK property development?
Mezzanine finance is a second-charge loan that sits between senior development debt and developer equity in the capital stack. It bridges the funding gap when senior debt alone does not cover total project costs - allowing developers to increase total leverage, reduce their equity contribution, and improve return on capital. Interest is typically rolled up and repaid at exit alongside the capital. Money Pilot arranges specialist mezzanine finance - FCA regulated (FRN: 968705), zero broker fees.
How mezzanine finance fits into the property development capital stack
Every property development project is funded from multiple sources stacked in layers. Understanding where mezzanine finance sits - and why it is used - is essential before deciding whether it is right for your development.
Senior development finance (first charge) - typically covers 60–65% of the Gross Development Value (GDV), provided by a specialist development lender at the lowest cost in the stack
Mezzanine finance (second charge) - bridges the gap at an additional 10–20% of GDV, sitting behind the senior lender under an intercreditor agreement
Developer equity (third position) - the developer's own capital contribution, reduced by the mezzanine layer, improving return on capital deployed
Bank of England held base rate at 4.25% in June 2026 - waiting for inflation to cool.
73% of UK SMEs expect to grow in the next 12 months - confidence remains strong.
Mezzanine finance rates and terms in the UK
UK mezzanine finance rates typically range from 12% to 20% per annum, depending on the combined LTV position, the project risk profile, and the lender. Terms typically match the senior debt term - ranging from 12 to 36 months for development projects. Interest is most commonly rolled up, preserving the developer's cash flow during the construction phase.
The intercreditor agreement - essential for mezzanine finance
The intercreditor deed is the legal agreement between senior and mezzanine lenders governing their respective rights and priorities. Without an agreed intercreditor, the mezzanine facility cannot drawdown. Money Pilot manages the intercreditor process for all mezzanine transactions alongside development finance. Zero broker fees. FCA regulated (FRN: 968705).
What mezzanine finance lenders look for
Specialist mezzanine finance lenders assess each application on the strength of the project rather than the borrower's personal financial position. Understanding their criteria before approaching lenders saves time and protects your credit profile.
Key mezzanine lender assessment criteria:
Project GDV - credible gross development value supported by comparable evidence and a monitoring surveyor
Combined LTV - total debt (senior plus mezzanine) must sit within 75–80% of GDV
Senior lender confirmation - the senior development finance must be agreed before mezzanine can proceed
Developer track record - completed schemes of comparable scale and type are expected
Exit strategy - sale, refinance onto investment finance, or a pre-agreed forward sale
Mezzanine finance sits between senior development debt and developer equity - bridging the funding gap at 10 to 20% of GDV and reducing the equity a developer needs to contribute.
Mezzanine finance - four elements every developer must understand
Before committing to a mezzanine finance facility, these four elements must be understood and agreed upfront. Each one directly affects the total cost, the drawdown timeline, and the exit outcome.
Mezzanine interest can be structured in three ways. Rolled-up interest requires no monthly payments - interest accrues throughout the loan term and is repaid alongside the capital at exit. This is the most common structure for development projects where no income is generated during construction. Retained interest deducts projected interest from the facility upfront, providing certainty of cost. Serviced interest requires monthly payments, reducing the total cost if the loan runs for the full term but requiring the developer to manage monthly cash outflows during the build.
Mezzanine lenders expect the developer to have meaningful equity in the project - typically 10–20% of total project costs. This contribution can take the form of cash invested, land equity already in the project, or profit from an earlier phase. Pure fee developers with no financial stake are viewed significantly less favourably by mezzanine providers.
Most mezzanine finance lenders require full planning permission to be in place before committing to a facility. Outline or pre-planning positions are considered by a small number of specialist lenders for experienced developers on strong sites, but attract higher rates and more conservative LTV positions. Having full implementable planning consent in place delivers the best terms and the widest lender choice.
Every mezzanine facility must have a credible and evidenced exit strategy. The three most common exits are: sale of completed units supported by agent valuations and comparables; refinance onto a residential or commercial investment mortgage; or a forward sale where a buyer has been identified before or during construction.
Bank of England held base rate at 4.25% in June 2026 - waiting for inflation to cool.
73% of UK SMEs expect to grow in the next 12 months - confidence remains strong.
Arranging mezzanine - the pairing decides the timeline
Mezzanine is never arranged alone: it sits behind a senior facility, and the two lenders must agree an intercreditor deed. Some senior-mezz pairs work together constantly on pre-agreed templates; ad-hoc pairings negotiate standstill clauses from scratch. Knowing the working pairs is half the product.
What matters
Single mezz lender / senior-only broker
Money Pilot
Funding lines
One mezz book, or senior-only
200+ lines including dedicated mezz funds and stretch alternatives
Combined leverage
Up to 90% LTC market standard
To 90% LTC - with the stretch-senior alternative always priced alongside
Intercreditor
Your solicitor's problem
Working senior-mezz pairs selected; deed negotiated alongside
Structure comparison
The product they sell
Mezz vs stretch senior vs JV equity - modelled on your scheme's numbers
Broker fee
Typically charged on structured deals
£0 - zero broker fees on every layer
Mezz, stretch senior, or JV equity - the three ways to fill the gap
The gap above senior debt has three fillers, and the right one is scheme-specific. Mezzanine: second-charge debt to ~90% of costs - you keep 100% of the upside, priced for its position. Stretch senior: one lender to 75–85% of costs at a blended rate - simpler and faster, no intercreditor at all, but stops short of maximum leverage. JV equity: a partner funds the equity layer for a profit share - the deepest funding, at the price of sharing the win.
The decision points: how much leverage the margin genuinely supports (mezz must live inside a 20%+ profit on GDV), how fast you need to complete (stretch completes like one loan; adding mezz adds 2–4 weeks), and whether keeping the whole upside matters more than minimising cash in. We model all three on your appraisal before you choose - and for commercial schemes and acquisition structures, see our commercial mezzanine finance page.
The zero-fee promise
Most UK brokers charge 1–1.5% of the loan as their fee. Money Pilot charges zero broker fees - we are paid by the lender, our whole-of-market comparison across 200+ specialist UK lenders stays free to you, and Miranda Khadr’s team is directly FCA regulated (FRN: 968705).
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