Why use Mezzanine Financing?

By using mezzanine finance, developers can spread financial exposure whilst at the same time doubling the return on available capital AND increase property development capacity.

At Saxon Trust we offer

Funding of up to 20% of costs. Funding facilities from £1,000,000 to £1,500,000 +
Selection of prime lenders providing up to 70% of cost Mezzanine funding available from day 1
Decisions made in one week and provision of funding within 28 days
Competitive terms and rolled up interest

Why Use Mezzanine Finance?

By using mezzanine finance, developers can spread financial exposure whilst at the same time doubling the return on available capital AND increase property development capacity.

With mezzanine funding, developers are in a position to move onto their next development(s) while still completing current projects.  This can provide developers with a critical advantage at a time when competition for good development projects is extremely high.

In addition to increasing development capacity by carrying out two to three developments in the same period (with staggered commencement dates) the developer is in a position to spread their risk over more than one project at any given time.

Mezzanine finance could theoretically treble development capacity,  i.e. for every £100,000 of equity a developer has available, the “mezzanine contribution” could be £200,000

When using Mezzanine finance the return on equity (ROE) is virtually doubled on each development.  With mezzanine funding you can also:

Spread your risk

Increase your development capacity

Widen your development options

A Typical Developer Funding Example

Typical Project with a GDV of​ : £1,200,000

Total Costs : £1,000,000

Distributable Profit : £200,000
 

Without Mezzanine

Funding Example

Type

Financing

-

Net Profit

0

£700,000

70%

Senior Debt (Bank)

ROE

0

0

0%

Mezzanine Loan

£200,000

£300,000

30%

Developer Equity

With Mezzanine Funding

Funding Example

Type

Financing

-

Net Profit

0

£700,000

70%

Senior Debt (Bank)

ROE

0

0

0%

Mezzanine Loan

£200,000

£300,000

30%

Developer Equity

What are our developer Mezzanine funding lending criteria?

Developers with a track record
Residential development only
From a single house to a property development projects of 20+ units
Maximum loan period 12 months
The borrower’s exit strategy needs to be clearly defined

Interest from

1.00% pa

We offer market leading Interest rates from 1%

Your capital is at risk. Click here to find out more

Loan to Value (LTV)

80% pa

Developer Loans will be typically 80% LTV

Your capital is at risk. Click here to find out more

WHAT PEOPLE SAY

John, CFO

The whole process from start to finish was friendly and efficient plus I received a free Pen and cuddly fluffy toy that's awesome

John, CFO

The whole process from start to finish was friendly and efficient plus I received a free Pen and cuddly fluffy toy that's awesome

John, CFO

The whole process from start to finish was friendly and efficient plus I received a free Pen and cuddly fluffy toy that's awesome

Recent News

New House 

67-68 Hatton Garden

London

EC1N 8YJ

Tel:  + 44 (0) 208 0641 681

loans@saxontrust.com

Saxon Trust provides mortgage loans to non-owner occupiers for the purposes of business. Your property is at risk if you do not keep up repayments on mortgage loans. 

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Saxon Trust Ltd and ST Loan Services Ltd are registered in England & Wales at New House, 67-68 Hatton Garden, London EC1N 8YJ. ST Investment Services Ltd is an appointed representative of Capital Plus Partners Ltd which is authorised and regulated by the Financial Conduct Authority (FRN: 189495). Saxon Trust is a registered trademark.