What is a mezzanine finance for dummies?

Mezzanine finance is a second-charge loan that takes total funding above the senior lender's ceiling for a higher interest rate and sometimes a profit kicker. Joint venture finance is equity that replaces the developer's contribution entirely, in exchange for a share of profit. Mezzanine is repaid as debt; a joint venture is paid from the outcome.

Bridging finance typically costs more than a mortgage and is priced monthly, not annually. Expect interest of around 0.6% to 1.5% per month, plus arrangement fees (often 1-2%), valuation fees, and legal costs. Total cost depends on loan length, risk, and structure.

PBSA finance is specialist property finance for purpose-built student accommodation: development finance to build or convert student schemes, and investment finance to buy, refinance or stabilise operational schemes, underwritten on the scheme's stabilised rental income, its letting model, its operator and its location rather than on residential comparables.

Flip finance is usually unregulated commercial lending, because the borrower does not live in the property. Occupation or intended occupation by the borrower or a related person can change that assessment; the lender must check the full regulatory position.

Yes, HMOs are harder to finance than standard buy to let properties. Lenders apply specialist underwriting, require evidence of correct HMO licensing and fire safety compliance, and typically offer lower maximum loan-to-value limits due to higher management, regulatory, and tenant risk.