Frazer Fearnhead

The House Crowd enters mezzanine finance market

The House Crowd has revealed that it is now offering mezzanine finance to borrowers.

The P2P lending platform has launched the product with lending available up to 90% loan-to-cost.

Frazer Fearnhead, founder and CEO at The House Crowd (pictured above), stated that the product would add an extra string to the lender’s bow.

“It's not something we're going to aggressively chase, it's just an extra string to the bow — it adds to what we're doing.

“I think there's definitely a market for it, because developers are continuing to find it hard to get finance.

“Banks are typically only lending up to 60% LTV, or 70% loan-to-cost and it's hard for developers to come up with all the equity they need.

“So that kind of bridge between what the senior debt is providing and what they can put in themselves as equity is an important part for them.”

Frazer added that it would provide this funding to “substantial” companies with a proven track record.

It has completed three deals since its launch with projects in Broxbourne, Hertfordshire, and Ashford, Kent, now fully funded on its platform.

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