In property finance, the best exits are straightforward. A development completes, units are sold, or a bridging facility rolls seamlessly into a long-term mortgage. But as we explored in The Cost of a Failed Exit, reality often refuses to cooperate. Sales slow, valuations disappoint, or refinancing hurdles emerge. When this happens, borrowers risk defaulting — not because their projects are poor, but because timing or market conditions are against them.
This is where specialist exit products prove invaluable. In 2025, second charges, mezzanine finance, and hybrid solutions have become essential tools for both lenders and borrowers. They provide time, liquidity, and flexibility where mainstream refinancing routes falter. For high-net-worth (HNW) borrowers and their introducers — wealth managers, accountants, and solicitors — knowing how these tools operate is no longer optional. It is the difference between protecting value and watching it unravel.
Second charge finance has long been seen as a niche product, but in today’s market, it is often the simplest way to preserve an exit.
Consider a developer who has borrowed £5 million via a first-charge bridging facility. The project completes, but unit sales are slower than forecast. The first-charge lender is unwilling to extend, and the borrower risks default. A second-charge lender can step in, secured against the equity remaining in the property. This additional facility might cover accrued interest, extend the time available to complete sales, or provide capital to reconfigure units for faster disposal.
The key attraction of second charges is that they do not disturb the first charge. The senior lender is repaid or protected, while the borrower gains the breathing room to execute a viable exit. Pricing is higher, of course, but the cost is usually a fraction of the financial and reputational damage caused by default.
In Second Charge vs. Further Advance: Which is Better in 2025?, we highlighted that while second charges are not always the cheapest route, they can preserve exits where all other options are blocked.
If second charges are about short-term breathing space, mezzanine finance is about filling capital gaps.
Mezzanine sits between senior debt and equity, allowing borrowers to leverage projects further without injecting additional personal capital. Imagine a developer who has raised £8 million of senior debt but requires £2 million more to complete works. Injecting personal funds may not be possible — or may not be the most efficient use of capital. A mezzanine lender provides that missing slice, taking higher risk and charging higher returns, but enabling the project to move forward.
At the exit stage, mezzanine can play a stabilising role. Where senior lenders cap leverage, mezzanine ensures borrowers can refinance or extend without losing control of the project. For HNW borrowers, this is especially valuable. Many would rather preserve liquidity for other investments, and mezzanine allows them to do so while protecting repayment timelines.
Crucially, mezzanine lenders are sophisticated. They analyse GDV, tenant demand, and market comparables with forensic detail. For introducers, guiding clients toward mezzanine facilities requires deep broker expertise. It is rarely a product that borrowers can access — or negotiate — alone.
The most innovative exits in 2025 are not built on a single product, but on combinations. Hybrid solutions blend senior debt, second charges, mezzanine, and sometimes even securities-backed lending from private banks.
Take, for example, an HNW borrower with a £20 million mixed-use scheme. The plan was to refinance on completion, but tenant demand has taken longer to materialise. The senior lender is pressing for repayment, and sales would destroy profit margins. A hybrid solution is arranged: a second charge facility provides immediate liquidity, mezzanine finance covers a capital shortfall, and a private bank secures an interest-only facility against the borrower’s global investment portfolio. Together, these elements buy time and stabilise the scheme until tenants are secured and long-term refinancing becomes viable.
This is not theory. Hybrids like these are increasingly common in London’s prime market, where projects are capital-intensive, borrower wealth is complex, and mainstream solutions fall short. As explored in Exit Finance for HNW Borrowers: Why Private Banks Matter, private banks often play a central role, underwriting against global wealth where others cannot.
Specialist exit products are not without drawbacks. Pricing is higher than senior debt, and borrowers must accept that stacking multiple facilities increases complexity. Used recklessly, these products can compound problems rather than solve them.
But when deployed strategically, they are far less costly than default. A second charge facility that buys six months of time, or a mezzanine loan that fills a £2 million gap, can preserve tens of millions in project value. For introducers, this is where their role becomes crucial: identifying when specialist products are appropriate, and ensuring they are structured responsibly.
As we emphasised in Last-Minute Exits: Can You Still Save the Deal?, even borrowers facing imminent maturity can salvage outcomes with the right tools — but only if they act early and with expert support.
For wealth managers, accountants, and solicitors advising HNW clients, specialist exits highlight the importance of proactive structuring. A client who approaches their adviser with a looming maturity and no plan needs more than reassurance. They need solutions that preserve capital, protect reputations, and ensure continuity.
Introducers who can guide clients toward brokers with access to second charge, mezzanine, and hybrid markets add immense value. They become the difference between a client defaulting — with all the financial and reputational damage that entails — and a client exiting successfully.
In The FCA’s View on Exit Planning and Lender Responsibility, we noted how regulators emphasise “good outcomes.” Advisers who fail to consider specialist options may fall short of this expectation. Those who embrace them not only protect clients but enhance their own professional credibility.
At Willow Private Finance, we specialise in structuring complex exits. That includes:
Our experience ensures that solutions are not just available, but achievable. For borrowers, this means avoiding defaults and preserving long-term wealth. For introducers, it means the confidence of knowing clients are protected, even when conventional exits fail.
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About the Author — Wesley Ranger
Wesley Ranger is the Founder and Director of Willow Private Finance. With over 20 years of experience structuring complex exits, he has worked extensively with second charge, mezzanine, and private bank lenders. Wesley specialises in designing solutions that transform high-risk maturities into successful exits, protecting both HNW borrowers and their advisers.
Important Notice
This article is for information purposes only and does not constitute financial advice. Property finance carries risk, including the risk of default or repossession if loans are not repaid. Exit strategies should be assessed carefully and tailored to individual circumstances. Always seek professional advice before entering into any finance agreement. Willow Private Finance is directly authorised and regulated by the Financial Conduct Authority (FRN: 588422).
