The Blended Senior and Junior Debt Rate represents the combined cost of borrowing where a property development project uses both senior debt and junior or mezzanine debt. Calculated as a weighted average based on each tranche’s size, it provides a single metric for assessing total interest exposure. This rate helps UK property developers evaluate financing structures, compare funding options, and stress-test project returns under property development finance UK scenarios. By reflecting the overall cost of capital, it informs risk assessment, loan structuring, and project feasibility for SME developers managing multiple debt layers in development finance deals.
This sits beneath Blended Leverage Metrics, introducing a more specific variant of the measure without changing its core interpretation. It is commonly considered alongside Blended Debt Service Coverage Ratio, as both are closely related measures used to assess similar aspects of performance or risk.
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