Second charge bridging finance

Second charge bridging finance is a very useful product for borrowers who already have a loan secured against their property, but need further funds for a short period of time.

Funds can be arranged quickly and cheaply, without disturbing your current main lender’s terms. Income and affordability requirements are less rigid and, right now, lenders are very keen to lend.

We will assess all lending options with you to meet with your requirements – second charge lending is a product we are using more and more.

 

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Market Leading Second Charge Bridging Loans

Second charge bridging finance is typically used for capital-raising purposes, where repaying the original first charge mortgage with a new, higher loan to value loan would result in higher interest rates or early repayment charges.

A first charge is the primary mortgage or loan secured against a property, which takes precedence over all other finance secured against it. If there is sufficient equity in the property, then it is possible to secure a second charge against it as well. In certain situations, this can be a useful and sensible option.

Say, for example, you own half the equity in a commercial property worth £1m, and funded the remaining £500,000 by taking out a commercial mortgage. If you needed or wanted to release some of this equity, you could either remortgage, or take out a second charge loan without repaying the existing mortgage. The money can then be used for investment or business purposes.

If you are looking for a short-term cash injection, second charge bridging finance is something to consider. Our brokers will be able to explain the advantages and disadvantages to you in full.