A second charge bridging loan can be a very good option for anyone who already has a mortgage secured against their property, but requires further funds for a short period of time.
My clients were a married couple looking to sell their residential property based in Wimbledon. She had recently stopped working for health reasons and he had recently given up his job as an equity trader to retrain as an economics teacher. This meant their income had dropped substantially in quite a short space of time. Because of this, they were looking to rent a property close to his work once they had sold their home, while they looked for somewhere else to buy.
However, on top of the large monthly mortgage payments they were already paying, they had also built up £120,000 in unsecured debt, so they were in a fairly desperate need of a way to relieve some of this financial pressure – but were unsure how to go about finding it.
That’s where we came in. Having weighed up their options, we decided that a second charge bridging loan would be an ideal solution for these clients. This would be on a 12-month term and come with the interest rolled up, meaning they would not have to pay anything back until the end of the term.
This meant they would no longer have the monthly payments to worry about during the already stressful process of buying and selling. Once the sale was complete, they would then be in a better position to repay all their debts in full and until that point, the burden was lifted from their shoulders.
This a great example of how a second charge bridging loan can make a real difference to many clients and prove an option they simply had not considered before.