What is a Second Charge Bridging Loan?

These are short term loans which are secured against a property which already has an outstanding mortgage on it. You might take out such a loan because you require instant funds to do some improvements on your property, a loft conversion and or an extension. As the main mortgage is not being repaid, the early repayment charges would not be paid making you a huge saving.

Latest Second Charge Bridging Loan Offers

View some of the latest offers from leading lenders.

Product BF160
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Interest Rate 0.75%Lender Fee 2%Max LTV 50%Max Term 12 MonthsMin-Max Loan £100,000 - £10,000,000Security Type Residential - 2nd chargeRegulated? Yes
Product BF17
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Interest Rate 0.75%Lender Fee 2%Max LTV 50%Max Term 24 MonthsMin-Max Loan £100,000 - £10,000,000Security Type Residential - 2nd chargeRegulated? No
Product BF20
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Interest Rate 0.83%Lender Fee 2%Max LTV 65%Max Term 12 MonthsMin-Max Loan £100,000 - £1,000,000Security Type Residential - 2nd chargeRegulated? Yes
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Once the required works are completed, then it will be possible for you to do a refinance onto a secured loan, which would move the debt to a lower interest rate. It may be the case that a secured loan might be difficult to obtain initially because lenders may be less willing to lend whilst extensive works are being carried out on a property.

With our assistance, we can help you secure a second charge bridging loan amount of £50,000 upwards.

Key benefits of taking out a second charge bridging loan:

  • You can obtain up to 70% Loan to Value or even 100% with additional security
  • You can borrow for up to 24 months
  • Interest rate charges start from 0.85% per month and interest can be rolled into the loan
  • No early repayment charges and any exit route will be considered
  • Non-status lenders –no income required as along as feasible exit route is provided.
  • Applies to regulated and unregulated
  • Adverse credit can be accepted
  • Loans are available throughout the U.K.

As mentioned above, second charge bridging loans are available from 0.85% per month. The lender will also typically charge a lender arrangement fee of about 2% of the loan amount.

Here at Finbud we can help you to complete a second charge bridging loan usually within 2 weeks. Please note that some first charge lenders may be unwilling to accept or approve of a second charge, but in these cases, rest assured as we have lenders who can still lend using an equitable charge to secure the loan.

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