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 BF160Apply Now |
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| Interest Rate 0.75% | Lender Fee 2% | Max LTV 50% | Max Term 12 Months | Min-Max Loan £100,000 - £10,000,000 | Security Type Residential - 2nd charge | Regulated? Yes |
Product BF17Apply Now |
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|---|---|---|---|---|---|---|
| Interest Rate 0.75% | Lender Fee 2% | Max LTV 50% | Max Term 24 Months | Min-Max Loan £100,000 - £10,000,000 | Security Type Residential - 2nd charge | Regulated? No |
Product BF20Apply Now |
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|---|---|---|---|---|---|---|
| Interest Rate 0.83% | Lender Fee 2% | Max LTV 65% | Max Term 12 Months | Min-Max Loan £100,000 - £1,000,000 | Security Type Residential - 2nd charge | Regulated? Yes |
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.
