Second Charge Bridging Loans

Bespoke second charge bridging finance

Second charge bridging loans provide borrowers with additional funding against a property that already has finance secured against it by another lender.

When you first lend against a property this is known as a 1st charge. If you require additional funding, we could provide a 2nd charge bridging loan to raise the finance. A ‘second charge’ means that there are now two lenders with charges against the property.

Our second charge bridging loans are available to clients who live in the UK or overseas, except sanctioned states.
All properties must be located within England and Wales.
We also supply second charges for commercial assets and buy-to-let refurbishments or purchases.

More product information

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Example of a 2nd charge bridging loan:

A homeowner with an existing mortgage looking to raise funds to refurbish their home before putting the property on the market. They are currently still paying off their mortgage. A 2nd charge bridging loan could be issued alongside the original form of finance. This would then provide the funds to renovate. To exit the loan, the buyer could use the sale of the property. They would first need to repay the first charge lender in full and then use the second charge lender once the sale completes.

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Try the MFS bridging loan calculator to estimate the amount you can borrow, interest and other costs. Just enter the market value of your property, any outstanding mortgage, the amount you’d like to borrow and the months you’d need the money for. The calculator is easy to use and you get instant results.

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Second charge bridging loans:

What you need to know

What’s the difference between a first charge and a second charge?What are the key benefits for using second charge bridging loans?Will I need to consult my first charge lender to apply for a second charge?Can I place a second charge on my home of residency?Can I still apply for a second charge if I have bad credit / adverse credit?How can I use my 2nd charge bridging loan?

First charge finance
A first charge relates to the principal finance provided by a lender, which is secured against a property before any other finance. Naming the lender as the ‘first charge’ means they will be the first to receive payment in the event of the sale of the building. They take precedence above any other charges on the same property.

Second charge bridging loan
A second charge relates to the second lender who uses a property as security when providing a loan. This means that in the event of the sale of the property, the second lender (the ‘second charge’) will settle their loan once the first charge lender receives their repayment. This can put the second charge lender at a greater risk of not receiving a repayment in full, or at all. For this reason, second charges usually have a higher rate than first charges.

Second charge bridging finance provide you with these 3 key benefits:

1) Fast finance
If you’re in need of finance quickly, then a second charge bridging loan could help. Mainstream finance and high street banks can take months to organise and release funds. Second charge bridging finance can help you utilise your current assets, without having to re-mortgage or change terms with your existing lender.

2) Securing finance for complex requirements
If you have complex circumstances, you may find it difficult to secure finance. Traditional lenders often have tick-box criteria to which they follow. In comparison, our second charge bridging loans are fast and flexible, meaning we can tailor them to suit your financial situation.

3) Unlocking equity
If you’re looking to utilise equity that you have collected on your property, but you’re locked into your current finance arrangement by an early repayment charge, then a 2nd charge bridging loan could be the solution. Using a second charge bridging finance means that the original first charge remains in place with no alteration. This gives you the financial freedom to raise the extra funds against your property, without incurring additional charges from your first lender.

Your first charge lender will need to provide permission for you to commence with your second charge bridging loan. The solicitors working on the case will consult with your first charge lender to gain the permission and allow us to find a solution that works for all parties involved.

Whilst we are an unregulated lender and therefore cannot supply first charge bridging loans on homes of residency, we can accept your residence as security for a 2nd charge bridging loan.

However, we still require an exit strategy for your second charge bridging finance. Failure to repay your bridging loan could lead to your home being repossessed. To mitigate against this, we will only supply our bespoke bridging finance once an exit strategy is agreed or is currently in place.

Yes of course – we provide bespoke second charge bridging loans on a case-by-case basis. This means that we look at the whole picture and take you and your property into consideration on individual merit. If you have adverse credit, we can still provide a second charge, depending on your property, your circumstances, and your exit strategy.

You can use second charge bridging loans for several different situations, for example:

Generating capital to invest in another asset, either in full as a cash buyer, or to provide a deposit
Raising funds to start refurbishment works on your property
Raising finance to start a new business venture, or expand a current company
Renovating an auction property with the aim to resell at a higher value
Refurbishing a buy-to-let asset to attract new tenants or repair wear-and-tear
Converting a commercial asset into luxury residential properties

Contact us

Speak to us on the phone, via chat or email about your case, however complex it might be. We have a friendly, dediciated team and one of our underwriters will be happy to help you with your query. We will try our best to say yes to you, instead of finding a reason to say no.

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Thank you Olivia and Imogen for helping us assist with the completion of two Buy To Let Mortgages. On to the next one! Kind Regards, Aakash

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Really excited to be working with MFS. Underwriter was busy throughout the application and it was difficult to get her on the phone, however our BDM Oli Watts was available throughout the process and that made it more efficient for us. If we were unable to get an update form UW Oli would get the info for us regularly.

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MFS, Thank you for giving all my clients an amazing service, Jemma, especially, she has been very professional and efficient since she joined MFS. She is a definitely a great asset to the company. Jemma, thank you and well done for all your assistance!

Maria

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Outstanding work on an urgent completion with a previous broker and lender failing to deliver. The team at MFS including Jeanne, Olivia, Kieron and others stepped up and ensured the client completed and avoided losing their deposit on a time sensitive matter. Nice work and onto the next few.

Kevin

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Working with MFS is an absolute pleasure. They are always in communication and so everything they can to deliver a seamless transaction within a short time and minimum fuss. All in all a very professional outfit. Working with Jemima Hyes and her team has been great.

Ripon Mahmood

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Exceptional service from a professional, diligent and creative team. In particular - a special thanks to Sonal who effortlessly simplified the complexity of the matter, maintained clear lines of communication and ensured overall transactional efficiency.

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Very tricky case, handled expertly by Jemma and the team, even though interest rates increased in the middle of the application, MFS ensured that any increase was as minimal as possible. Top effort and will be using MFS again

Craig

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As a mortgage broker, I have dealt with MFS several times and all successfully progress to completion on time. I have to mention that the BDM Zahira and the Underwriter Jeanne have been working really hard to make sure my urgent deals completed within the deadline and updated me several times a day so I am always aware whats going on. Top services.

Sabrina

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Very Satisfied with their service so far.

Anthony Lai

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Five Star Service Another bride company let me down with an unreasonable underwriter view, which cost my client two weeks, a valuation, and solicitor fees. My client needs to close the deal within three weeks. MFS has given me hope and taken the human thinking approach to overcome all the obstacles. Craig, Wayne, and Will provided excellent support (all calls were answered the same day). A big thanks go out to them. The whole team deserves five stars. Easy Financial Services LTD

AJIT SINGH

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I've had the pleasure of dealing with MFS in particular Imogen and Kieron. On each occassion from the initial phone call to discuss the nature of the case and sending across the enquiry form they have been proactive and quick to get the indicative terms issued. They are knowledgable and very helpful.

Amit Patel, Trinity Finance

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I have dealt with MFS for a long time as a Commercial Financial Broker. A great company to deal for all your short term funding needs. The speed, professionalism, communication and friendliness of staff are just great. I have dealt recently with Jemma who is always ready to help and sort out hurdles. Kieron and Richard are a few who i have dealt who brilliant. Also Paresh who is the CEO of MFS is a great person to deal. MFS always exceed expectations.

Victor

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Quality service and staff always willing to find solutions.

Danire

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We've had nothing but great service from Zahira and Kieron whilst working with MFS. It's a pleasure to work with a common sense lender who are efficient, dedicated, commercially minded and easy to communicate with. Thank you, and keep up the good work!

Chris Oatway

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First time I had introduced a client to MFS. MFS offer a freindly and efficient service, they are very competative and I will defenitley use them again. My client is very happy I introduced MFS to them.

John

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I have known Kieron and MFS for circa 4 years. Nothing is ever too much of a problem for Kieron and he is very quick to respond to my enquiries. A few months ago we completed two very tricky transactions in excess of a million pounds of Bridging and Kieron sorted out every question and query that we came across. Kieron’s ability to quickly refer up the line was also extremely helpful and he has access to the decision makers who without doubt have a 'can-do' attitude! I run a team of 5 Commercial brokers and I have recommended MFS to them on a number of occasions, so expect a plentiful supply of new business! Thank you to all at MFS, you are a great bunch!

Andy Elley

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Excellent experience once again with Sonal - quick response and follow up and clear instructions as to the required details and likely timing - all very straightforward

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