A second charge bridging loan can be used as the solution for when you already have finance in place secured against a property, but additional funds are needed for a certain period of time. They can be used for residential bridging loans, even when there is an original mortgage on the property. This means we can also offer a second charge for buy-to-let properties also. Not only do we offer on traditional bridging products, but we are also in a position to offer it for those clients who live overseas on property in England and Wales and also on a Commercial/Semi-Commercial basis.
Offering a second charge bridging loan certainly allows customers that peace of mind when it comes to specialist finance, especially when it is used when time is of the essence.
How does a Second Charge Bridging Loan work?
When you take a mortgage out on any form of property, whether that be a residential property or commercial unit, this is known as a first charge. When you require additional funding, a second charge does exactly that. It does become the second priority in terms of repayment, so usually costs a little more to do, also with a reduction in the LTV amount issued by the lender.
Who can use a Second Charge?
At MFS, our dedicated underwriters ensure each application is reviewed individually, so our lending criteria does not change. You can see who we lend to here. We are specialists when it comes to complex cases and bridging, we understand that no two deals are ever the same and personal circumstances change.
How much can I borrow?
We offer second charge bridging loans up to a maximum of 70% LTV – This includes what is left on the first charge remaining on the property. In terms of monetary value, we would lend from £100,000 to £2,500,000*. The amount is usually less than the first charge, this is due to the second charge becoming second priority in terms of the repayment of the loan.