How Much Can I Borrow?
We can fund this method of finance from £25,000 with no strict maximum.
How Much Will It Cost?
Our second charge bridging loans are available from 0.85% per month. In addition to the monthly interest charges, the lender will usually charge an arrangement fee of 2% of the loan amount.
Monthly interest can usually be added to the loan, meaning there are no monthly payments to make.
How Long Do Second Charge Bridging Loans Take to Complete?
We can usually complete the process in 5 – 14 days, where consent from the first charge lender is forthcoming. Where first charge lenders are unwilling to consent to a second charge, we have lenders who can still lend using an equitable charge to secure the loan.
How Will My Application Be Assessed?
The key considerations when lenders are assessing your application is the loan to value (LTV) and the security offered.
Where the LTV is low and the security is strong, the application process tends to be far simpler. This is because the loan is considered to be lower risk for the lender.
They will then assess the property using a valuation report, produced by a chartered surveyor.
Depending on the planned exit, the lender may also want to see the following:
- Proof of income
- An agreement in principle for your proposed refinance
- Details of works to be completed where refurbishment is planned
Will My First Charge Lender Have to Give Consent To A Second Charge?
Although this is not always the case, consent to a second charge is usually required to allow the lender to register their charge against the property.
Where this is not possible, some lenders can lend without this, and will register their interest using an equitable charge.
When a lender is using an equitable charge, the interest rate may increase due to higher risk.
Can You Offer Bridging Loans for People With Bad Credit?
Bridging finance lenders are generally more flexible than residential mortgage or buy to let lenders.
Not all are willing to offer second charges to those with bad credit. As the market is already limited, some borrowers with adverse credit may find it harder to secure this type of loan.
This is especially true of applications where the planned exit strategy is to refinance to a term loan. In this case, the lender will want solid proof that the refinance will be acceptable to the proposed new lender.
Despite the above, we can still offer loans to people with adverse credit history in many cases.