What Is A Second Charge Bridging Loan And Is It Right For You?

Spotted a great investment property or potential holiday let but falling short on the total funds?  Looking for a short-term cash investment for your business?  Or maybe you’re looking to refurbish a rental property to give it a new lease of life.  If this sounds familiar, then second charge bridging finance could be the solution for you.

A short-term lending product secured against a property that already has a mortgage outstanding, second charge bridging loans have become increasingly popular over recent years as the specialist finance sector has grown in popularity.  

The second charge refers to the fact that the lender’s charge over the security property ranks behind the main mortgage lender and has, ultimately, second priority.

So, is it a good option for you?  If your existing property has sufficient equity in it to warrant a second charge bridge loan against it then potentially, yes.

As the loan sits behind the existing mortgage, second charge loan rates are usually higher, as the risk to the second lender is greater.  They can however still be incredibly competitive, thanks to growing competition and confidence in the market.  

Perhaps the most common reason many people look to second charge bridging finance is however the speed with which the funds can be released; an important factor when looking to secure that in-demand property before the competition, or complete refurbishment works.  

Privately funded specialist finance lenders such as Mint Property Finance are also well recognised for often being able to say yes when mainstream banks say no, thanks to their ability to make decisions based on the individual case and circumstances, and not a pre-automated set of questions.

Available on loans for business use from £75,000 to £1million and with up to 70% LTV, for Borrowers looking for a short-term financing fix (any time up to 12 months is the standard lending criteria) then second charge bridging finance is an option worth considering. The first charge must be with a UK finance lender.

Interested in finding out more?  Get in touch at hello@mintpf.co.uk or 0161 710 2006 and discover if a second charge bridging loan might be a good option for you.

The key benefits of a 2nd charge bridging loan in summary:

  • Fast fund release
  • Increased odds of loan approval
  • Tailored to your individual needs

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