OUR SOLUTION We have an excellent relationship with a lender I know is confident working with cases like this. I was able to illustrate that my clients’ business would be able to pay off the loan, meaning this lender was happy to offer him a second charge bridging loan of just under £200,000 for a 1-year term.
SECOND CHARGE BRIDGING LOAN FINANCE
If you require a second charge bridging loan
, it’s important to note that this will generally come with a higher interest rate than first charge lender, because second charges are inevitably more of a risk for lenders. You should also be aware that, just like a first charge, your home could be at risk if you don’t keep up with your payments.
However, second charges can be cheaper than remortgaging altogether—particularly if you currently have a fixed-term first charge mortgage at a low rate, which would invite Early Repayment Charges (ERCs) should you refinance.]]>