Be they first legal charges or otherwise, when it comes to loans that are secured against the value of your home, or a property you own for any purpose, it is important to take the time and care to ensure everything works as best as it can for you, your finances and the property in question.
First Charge Loans with MT Finance
With so many bridging finance options available, we know the application process can be overwhelming. To make things hassle-free, our expert consultants work with you to tailor a solution to suit your individual borrowing needs.
MTF is a multi-award winning bridging finance lender and we have many year’s experience and know-how when it comes to first legal charges. We assess every single application for a first charge loan on a case by case basis, assessing each case on its own merits. Our flexible approach means we can structure your first charge bridging loan to your exact requirements, and allows us to make quick decisions and deliver funds at speed.
MTF is a ‘non-status’ lender, meaning we do not take your status into account, so credit history or details of income are not as relevant. Instead we focus on the property and your future plans. This allows us to take a practical, common sense approach to lending. We will take a view on CCJs, defaults and arrears and we do not require evidence of trading history, accounts or proof of income.
We also do not charge any exit fees or early repayment fees, and do not have any lengthy and tedious application forms for you to fill out.
- Rates from 0.89%
- Loans from £100k – £5m
- Terms from 3-24 months
- Up to 70% LTV
- Buy-to-let, commercial & semi-commercial assets*
- Serviced & retained interest options
- Lend on open market value
- No up-front fees
- No exit fees
- No early repayment charges
- No credit scoring
- No personal guarantees required
Please note MTF is an unregulated lender so it is a strict condition of a first charge loan that you (and/or any family member) shall not live or intend to live in the property.
Start Your Application Today With MTF
Apply for a first legal charge with us today and we will guide you through the whole process. Because we are asset-based lenders, we won’t base our decision on your credit history. Furthermore, our entire application process is quick and easy and with highly competitive interest rates and no upfront fees, we offer a fast, transparent and stress-free service.
Get in touch with us by calling 0203 051 2331, our team are on hand to discuss your first charge bridging loan enquiry and will be happy to answer all your questions and allay any concerns. We are the experts, here for you.
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**Please note, if you are enquiring about a FIRST CHARGE LOAN, mtf is an unregulated lender so it is a strict condition that you (the borrower) and/or any family member shall not live, or intend to live in the property.
First Legal Charge Case Study
Client’s circumstances: Applicants had exchanged contracts to purchase a leasehold flat in a desirable part of London off-plan from the developer for £500,000. They had applied to their lender for a mortgage which had been approved in principal but the applicants had not yet received the formal mortgage offer.
Meanwhile, a Notice to Complete had been served by the developer with a strict time clause so that if completion did not occur by Friday at 1pm the deposit would be forfeited, and the developer would be free to sell the newly completed flat at a higher value on the open market.
MTF solution: MTF was faced with less than 24 hours in which to complete the transaction. We had the benefit of an earlier valuation report and knowledge of the local area so were able to issue terms on the same day with an offer of a £420,000 bridging loan, based on an open market value of £600,000.
The benefits: With 26 minutes to spare and in less than 24 hours, MTF managed not only to save the applicants from losing their £50,000 deposit, but equally losing £100,000 of profit between the exchange price and today’s open market value.
What is a First Legal Charge?
A first legal charge is the principal loan on a property, designed to help you achieve your short-term financial goals. In the case of first legal charges, the lender of that particular finance takes precedence above all others; being the principle lender of that loan, whether it is a bridging loan or anything else.
Secured against the value of your property, a first legal charge, more often than not is the a mortgage rather than a ‘loan.’ Lenders tend to have a limit on how much they will lend as part of a first legal charge. They will often set a ‘maximum threshold,’ for example up to 75% of a property’s overall value, so that if the borrower defaults on repayments, they will be able to recoup their losses and what is owed through the property’s value.
What this means in practice is if there is a property valued to be worth £800,000 and the owner wishes to take out a first charge loan, the maximum a finance provider will offer, based on that particular property, is unlikely to be more than £600,000, or 75% of the total value of that property. The difference in equity (in this case £200,000) which remains after the value of the first charge loan may be used for second legal charges, depending on the proprietor’s finances, the wider property market and the property in question’s value.
MTF is an award winning bridging finance provider and has a team of experts who will carefully guide you through the whole process from start to finish.