An increasing number of people in need of extra funds are turning to second charge bridging finance to purchase investment properties, inject capital into businesses, or make refurbishments in order to prevent disturbing their existing attractive mortgages.
At MTF, we believe a second charge bridging loan is about empowering borrowers, to enable them to take advantage of time-sensitive opportunities that can make or save them money.
Second Legal Charges 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 second legal charges. We assess every single application for a second charge loan on a case by case basis, assessing each case on its own merits. Our flexible approach means we can structure your second 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 0.95%
- Loans from £100k – £3m
- Terms from 3-24 months
- Up to 65% LTV on open market value
- Residential* & buy-to-let assets
- Serviced & retained interest options
- 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 the loan that if the second charge loan is secured on a residential property, it must be for business purposes only.
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 second 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 MTF is an unregulated lender so it is a strict condition of the loan that you (the borrower) and/or any family member shall not live, or intend to live in the property.
Second Charge Case Study
Client’s Circumstances: Client was looking to raise £150,000 to set up a fashion business. Her mortgage lender wouldn’t agree to a further advance and it was not financially viable to remortgage as the existing mortgage was on a competitive standard variable rate and the client didn’t want to disturb this.
MTF Solution: The client owned a buy-to-let property worth £1.25m with an existing first charge of £450,000. We were able to secure a £150,000 second charge bridging loan over a 12 month term at 48% LTV.
The Benefits: The client was able set up her fashion business, using the funds to pay for her initial operating costs and the 12 month term gave her plenty of time to arrange and secure a business loan with a bank, in turn settling the bridging loan.
What is a Second Legal Charge?
A second charge bridging loan is secured against a property that already has an outstanding loan or mortgage. If, after the initial mortgage or loan secured against a property, there is enough equity left in the property itself to secure another loan against, a second legal charge may be taken out.
A second legal charges can be secured on all property types, including buy-to-let, residential and commercial assets, and typically has a 12-month maturity, unlike a secured loan which is a form of longer-term financing.
As it sits behind a first charge loan, a second legal charge will require consent from the first charge lender and is usually more expensive, reflecting the additional risk taken by a finance provider.
If you are considering taking out a loan like this, it is typically because you are, or will be working towards an important financial goal and getting the right financing in a timely manner. When properly and responsibly utilised, second legal charges can be a powerful and very beneficial tool to your life and your future.