First Charge Loans

A first charge short-term loan is a 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 finance takes precedence above all others; being the principal lender of that loan, whether it is a bridging loan or anything else.

Secured against the value of your property, a lender will 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 a property is valued to be worth £800,000 and the owner wishes to take out a first charge loan on an investment property, the maximum a finance provider will offer, based on that particular property, is unlikely to be more than £600,000, or 70% 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 a second charge loan, depending on the proprietor’s finances, the wider property market and the property in question’s value.

Common uses of a first charge short-term loan include the purchase of an investment property where time is of the essence, completing refurbishments on an investment property, and investment property chain breakers to name but a few.

Acceptable securities include investment property, commercial property (including offices, retail units, pubs, hotels and B&Bs), semi-commercial property, multi units, HMOs and student accommodation.

Product features

  • Rates from 0.75%
  • Up to 70% LTV
  • Loans from £50k – £10m
  • Terms from 3-24 months
  • Asset-based decisions
  • No personal guarantees required
  • No exit fees / no ERCs

At MT Finance, we believe a short-term first charge loan is about empowering borrows to enable them to take advantage of time-sensitive opportunities that can make or save them money

With no early repayment charges or exit fees, MT Finance will always help you access the most competitive rate, tailoring a solution to fit your financial requirements.

To find out more about first charge short-term loans, or if you have a project you wish to discuss, contact one of our short-term loan experts today on 0203 051 2331 or fill in our contact form and someone will contact you shortly.