Regulated Second Charge

Our regulated second charge bridging loan products are designed to help your client quickly unlock equity from their home, without disturbing their existing first charge mortgage.

Whether they need funds to gift to family members, for home improvements, consolidating debts, or to put towards the purchase of a new property, we can secure a second charge over residential and semi-commercial property.

With terms up to 12 months, coupled with zero exit fees or ERCs, we can give your client more time to capitalise on an opportunity whilst avoiding unnecessary charges.

Criteria FAQs

Do you offer AVMs?

Yes, we provide AVMs on bridging applications which meet the below criteria:

– regulated and unregulated bridging finance applications

– standard residential properties only

– available for first and second charges

– up to a maximum of 60% LTV

– up to a maximum property value of £750,000

– up to a maximum loan size of £450,000, including cases involving multiple securities

– minimum Hometrack confidence level of 5+

How will an AVM work at MT Finance?

Once we are satisfied that the property meets all our criteria, we will undertake an AVM. The report will be received in less than a minute. If the property has passed, then the full application will be sent to our underwriters and it can go straight to legals.

An AVM is free of charge and valid for up to three months.

Can an AVM be used for a second charge regulated bridging loan?

Yes, an AVM can be used on a second charge bridging loan, as long as the property meets all our criteria.

How much can my client borrow?

Your client can borrow between £50,000 to £10,000,000. However, we can consider amounts that fall slightly outside this.

What property types are acceptable?

The security must be in England or Wales and be wind and watertight. We will accept houses, flats, flats above a commercial property, and freehold flats as security.

What is your borrower eligibility?

We accept bridging loan applications from:

– those aged from 21-85 years

– LTD company/ LLPs/ Non EEA/ expats

– those with adverse credit, CCJs, or arrears

– first-time landlords

What are the loan terms?

Our loan terms on a regulated bridging loan range from a minimum of 1 month to a maximum of 12 months. In addition to this, there are no fees or charges for early repayment.

How long will it take to get the funds?

We can send you terms to review within one business hour. After that, a bridging loan application is typically completed within 2-3 weeks, but we can often deliver funds earlier, depending on your client’s circumstances.

What are the fees?

There are no exit fees or early repayment fees should your client wish to exit the bridging loan early. However, we do charge fees for the following:

– Valuation fee: this covers the surveyor’s costs for carrying out your client’s property valuation

– Facility fee: the cost of setting up the loan (2% of the loan)

– Administration fee: the cost of our administration of the loan

– Legal fee: usually charged at a set rate and pays our legal fees for completing the loan

What is your maximum LTV on a second charge regulated bridging loan?

We lend up to 65% on our regulated second charge product.

Do you always need consent from the first charge holder?

We will need consent from the first charge holder in order to register our second charge loan on the security property. However, if the first charge lender does not have a restriction noted on the title, we can proceed without consent.