Second Charges

A second charge bridging loan could be the ideal solution for those who already have a mortgage secured against their property but require further funds for a short period of time.

Second charge bridging loans can be used for many reasons, such as purchasing an investment property, business expansion, or redevelopment of an existing property, to name but a few.

At MT Finance, we believe a second charge bridging loan is about empowering borrowers to take advantage of time-sensitive opportunities that can make or save them money.

MT Finance offers second charge bridging loans for investment or business purposes (if you are looking to take a second charge loan on your main residence, please note that MT Finance only offers second charge bridging loans for business purpose use only). We also take a view on all credit histories, including borrowers with CCJs and a history of arrears. We do not require personal guarantees, a minimum credit score, accounts or proof of income – instead, we are more focused on the property and your future plans.

Product Features:

  • Rates from 0.75%
  • Loans from £50,000– £10,000,000
  • Up to 70% LTV
  • Terms from 1-24 months
  • Residential & semi-commercial property
  • No up-front fees, no exit fees, no ERCs
  • No personal guarantees required
  • No credit scoring

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

To find out more about second charge bridging 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 be in touch with you shortly.

Quick Enquiry

What is a second charge bridging loan?

A second charge bridging loan could be the ideal solution for those who already have a mortgage secured against their property but require further funds for a short period of time.

Second charge bridging loans can be used for many reasons, such as purchasing an investment property, business expansion, or redevelopment of an existing property, to name but a few.

A second charge bridging loan 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 charge bridging loan will often require consent from the first charge lender and is usually more expensive than a first charge, reflecting the additional risk taken by a finance provider.

How can a second charge bridging loan with MT Finance help?

An increasing number of people in need of extra funds are turning to second charge bridging loans. These enable them to raise capital while not disturbing their existing attractive mortgages.

In a sustained low-interest rate environment, it often makes more sense for a borrower to release equity on a property by taking out a second charge, rather than the refinancing away from their current deal.

What’s more, bridging loan rates are lower than ever, with rates for second charges currently starting from 0.75% per month. If you are looking to take a second charge loan on your main residence, please note that MT Finance only offers second charge bridging loans for business purpose use only.

When are second charge bridging loans beneficial?

1. You are on a low rate/interest-only mortgage
Using a second charge bridging loan means you can keep your existing mortgage. There would be no changes to the existing mortgage terms and conditions. A second charge bridging loan could allow for more flexible repayment terms, potentially saving thousands of pounds in interest.

2. You are locked into a fixed rate with early repayment charges
If you must pay a large penalty for stopping/switching your existing fixed-rate mortgage early, a second charge bridging loan may be cheaper. The existing mortgage stays in place and the penalty is not charged. It would be beneficial to run a cost comparison in this scenario.

3. You are unable to secure further funds from your mainstream lender
Mortgage rules have become stricter in the past few years, with lenders applying tough ‘stress’ tests to ensure borrowers can meet repayments if interest rates rise. However, second charge bridging loan providers don’t rely on the same tests and can tailor a solution to suit your individual borrowing needs. Second charge bridging loans are also particularly helpful for those with unusual income structures, such as the self-employed, or those with complex financial backgrounds.

4. You needs the funds quickly
Where a mainstream bank may take several months to put together a loan for a borrower, MT Finance is often able to make lending decisions within hours of initial enquiry, so funds can be released quickly, sometimes even in less than two weeks. A second charge bridging loan can be a useful tool for those who simply need a rapid cash injection.