BESPOKE BRIDGING LOAN

& SHORT TERM LENDER

SECOND CHARGE

BRIDGING LOANS

KNOWLEDGE BASE

Short-term,   business   use   bridging   loans   are   a   highly   flexible   and   adaptable   form   of   finance   enabling   companies   and   individuals   to   access   large   sums of money in days rather than the weeks and months that a conventional term mortgage might take. There   are   many   reasons   why   businesses   and   individuals   decide   to   opt   for   a   short-term   business   or   bridging   loan,   but   what   exactly   is   a   second   charge bridging loan? Second   charge   bridging   loans   can   be   obtained   if   the   mortgaged   property,   be   it   residential   or   commercial,   still   has   sufficient   equity   value   left/the   LTV   is low   enough   for   a   lender   to   consider   offering   a   second   charge   loan.   The   creation   of   a   second   charge   bridging   loan   will   usually   require   the   consent   of the   first   charge   lender   but   in   exceptional   circumstances   some   lenders   will   agree   to   a   “no   consent”   second   charge,   usually   when   the   loan   to   value   (LTV) is very low. The   second   charge   bridge   loan   is   considered   secondary   in   priority   when   compared   with   a   first   charge   loan.   In   the   event   that   the   borrower   defaults and   the   first   charge   holder   repossesses   the   property   the   first   charge   lender   will   recover   their   monies   first.   The   second   charge   lender   will   only   be   able to recover their outstanding debt when all the pending liabilities of the first charge lender have been repaid. Whilst   the   second   charge   lender   has   equal   rights   to   instigate   possession   proceedings   in   the   event   the   client   defaults   their   loan   (irrespective   of   the conduct   of   the   first)   they   still   have   to   ensure   the   first   charge   lender   is   redeemed   in   full   upon   sale   of   the   security   property   before   they   can   apportion any remaining funds to settle their own debt. The   greater   risk   and   typically   higher   LTVs   of   second   charge   bridge   loans   is   reflected   in   their   pricing.   They   are   usually   slightly   more   expensive   than   first charge   bridging   loans.   Second   charge   bridging   loans   can   be   particularly   useful   in   situations   where   redeeming   the   existing   first   charge   might   incur serious   redemption   penalties   or   the   existing   first   charge   lender   is   looking   to   materially   increase   the   rate   applied   to   a   new   larger   first   charge   loan.   A second charge bridging loan can therefore allow a highly competitive first mortgage to be left in place. Still unsure and need to explore your options? Why not consult an expert? Central   Bridging   are   bridging   loan   specialists   with   a   great   track   record.   We   are   a   principal   lender   offering   a   range   of   loan   facilities   for   business   use from   £250K   to   £50M   over   periods   from   3   to   24   months.   We   can   also   offer   medium-term   Base   Rate   Tracking   loans   from   2-5   years   duration.   Our   loans are secured on freehold property across England and Wales. You will always speak to a decision maker who will take time to understand you and your situation. For a confidential discussion in the first instance contact us on:   Tel 03332 400 506   Email enquiry@centralbridging.co.uk Online
Central Bridging, 34 Queen Anne Street, London, W1G 8HE Tel: 03332 400 506   Email: enquiry@centralbridging.co.uk   Web: www.centralbridging.co.uk Central Bridging is a trading style of Central Bridging Loans Ltd. Registered in England & Wales | Company Registration Number 07728274. Central Bridging is not regulated by the Financial Conduct Authority (FCA). All loans arranged by Central Bridging are non regulated contracts as defined under The Financial Services and Markets (Regulated Activities) Order 2001 and the Financial Service and Markets Mortgage Credit Directive Order 2015. © Copyright Central Bridging Loans Limited Privacy Policy
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BESPOKE BRIDGING LOAN

& SHORT TERM LENDER

Short-term,    business    use    bridging    loans    are    a    highly    flexible    and adaptable    form    of    finance    enabling    companies    and    individuals    to access    large    sums    of    money    in    days    rather    than    the    weeks    and months that a conventional term mortgage might take. There   are   many   reasons   why   businesses   and   individuals   decide   to   opt for    a    short-term    business    or    bridging    loan,    but    what    exactly    is    a second charge bridging loan? Second    charge    bridging    loans    can    be    obtained    if    the    mortgaged property,    be    it    residential    or    commercial,    still    has    sufficient    equity value   left/the   LTV   is   low   enough   for   a   lender   to   consider   offering   a second   charge   loan.   The   creation   of   a   second   charge   bridging   loan   will usually     require     the     consent     of     the     first     charge     lender     but     in exceptional   circumstances   some   lenders   will   agree   to   a   “no   consent” second charge, usually when the loan to value (LTV) is very low. The   second   charge   bridge   loan   is   considered   secondary   in   priority when    compared    with    a    first    charge    loan.    In    the    event    that    the borrower     defaults     and     the     first     charge     holder     repossesses     the property   the   first   charge   lender   will   recover   their   monies   first.   The second   charge   lender   will   only   be   able   to   recover   their   outstanding debt   when   all   the   pending   liabilities   of   the   first   charge   lender   have been repaid. Whilst     the     second     charge     lender     has     equal     rights     to     instigate possession    proceedings    in    the    event    the    client    defaults    their    loan (irrespective   of   the   conduct   of   the   first)   they   still   have   to   ensure   the first    charge    lender    is    redeemed    in    full    upon    sale    of    the    security property    before    they    can    apportion    any    remaining    funds    to    settle their own debt. The   greater   risk   and   typically   higher   LTVs   of   second   charge   bridge loans    is    reflected    in    their    pricing.    They    are    usually    slightly    more expensive   than   first   charge   bridging   loans.   Second   charge   bridging loans   can   be   particularly   useful   in   situations   where   redeeming   the existing   first   charge   might   incur   serious   redemption   penalties   or   the existing   first   charge   lender   is   looking   to   materially   increase   the   rate applied   to   a   new   larger   first   charge   loan.   A   second   charge   bridging loan   can   therefore   allow   a   highly   competitive   first   mortgage   to   be   left in place. Still   unsure   and   need   to   explore   your   options?   Why   not   consult   an expert? Central   Bridging   are   bridging   loan   specialists   with   a   great   track   record. We    are    a    principal    lender    offering    a    range    of    loan    facilities    for business   use   from   £250K   to   £50M   over   periods   from   3   to   24   months. We   can   also   offer   medium-term   Base   Rate   Tracking   loans   from   2-5 years   duration.   Our   loans   are   secured   on   freehold   property   across England and Wales. You    will    always    speak    to    a    decision    maker    who    will    take    time    to understand you and your situation. For a confidential discussion in the first instance contact us on:   Tel 03332 400 506   Email enquiry@centralbridging.co.uk Online
Central Bridging, 34 Queen Anne Street, London, W1G 8HE Tel: 03332 400 506  Email: enquiry@centralbridging.co.uk Web: www.centralbridging.co.uk Central Bridging is a trading style of Central Bridging Loans Ltd. Registered in England & Wales | Company Registration Number 07728274. Central Bridging is not regulated by the Financial Conduct Authority (FCA). All loans arranged by Central Bridging are non regulated contracts as defined under The Financial Services and Markets (Regulated Activities) Order 2001 and the Financial Service and Markets Mortgage Credit Directive Order 2015. © Copyright Central Bridging Loans Limited Privacy Policy
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SECOND CHARGE

BRIDGING LOANS

KNOWLEDGE BASE

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