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 £2.5M over periods from 3 to 24 months. Our loans are secured on freehold property across England and Wales. Crucially   you   will   always   speak   to   a   decision   maker   who   will   take   time   to   understand   you   and   your   situation   and   unlike   some   of   the   bigger   banks   will   then tailor a solution that best suits your needs rather than their own. For a confidential discussion in the first instance contact us on:   Tel 03332 400 506   Email enquiry@centralbridging.co.uk Online
Central Bridging, Granary Wharf, Wharf Road, Burton on Trent, Staffordshire, DE14 1DU 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   £2.5M   over   periods   from   3   to   24   months.   Our   loans are secured on freehold property across England and Wales. Crucially   you   will   always   speak   to   a   decision   maker   who   will   take   time   to understand   you   and   your   situation   and   unlike   some   of   the   bigger   banks will   then   tailor   a   solution   that   best   suits   your   needs   rather   than   their own. For a confidential discussion in the first instance contact us on:   Tel 03332 400 506   Email enquiry@centralbridging.co.uk Online
Central Bridging, Granary Wharf, Wharf Road, Burton on Trent, Staffordshire, DE14 1DU 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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