1st Charge lending
A first charge bridging loan is where the lender takes a first charge over a property above all others. This is usually done when a purchase takes place but can also be used to remove an existing charge, raise capital on an unencumbered property and for other purposes.
This is the cheapest form of bridging as lenders will offer their best rates to clients, as it is the best form of security the lender can achieve.
2nd Charge lending
We also offer second charge bridging loans where we take a charge behind another lender normally a mortgage but it could me another bridging loan or means of finance. We consider everything and look at each case on it merits.
The rates will increase with 2nd charge lending due to the fact the lender is taking more of a risk but it is still readily available, the main thing we consider with this form of lending is a sound exit strategy.
Commercial lending
A commercial bridging loan is not that different to a standard residential bridging loan it’s just taken out on commercial property It is normally used to complete on one property whilst awaiting the sale of another. Commercial bridging loans can also be used when a commercial property has been purchased at auction when completion is required within 28 days. Commercial bridging loans can also be used for quick finance to keep it going, pay tax or some other bills when their cash flow is low.
First and second charge lending can be undertaken against commercial properties but just like all commercial borrowing it will be slightly more expensive. We also offer semi commercial loans where the property is split between residential and commercial.
Purchasing at Auction
If you are looking to buy a property at auction but don’t have the required funds necessary to make the purchase, then one of the best options is to use a bridging loan. The loan must be applied for and agreed before the auction the client is in a position to purchase the property if their bid is the highest.
You can use other properties as security if you need to raise additional funds for the purchase or for redevelopment of the property. |
