What is a bridging loan?
A bridging loan is a short term secured loan. Property buyers can use it to “bridge” the gap between the purchase of a new property and the approval of a traditional mortgage, the sale of the new property or the release of capital from an existing property.
A Bridging Loan could help if you:
- You want to move, haven’t sold your current home, and need to buy your new home quickly
- You want to purchase a property at auction
- You’ve lost your buyer but don’t want your new purchase to fall through
- You want to purchase a property that is currently un-mortgageable
- You want to purchase land so you can self-build a property
Some Bridging Finance is not regulated by the
Financial Conduct Authority
What is a Second Charge?
A second charge – is a mortgage that’s secured against a property which already has one mortgage on it.
The second mortgage will be separate from your original mortgage and you will need your existing lender’s permission to secure one. Whether you can get a second charge on your home will depend on your income, how much equity you have in your property and whether your existing lender will allow it.
A Second Charge could help if you:
- Want to avoid re-mortgaging because your mortgage has ERCs (early repayment charges)
- Have a great deal on your current mortgage that you want to retain
- Your current lender won’t consider a Further Advance to raise extra funds
- Are finding it difficult to arrange some form of unsecured borrowing
We do not advise on any other second charge mortgages. If you need a second charge mortgage we will refer you to a master broker for second charges, who will be able to advise you.
Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.