Borrowers

A bridging loan is a short-term interest-only loan available to those who need immediate access to capital. Usually used for a property purchase, it is a loan to ‘bridge’ the gap while other finance (such as a mortgage) is secured by the borrower or the property is sold.

We offer four different types:

• Regulated residential bridging
• Unregulated residential bridging
• Commercial bridging
• Bridge to let

Such mortgages are typically used by landlords or property developers, of all sizes and experience, to fund the purchase or redevelopment of a property they intend to rent out. 

The rent charged to tenants is then used to pay the mortgage – rental income from the property should more than cover the monthly mortgage payments. ‘Top slicing’ can also be considered, which is the use of other forms of income to help cover the repayments.

This is an additional loan on top of an existing mortgage, and is sometimes known as a secured loan. Unlike re-mortgaging – where a basic mortgage is changed to another one – a second charge mortgage is paid alongside the current mortgage. Where the current mortgage has the first legal ‘charge’ attached to the property, when a second mortgage is taken out, a second legal ‘charge’ is added, hence the name.

To qualify for a second charge mortgage, the borrower needs to be a homeowner already, but doesn’t need to live in the property. It is usually used to free up the equity from the borrower’s home. 

We offer two different products:

• Residential second charge range
• Buy-to-let second charge range