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Discover REIM Second Charge Bridging Loans

What is a second charge bridging loan?

A second charge bridging loan is a type of short-term financing secured against a property that already has a mortgage or loan. This type of loan is commonly used to “bridge” a gap in funding, often for property transactions or renovations, before longer-term financing can be arranged. It is called a “second charge” loan because it ranks behind the first charge loan (the primary mortgage) in terms of repayment priority.

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Minimum Loan: £100,000

Maximum Loan: £1,000,000

LTV: up to 70%

Interest Type: Retained or Serviced

Location: England & Wales

Critera

Residential Only
Available to individuals, Ltd Companies
Minimum applicant age – 18 years
We assess all bridge loans on an individual basis

Further Details

Key Features

Short-Term Financing
Typically lasts between 1 to 18 months but can last longer.

Secured Loan
Secured against the borrower’s property which already has a first mortgage.

Quick to Arrange
Can be arranged faster than traditional loans, making it ideal for urgent funding needs.

Flexible Use
Can be used for a variety of purposes including property purchase, renovation, business funding, or preventing property repossession.

How It Works

Eligibility
The borrower must have equity in the property used as security. Lenders assess the borrower’s financial situation, creditworthiness, and the property’s value.

Valuation
The property is professionally valued to determine the available equity.

Loan Amount
Typically, up to 70% of the property’s value (considering existing mortgages).

Repayment
Can be interest-only or rolled up into the loan amount. Full repayment is expected by the end of the loan term, often through refinancing or sale of the property.