Bridging loans are ideal for people who already have a mortgage on their property but need a short-term injection of funds.
There are many reasons to use second-charge bridging loans, such as investing in real estate, expanding your business, or renovating an older property.
Tapton Capital believes second-charge bridging loans are about helping borrowers take advantage of time-sensitive opportunities that can make or save them money.
Bridging loans can be used to keep your mortgage. The existing mortgage terms and conditions would not be changed. Second charge bridging loans allow for more flexible repayment terms, potentially saving thousands of pounds.
Bridging loans may be more affordable if you are penalised for stopping/changing your existing mortgage early. Existing mortgages remain in place without penalty. In this case, a cost comparison would be beneficial.
'Stress' tests are being applied by lenders to ensure that borrowers can meet repayments if interest rates rise in the next few years. A second charge bridging loan provider, however, does not rely on the same tests and can tailor a solution to meet your unique borrowing needs. People with complex financial backgrounds and unusual income structures can also benefit from second charge bridging loans.
When a mainstream bank takes months to process a loan application, Tapton Capital will often be able to make a decision within hours of initial inquiry. This allows funds to be released quickly, sometimes within days of the application being submitted. Second-charge bridging loans can be useful for those who need quick cash.
Bridging finance is a short-term funding solution designed to 'bridge' the gap between a debt coming due and the main line of credit becoming available. It can be invaluable in time-sensitive situations, such as property purchases, auction buys, or preventing property chain breakdowns.
Bridging finance can be used for property purchases (especially at auction), preventing property chain breakdowns, property refurbishments and developments, business cash flow gaps, and buying property before selling an existing one. It's versatile for any situation requiring short-term funding with a clear exit strategy.
There are several types of bridging loans including first and second charge loans, open and closed bridging loans, regulated and unregulated bridging loans, and residential and commercial bridging loans. Each type serves different purposes and comes with its own terms and conditions.
Bridging finance works by providing short-term funding secured against property. The loan is typically repaid within 12 months, either through the sale of the property, refinancing to a long-term mortgage, or from another source of funds. Interest can be serviced monthly or rolled up and paid at the end of the term.
Bridging finance is available to a wide range of borrowers including individuals, partnerships, limited companies, and other legal entities. Eligibility depends on factors such as the value and condition of the security property, your exit strategy, and sometimes your credit history. Our team can assess your specific situation and advise on the most suitable options.
The benefits of bridging finance include speed of arrangement, flexibility in terms, the ability to borrow against property value rather than income, no early repayment charges with many lenders, and the ability to complete property purchases that might otherwise fall through due to timing issues.
Bridging finance with 2nd charge loans allows you to access the equity in your property without disturbing your existing mortgage. This can be useful when you need additional funds quickly but don't want to refinance your entire mortgage. Second charge bridging loans can be arranged quickly and provide flexible terms to meet your specific needs.
Explore our tailored finance solutions, designed to meet your property and asset financing needs.
We are your trusted partner for development finance. As a leading broker in the industry.
We are your trusted partner for development finance. As a leading broker in the industry.
