Talk to second charge bridging loan experts

  • Properties in England, Scotland, Wales, Northern Ireland
  • Interest rates from 1.14% per month
  • Loan to value up to 75%
  • Individuals and limited companies accepted
  • Pay monthly or at term end
  • Smaller loan amounts, from just £25,000
  • Borrow up to £250,000
  • Lower value properties, from just £75,000
  • No minimum personal income for existing landlords
  • Pay monthly or at term end

If you have had problems with credit, we may still be able to help.

Talk to second charge bridging loan experts

Specialist lending for your needs

Access funds quickly with our second charge bridging loan solutions. Our lending criteria offers applicants a great deal of flexibility, which is not provided for on the high street.

Get help with straightforward or complex cases. If you have had issues with your credit history, we will still consider your case. We’re specialists in helping those with poor credit – where some lenders may say no, we can often say yes.

Are you mid-way through renovating a property and need an additional cash injection, which you can’t get from your first charge lender?

Have you got a fantastic rate on your buy to let mortgage that you don’t want to touch, but you are looking to raise capital?

Are you locked-in to a fixed rate and would incur early repayment charges if you were to try and raise money from equity in your property?

Call us on our freephone number above and ask about our second charge bridging loans.

You could get a lending decision in just one call.

Specialist lending for your second charge bridging loan needs

Enquiring is easy

It takes 30 seconds.

Simply fill out the form above, or call us to discuss your needs now.

Our team of experts are there for you.

You'll deal with the same experienced advisor throughout your enquiry.

We can get you the funds you need, fast.

You could get a lending decision in just one call.

Why choose Mercantile Trust as your second charge bridging loan lender?

Applying for a second charge bridging loan with us is a quick and straightforward process. It only takes 30 seconds to fill out an enquiry form, applying has never been easier.

Second charge borrowing is a highly specialist area of property finance, that works differently to regular bridging loans.  It can make your property investment work harder for you in a number of ways.

You can raise funds to refurbish a property, in order to potentially leverage higher rental income. You can raise a deposit from equity in your property and add a new property to your portfolio. Or, you might have a significant bill to pay and need to liquidate funds efficiently to manage your property business.

All of these outcomes can be achieved – and more - whilst retaining a great first charge rate and avoiding paying any early repayment charges on existing borrowing.

Whatever your requirement, you will be working with a lender that will understand your needs and objectives and can offer you appropriate support.

As a specialist lender of second charge loans, you can expect to receive the expertise and support that you need from us.

Mercantile Trust is one of a group of privately owned financial services companies, which has been operating since 1988. The team here have a wealth of experience, to ensure you receive world class customer service.

Call the team or enquire online today, to discuss your borrowing needs.

Why choose Mercantile Trust as your second charge lender

Ready to enquire?

Talk to our mortgage experts now

We are here to help

  • Friendly UK based advisors
  • Enquiring won't affect your credit rating
  • Fast payouts - your loan could be with you in just a few days
  • No phone menus - immediate contact from our advisors
  • We are a direct lender, so we'll work with you from start to finish
Tara Evans – Direct Sales Manager

Tara Evans

Head Of Direct Sales

14 years at Mercantile Trust

01923 892199

Frequently asked questions

A second charge bridging loan is a short term loan that is taken out in addition to your mortgage. "Second charge" simply means that the first mortgage is the priority debt, and will be repaid first should the property ever be repossessed.

These loans can help you buy or sell a property quickly without waiting around for weeks on end, or to finance the quick purchase of a new property at auction so you don’t miss out.

A second charge bridging loan is a loan that sits behind an existing mortgage. If you have enough equity left in the property to secure additional borrowing against it, you may be able to take out a second charge.

A second charge loan indicates that a higher priority, first charge loan is already secured against the asset / property (typically a mortgage), which should be repaid before the second charge loan, should the asset ever be repossessed.

A second charge bridging loan provides fast finance, for 3-18 months before an exit, typically either refinancing to a longer term financial solution or selling the property to pay back the loan.

Second charge bridging loans are a highly versatile form of finance. Whether you own just a single buy to let property, or have a large property portfolio, unexpected costs always arise and a second charge bridging loan is a great way to arrange finance quickly to cover this possibility.

You may be expanding your business by buying another property at auction; if so you might consider choosing to take out a second charge bridging loan to pay for a property while you arrange a longer term finance solution such as a buy to let mortgage.

You may wish to purchase a new property and need some short term finance whilst you wait for another property to sell, or fund some property development; if so, a second charge loan could help.

As the second charge bridging loan is secured against the equity in your property, the amount you can borrow relies on the available equity. Equity is the portion of your home that you own outright free from any mortgage.

As with many other types of finance, the more deposit you can provide, the less you’ll need to borrow. This reduces the overall cost of the loan as the lender will be taking on less risk.

Second charge bridging loans are usually more expensive than a mortgage. This is because they offer the benefit of borrowing larger amounts of money quickly, as well as letting you repay them over short periods of time, without any penalty charges.

Like other forms of lending, the interest rates is partially based on the risk of the finance not being paid back. To mitigate this risk, when you apply for a second charge bridging loan, the lender will ask you to have a feasible exit strategy when you take out the loan. This usually tends to be one of two things:

  • You plan to sell the property and repay the loan from the proceeds
  • You plan to switch to a longer term form of finance, typically a mortgage.

One of the main benefits of a second charge bridging loan is how quickly you can borrow large amounts of money. Some mortgages can take months to complete, but a bridging loan can be completed in just a few weeks (sometimes even quicker depending on the situation).

A second charge bridging loan may require consent from your first charge mortgage lender to go ahead, it’s best to contact your mortgage lender early in these scenarios, to mitigate any potential delays. This will allow you to benefit even further from one of the key advantages of a bridging loan, the speed they take to set up.

Because they can be faster than a mortgage, they can be used to buy a property quickly. A great example of this is property investors who don’t want to miss a bargain at auction while they arrange a mortgage. A second charge bridging loan could also be a great solution if you are renovating a property and need access to cash for a short period of time.

It’s important to remember that the more complex the case, the longer it may take to complete. Also, the speed of completion will always depend on how quickly you provide any required information, or return any paperwork to the lender.

Having a poor credit profile doesn’t mean that you won’t be accepted for a second charge loan.

Although some lenders may not be able to assist you, Mercantile Trust may be able to help. We consider all credit histories including those that have:

  • Accounts in default
  • CCJ’s (County Court Judgement)
  • Missed payments
  • Historic IVA (individual voluntary arrangement) which is now settled

It depends on your unique needs and circumstances, but typical alternatives include commercial loans, secured loans, development finance and asset loans.

Although a second charge bridging loan may provide the best option, when it comes to both speed of completion and avoiding any change to your first charge loan, there may be a better alternative if these things are less important to you.