2nd Charge lending

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  • 2nd Charge lending

    Hi All,

    I am wanting to look in to 2nd charge lending on portfolio's currently financed Commercially. Does anyone know rates? LTV Maximums? Fee's? Companies who do this? Any help much appreciated. Most portfolios are of 20+ properties financed in a limited company to the tune of 55-60% with a main stream lender on a commercial basis

  • #2
    Hi Hech123
    its not a question of what 2nd charges might be available and at what rates, it is whether the main stream lender will permit a second charge to be registered.
    it has been a major issue for a long time where. Borrowers are enjoying very low reversionary rates but have significant equity which they would like to access, unfortunately the vast majority and in particular those whose mortgages are subsequently securitised , e.g Paragon, Precise, Fleet, resolutely forbid such charges as it would contravene the Warehousing Agreements which are arranged for such funding.
    Either ask your lender the said question or provide the info and I will gladly check out their position and let you know what sources might consider lending by 2nd charge.


    • #3
      I shall check, I am with Lloyds and doing quite a lot of continuing business, I do not see an issue as they would still have a debenture over the company


      • #4
        I will look forward to hearing what the banks attitude is; as it is a pure commercial transaction much rests either in the loan documentation or by subsequent referral.


        • #5
          Does 4.2% look tempting ?



          • #6
            4.2% looks amazingly cheap but as always the devil will be in the detail. We will not qualify for a lot of products since we are a commercial entity. I will keep you up to date as I have sent off a few enquiries about this


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