TAB’s second charge residential loans are secured against UK residential properties. Second charge loans allow you to borrow money on a second charge legal basis. This means that you can take another loan out on a property providing there is enough equity to pay your existing first charge, and the second charge loan. Second charge loans are often used for the redevelopment of existing properties or the purchase of an investment property.
TAB lends directly to borrowers and through intermediaries. We offer loans up to 70% of the valuation of your project, including the cost of borrowing. There are no exit fees, and we do not lend against your principal residence.
TAB loans are unregulated. Any property used as security is at risk of repossession if you do not keep up with your payments.
Other charges may apply
Following an initial enquiry, borrowers apply for a loan through our application process.
Our team undertakes their due diligence and underwriting process on the borrower and the security property. Terms are then agreed.
The loan is then matched with investors on the TAB platform. Funds are typically available within just 14 days.
TAB knows the value of keeping things simple and transparent for everyone. Whatever the size or scope of your plans, our expert team of underwriters, business development managers, and an in-house legal team are here to help with your requirements. Book a meeting with one of our team today.
A second charge loan on a residential property allows you to borrow money, providing there is enough equity whilst leaving your existing first charge loan in place. A second charge loan applies if you already have a loan secured against a property that already has an outstanding mortgage. For property improvements such as extensions, you would likely need to take out a second charge bridging loan if you already have a mortgage on the property. The distinction lets the lender know who has priority in the repayment if you can’t pay off the loan by the end of the term.
If you would like to take a second charge residential bridging loan then typically TAB's minimum is £100,000 and the maximum is £5m.
Hackney, London: The client required a second charge residential loan of £380,000 for 12 months to refinance an existing bridge allowing sufficient time to establish an exit plan. A condition attached to the exit, in this case, waws that the property must be marketed by month six of the term to allow sufficient time to redeem. The LTV was 60% charged at 1.00% interest per month.
TAB takes security over real estate for each loan. TAB requires personal and sometimes corporate guarantees for loans to corporate borrowers. Details of a particular security will be set out in each loan's term sheet. TAB adopts industry practice standards towards the taking of each security, through the engagement of appropriately qualified and experienced solicitors. It is the responsibility of the solicitor TAB instructs to undertake appropriate real estate and other due diligence so as to ensure that the loan security is capable of enforcement, free from any unknown competing charges and interests.