Second or third charge bridging loans could be the solution in cases where there is an existing mortgage on your property but there is equity available so that you can still be approved for a personal loan. Second Charge Bridging loans on the other hand are a much less difficult loan to get than a third charge loan. In the case of third charge bridging loans there are several pieces of criteria that you must meet in order to be approved. A spotless credit record would be exremely helpful, but since so few people possess this rare and elusive bird the spotless credit record, it is still quite possible to receive one with less than perfect credit. And the reason for this is that lenders who give third charge bridging loans become the third in a line of priority on repayment. So it is more difficult for them to receive any recompense in the event that the loan goes south.
If you do some searching among the many offerings of third charge bridging loans, you may find that there are really not many to choose from. The reason being that with a third charge bridging loan, they will require the first or second charge loans to be gone, usually by paying them off, which then makes it possible to make the third charge loan, which in actuality is more similar to a second charge bridging loan, now that the second charge loan no longer exists. It will be more difficult to secure this type of loan, because while the competition among lenders to be first or second charge lender, not many lenders want to be in the third charge position.
Due to the riskiness of the third charge lender’s position, there is no guarantee that you will get all your other payments made on time, so the lender who is in charge of the first charge loan may be able to steal the deal. This is why third charge bridging loans supply you a much lower loan amount compared to first or second charge loans. Not too mention the money you do get won’t reach a percentage any higher than 70% of your property’s real value.