Our 2nd charge lending products are becoming increasingly popular in the current market. Borrowers who are still on first charge fixed term products at attractive rates are preferring to raise capital behind this as a 2nd charge, keeping the blended interest rate lower.
Obtaining 2nd charge loans can be a painful process. It requires the consent of the first charge holder, redemption statements from the first charge holder, additional legal requirements such as deed of postponements, and so on. At Albatross, our in house case management team will deal with this entire process for you, simplifying and speeding up the borrowing process.
2nd charge loans can be particularly useful if you are company owner seeking business related finance, and able to offer your primary residence as loan security where we would sit behind your mortgage lender. In any event, it is important to seek the correct advice from your broker before making important borrowing decisions.
Albatross provided a loan facility to a consultancy company who had just secured to major healthcare contracts. The company required funding to support the cash flow and investment requirement to ensure these contracts could be carried out, without the financial stress of meeting payroll, paying suppliers, and so on. The company did not own any physical assets for us to secure against, however the client offered us their primary residence as collateral. The property already had a first charge mortgage with a mainstream bank and therefore consent was required for us to sit behind. Albatross obtained authority from the client to speak directly with their bank, in order to drastically speed up this process and allow for the funds to be released quickly to ensure the client could meet their finance requirements.
As a result, the contracts were a huge success and the profits from this activity repaid our loan amount in full, well within the initial 18 month term, with no early repayment charges.
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