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.
As a sole trading developer, my main focus is put my energy in to carrying out exceptional schemes. Over the years, I have kissed many frogs when it comes to borrowing money; you either get a lender too wrapped up in red tape to be able to provide the speed and flexibility that I need, or a lender who doesn’t fully understand the inevitable ups and downs of property development in order to get to the finished masterpiece.
Albatross have been like a trusted business partner to me for several years now and they play a large part in the success I have had commercial. Cannot recommend enough.
Like many, I found myself up against it, financially, during the covid 19 period. I was faced with a business debt that required immediate payment, but my funds available were limited.
Fortunately, my broker introduced me to Albatross. They met me almost immediately on the site of a small barn and vacant barn conversation that I own and rent out on a holiday let basis. Given the urgency, we instructed legals at the time of meeting and they provided me with funds within 48 hours, ensuring I settled my payment on time. I will be forever grateful for both their speed of initial delivery, and service and understanding throughout the loan term.
I have been supporting Albatross with loan applications since their inception, and some 8 deals later they continue to be my ultimate lender of choice. I particularly relish the fact I can call the office and speak directly to a decision maker; they don’t always say yes to my deals, but I equally appreciate the quick no’s.
A lender who is able to be as commercially minded and efficient as Albatross is a lender who’ll go very far.
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