A privately funded bridging lender has shed light on its innovative third charge product, which allows borrowers to free up any crucial remaining equity in their property.

Central Bridging Loans (CBL)’s product allows property owners to add a further charge to their security, allowing them to access funding at up to 75 per cent LTV.

B&C spoke to Chris Wilson, Director at CBL, to find out more about the firm’s unique proposition.

Chris said: “To my knowledge, it’s only CBL that offer a third charge product, or at least we’re the only lender that advertises as such.

“We introduced it after receiving an enquiry – a borrower already had a first and second charge debt and needed some extra capital.”

The product provides a loan size of between £100,000 and £1 million and for a term of up to 12 months, while interest rates start from 1.65 per cent monthly depending on the LTV required.

Chris added that any charge CBL takes against a property would sit behind any existing debt.

He said: “The most cost effective way for the client is not to disturb any charges already held against a borrower’s security (as long as everything is up to date), especially when they are held by a mainstream lender, although we will always review the individual circumstances with each client.

“Consent is requested from those holding charges ahead of us and in most cases this is granted without delay. We can even lend behind some sub-prime lenders.”

Chris went on to say: “It’s important to us that we consider each individual deal on its own merits and that a borrower knows exactly what they’re doing. We have tended to deal with very professional clients who need to attain a bit more from their property but have a clear idea about what they’re hoping to achieve.”

When we asked what extra considerations might have to be made with such a product, Chris replied: “The two most crucial factors in a third charge deal are to have a quality security and, above all else, a very robust exit strategy.”

“Normally we deal with property sales, but do consider alternative real estate sales, such as BTL properties or holiday homes. We’ve even dealt with a commercial sale recently, with the charge taken out against the client’s primary residence.”

He added: “As we’re 100 per cent privately funded, we have the flexibility to lend on cases that others don't have the appetite for.”