If you browse among offers of third charge bridging loans you may find that these hardly exist as “third” charge loans. What they come up with is that you get rid first of your second charge loan(by paying it off surely), and then it is possible to make this third charge loan which in fact is another second charge bridging loan. A bit complicated, but lenders are afraid to get so far in the queue, that is why there is a tight competition between first and second charges, but no one really wants to be the third.

Thus it can be said that it becomes a risky business for the third charge lender because there is no guarantee that you will have all your other payments made in time, so the lender who is in first charge may steal the deal from him. This is the reason why third charge bridging loans guarantee you a much lower sum of money compared to first or second charge loans. Plus, the money you will get won’t reach a higher percentage than 70% of the real value of your property.

Don’t forget that bridging loans are only short termed solutions, where you need to act quickly and make sure that you are able to fully pay off your debt, otherwise your property easily becomes subject to repossession. APR is also higher in such cases, and you need to consult that too because it won’t be in your best interest if you will pay one that exceeds even 30%. Valuation fees are set up accordingly to the sum borrowed. For example if you borrow up to £100,000, expect a valuation fee ranging between £100-£150,  while in case the sum in charge is up to £1,000,000, the valuation fee will probably cost you somewhere between £500-£700.

In addition to valuation fees you will also have to pay certain legal fees which grow in accordance with the fact whether it is a first, second or third charge bridging loan the one you make, plus take into account an arrangement fee that you will be usually charged. As seen, there are a lot of extra fees which at first glance might not seem that much, but if you add them up you will certainly “feel” the weight. But certainly prices are subject to change from lender to lender and it is your task to make the research and find the right one for you, because the above prices are only examples, thus a generalization cannot be made.

The second charge bridging loan is of course easier to get then a third charge loan, but this type too, definitely needs that the lender who is in first charge agree to it. It is very important that all your payments most importantly towards the first charge lender are clear, steady and regular, otherwise don’t even expect that he will agree, because his main interest is to stay alone in charge so that if anything goes wrong he can easily put your property for sale without having to take into consideration any second or third charge lenders.

Practically your overall behavior towards your creditors, meaning that you have shown you are a reliable person by making on time payments, is very important. Keep in mind that your property is not an inexhaustible source of financing your needs, especially if you tie too many responsibilities around its roof it may give up on you in the end.