Second Charge Bridging Loans
A second charge bridging loan sits behind your existing mortgage and releases equity from property you own without disturbing your first charge. It is the right tool when you need capital quickly but do not want to remortgage or cannot, because your current rate is too good to leave or because your first lender's early repayment charges make switching expensive.
What is a second charge bridging loan?
A second charge bridging loan is a short-term loan secured against a property that already has a first-charge mortgage on it. The bridge sits in second position behind the first mortgage, which remains in place. It is used to release equity quickly from property you own without touching the first charge, without triggering early repayment charges on the existing mortgage, and without the time delay of a remortgage.
The key requirement is consent from the first-charge lender. Before a second charge can be registered, the existing mortgage lender must formally consent to the new charge sitting behind them. Most lenders grant consent as a matter of course on investment and commercial properties, but the process adds a step to the timeline. We handle the consent request as part of the case.
The loan-to-value calculation for a second charge bridge is based on the combined LTV across both charges: the outstanding first mortgage plus the second charge bridge, divided by the property value. Most lenders will work to a combined LTV of around 65% to 75% on residential investment or commercial security. The available equity is the difference between the property value at the applicable combined LTV and the outstanding first mortgage.
Second charge bridging is most commonly used on investment or commercial property and is unregulated lending. Where a second charge is proposed against a property the borrower or a close family member lives in, it falls inside the FCA regulated mortgage perimeter and we refer that case to an authorised firm.
- Sits behind an existing first-charge mortgage; first mortgage stays in place
- First-charge lender consent is required before the second charge is registered
- Combined LTV across both charges governs the maximum loan
- No early repayment charges on the first mortgage triggered
- Usually faster and cheaper to set up than a full remortgage
- Unregulated on investment and commercial property; regulated cases referred to an authorised firm
Indicative terms
- Combined LTV (first plus second)typically up to 65% to 75% of property value (indicative)
- Indicative monthly ratefrom around 0.88% per month (Bridging Trends, 2025 average); second-charge cases may be priced slightly higher
- Typical term3 to 12 months; set to the exit event
- First-charge consentrequired; we handle the request
- Interestusually retained or rolled up; no monthly payments
- Exit strategysale of an asset, refinance onto a single longer-term mortgage, or capital event
Indicative only. Terms vary by lender, scheme and borrower and are not an offer of finance.
Who it suits
- Property investors who own an investment property with a mortgage and need capital quickly without remortgaging
- Landlords who want to release equity from their portfolio to fund a deposit on another acquisition
- Business owners who want to raise working capital against a commercial property they own
- Anyone locked into a fixed-rate first mortgage with significant early repayment charges who still needs to raise capital
- Investors who have found a time-critical opportunity and need to move faster than a remortgage allows
- Developers raising a deposit or bridging gap funds against an existing asset while a new project proceeds
Discuss second charge bridging
A view on fundability within one working day.
How a second charge bridging loan works
Assess the available equity
We calculate the equity available as the difference between the property value and the outstanding first mortgage, applying the second-charge lender's combined LTV ceiling. If the property is worth 500,000 and the first mortgage is 250,000, at 70% combined LTV the maximum total debt is 350,000, leaving 100,000 for the second charge before fees and retained interest. We model the gross-to-net so the figure that reaches you is clear before we approach a lender.
First-charge consent request
We identify the first-charge lender and initiate the consent request. Most lenders process this within one to two weeks on investment property, though some high-street lenders take longer. We manage this process and handle the correspondence on your behalf.
Decision in Principle and lender selection
We approach second-charge bridging lenders appropriate for the security type and combined LTV. Lenders such as Together, Shawbrook, MT Finance and United Trust Bank operate in this space. The Decision in Principle is usually available within 24 to 48 hours and confirms the indicative terms including the second-charge rate, which reflects the additional risk position behind the first lender.
RICS valuation and legal
The second-charge lender instructs a RICS valuation on the property. Both parties instruct solicitors. The legal work involves registering the second charge at the Land Registry and confirming the first lender's consent in writing. This is typically faster than a remortgage because the property is already in the borrower's ownership with an established title.
Drawdown and exit
Funds are released net of retained interest and fees. The second charge bridge runs until the exit event: a sale of an asset that repays the bridge, a refinance that consolidates both charges into a single new mortgage, or the capital event the bridge was raised to fund. We agree and evidence the exit before drawdown and set the term to allow the exit to complete without pressure.
Who can get a second charge bridging loan?
Second charge bridging is available to individuals, limited companies, SPVs and investors on residential investment and commercial property. The first-charge lender's consent must be obtainable. Lenders assess the combined LTV, the quality of the security and the exit strategy. Adverse credit at the borrower level is considered on a case-by-case basis. There is no minimum income test on unregulated second-charge cases. The exit strategy is scrutinised carefully because a second-charge lender carries higher risk than a first-charge lender and needs to be confident the bridge will be repaid within the term.
How much can you borrow on a second charge bridge?
The maximum loan is the difference between the combined LTV ceiling and the outstanding first mortgage. On a combined LTV of 70% against a 500,000 property with a 200,000 first mortgage, the maximum total debt is 350,000, leaving a maximum second charge of 150,000, reduced further by retained interest and fees. The actual rate on a second charge bridge is typically slightly higher than an equivalent first-charge bridge because the lender is in a subordinate position and bears higher risk if the property is sold in enforcement. We model the combined position and the gross-to-net in full before presenting any case to a lender.
What does a second charge bridging loan cost?
Second charge bridging typically prices slightly above an equivalent first-charge bridge because of the additional risk position. Indicative rates from around 0.88% per month (Bridging Trends, 2025 average) represent the market average, with second-charge cases typically sitting somewhat above this on a like-for-like basis. Beyond interest, the costs include an arrangement fee, RICS valuation, legal fees for both parties, and the first-charge lender's consent fee, which is typically a flat administrative fee. Interest is usually retained or rolled up, so there are no monthly payments during the term. We set out the total cost in writing before anything is committed.
Second charge bridging versus a remortgage
A remortgage consolidates all borrowing into a new single mortgage, which is cheaper per year but involves redemption of the existing mortgage, possible early repayment charges, and the time and cost of a full remortgage application. If your current first-charge rate is below what the remortgage market offers today, or if you have significant early repayment charges, a second charge bridge may be materially cheaper in total cost even at a higher monthly rate, because it does not trigger the ERC and it moves far faster. We compare both routes and model the all-in cost before advising on the structure.
Second Charge Bridging: common questions
What is a second charge bridging loan?
A short-term loan secured against property that already has a first-charge mortgage on it. The bridge sits in second position, behind the existing mortgage which remains in place. It is used to release equity quickly without remortgaging and without triggering early repayment charges on the first mortgage.
Do you need consent for a second charge?
Yes. The first-charge lender must formally consent to the second charge being registered against the property. We handle the consent request as part of the case. Most lenders grant consent on investment property within one to two weeks.
How much can you borrow with a second charge?
The available loan is the difference between the combined LTV ceiling (typically around 65% to 75% of the property value, indicative) and the outstanding first mortgage. The gross-to-net deducts retained interest and fees from the gross facility to give you the actual net sum received. We model this in full before approaching a lender.
Is a second charge bridging loan regulated?
On investment or commercial property, second charge bridging is unregulated lending and we arrange it directly. Where the security is a property the borrower or a close family member lives in, it is inside the FCA regulated mortgage perimeter and we refer the case to an authorised firm.
How long does it take to put a second charge on a property?
Once the first-charge consent is received, a second charge bridging case can typically complete in three to five weeks from enquiry. The consent request itself usually takes one to two weeks. We run the consent process and the lender's underwriting in parallel where possible to minimise elapsed time.
What can I use a second charge bridging loan for?
Common uses include raising a deposit for another property acquisition, funding a time-critical business capital need, settling a tax liability, buying out a partner, or bridging gap funds on a development project. The purpose is less important to the lender than the exit: how the loan will be repaid at the end of the term.
What is a good exit strategy for a second charge bridge?
The three most common exits are: sale of the property securing the bridge, with the sale proceeds clearing both the first mortgage and the second charge; refinance, consolidating both charges into a new single mortgage at a lower rate once the bridge has served its purpose; or a capital event such as the completion of a sale or development that generates the funds to redeem the bridge.
Discuss second charge bridging
Send us your scheme and we will come back with a view on fundability and likely terms within one working day.