Second charge bridging: raise capital without touching the first mortgage.
A short-term loan secured behind an existing mortgage on investment or commercial property. Used for deposits, works, tax bills, business cash and buying the next property.
How it works
Your existing lender keeps its first charge and its loan stays exactly as it is. The bridging lender takes a second charge for the new money. The combined loan-to-value across both is what matters, and the first lender's consent is usually needed (most give it as a matter of course; some take weeks).
What it is used for
- A deposit on the next purchase, without remortgaging a portfolio with good rates.
- Refurbishment works on a property that already has a mortgage.
- Business cash flow secured on commercial premises.
- Tax, VAT or a partner buy-out with a defined repayment date.
- Consolidating short-term debt ahead of a full refinance.
Typical terms
Combined LTV up to 65% to 70% across first and second charges. Rates 0.85% to 1.25% per month, higher than a first charge because the lender is second in line. Loans from £100,000. Terms 3 to 18 months. Interest usually retained or rolled up.
What lenders need
- The first mortgage statement and the lender's consent (we handle the request).
- A valuation of the property.
- The exit: sale, refinance of the whole debt on to a new first charge, or a defined receipt (sale of another property, a development completing).
- Where the property is let, the tenancy details.
When a second charge is the wrong tool
If the first mortgage is on a poor rate or is about to expire anyway, refinancing the whole thing on to one new loan is usually cheaper. If the money is needed for more than 18 months, a second-charge term loan, not a bridge, is the product. We will tell you which.
About the numbers on this page. Rates, fees and loan-to-values are typical market ranges for unregulated bridging in England, given so you can size a deal. They are not an offer. Your terms depend on the property, the exit, the lender and you.
Questions we get asked
Does my first lender have to agree?
Usually yes, and most will, though buy-to-let and commercial lenders can take two to four weeks to process a consent request. Some bridging lenders will proceed with an equitable charge if consent is refused or slow, at a cost.
Can I take a second charge on my own home?
Not through us. A second charge on the property you live in is regulated, and needs an FCA-authorised adviser.
Is it cheaper to remortgage?
Often, if you are prepared to give up the existing rate and pay the fees. A second charge makes sense when the first mortgage is good and the need is short-term.
Tell us the deal.
A few numbers and a postcode is enough for a first view. Indicative terms cost nothing and commit you to nothing.