Second Charge Bridging Loans: raise funds without touching your mortgage
Keep your existing (probably cheap) first mortgage exactly where it is, and raise short-term funds behind it. How second charges work, when they beat a refinance, and what your first lender has to say about it.
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How a second charge bridge works
The bridging lender takes a charge behind your existing mortgage lender. Your first mortgage is untouched, same rate, same payments. The bridge sits behind it, secured on the equity above it.
"You've got the first charge lender, then the second charge lender, and then effectively the third charge person is yourself, the client. That queue is the reason a second charge lender won't go as high as your mortgage lender did."
When it beats remortgaging
- Your existing rate is better than anything available today
- Early repayment charges on the first mortgage would sting
- You need the money short term, for a business opportunity, a tax bill or the deposit on the next purchase
- Speed: second charge bridges move in days, remortgages in months
How much you can raise, and why it's lower
Most lenders on a second charge bridge will go up to about 70% gross, and plenty sit nearer 65%. That's lower than you would get on a first charge, and the reason is the queue.
If something went wrong and the property had to be sold, the second charge lender gets paid second, not first. They're carrying that risk, so they lend less against the same house. Remember that 70% is the gross figure too, so the money that reaches you is lower again once the fees and the interest come off.
The options to rule out first
A second charge bridge isn't automatically the answer, and there are usually cheaper routes to check before it. In rough order:
- A further advance from your existing lender. Ring them first. If the affordability works and the equity is there, they'll often do it, and it's the simplest outcome
- A second charge term mortgage. A different lender, longer term, sometimes six times income. Right if you need the money for years rather than months
- A second charge bridge. This is for speed, or for money you intend to pay back soon. Those are the two reasons, and if neither applies, one of the above is probably better
What happens if your exit doesn't happen
Every second charge bridge needs an exit, and lenders will stress test it rather than take it at face value. Say the plan is to repay from a bonus in six months. The lender is thinking: what if the bonus doesn't arrive? What if he's made redundant?
So we work out a plan B before the loan goes anywhere. That might be remortgaging away from the current lender and capitalising the debt, which does mean losing the good rate and paying the early repayment charge, but is a great deal better than the property being repossessed. Or it might be a second charge term taking over from the bridge. The point is to have decided it in advance rather than in month five.
The consent question
Most first lenders must consent to a second charge. Some are easy, some slow, some awkward, and knowing which is which is half the value of a broker here. Where consent is impossible, an equitable charge is sometimes the route, and we'll tell you early which path your deal is on.
A £200,000 house with a £100,000 mortgage on a rate worth keeping. The client needed £25,000 for a kitchen, and the builder had one slot free with a discount attached to it. Consent given, equity comfortable, repaid from a bonus six months later.
Read the full case study →Common Questions About Second Charge Loans | Bridging Finance Broker
What is a second charge bridging loan?
A short term loan secured behind your existing mortgage. Your first mortgage stays exactly as it is, same rate, same payments, and the bridge sits behind it secured on the equity above it.
Will my mortgage lender allow a second charge?
Usually, with formal consent. We know which lenders consent quickly and which ones drag their feet, and that shapes the timeline more than the bridge itself.
How much can I raise with a second charge bridge?
It comes down to combined loan to value. Your first mortgage plus the bridge together, typically capped around 70% of the property value, and some lenders sit nearer 65%. The more equity you have, the more room there is.
Is a second charge bridge cheaper than remortgaging?
Per month, no. Overall, often yes. If breaking your current mortgage means losing a rate you'll never see again or paying early repayment charges, a short second charge frequently costs less in total. We run both sets of numbers so you can see it in writing.
Is my home at risk?
Any secured loan puts the security at risk if it isn't repaid. When it's your own home the loan is regulated, advice is mandatory, and we give it straight.
What if my mortgage lender refuses consent?
Not necessarily the end of the road. An equitable charge secures the loan without needing their consent at all. We've a whole page on equitable charge bridging.
Got a deal like this on your desk?
Tell us the numbers and we'll tell you honestly what's achievable.
Prefer to put it in writing? Email support@bridgingfinancebroker.co.uk