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Second Charge Bridging Loans

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Second Charge Bridging Loans

When you need additional capital but remortgaging would be slow, expensive or impractical, a second charge bridging loan can be an effective solution.

Second charge bridging allows you to raise short term finance against a property that already has a mortgage in place. You keep your existing mortgage and avoid early repayment charges. You can also access funds quickly when timing matters.

Second charge bridging is a type of bridging finance used by property investors, landlords and developers across the UK. It is often used when further advances are not available or when speed is essential.

Why Use a Second Charge Bridging Loan?

Second charge bridging is commonly used when:
• You want to release equity without replacing an existing low rate mortgage
• You are tied into a fixed rate and want to avoid early repayment charges
• Further advances are no longer available
• You need funding quickly for a property project
• Remortgaging would increase cost or delay the deal

It suits borrowers who need speed and flexibility while keeping their main lending intact. For more short term finance options, see our Bridging Loans page.

What Is a Second Charge Bridging Loan?

A second charge bridging loan is secured against a property that already has a mortgage. The existing lender remains in first charge position. The bridging lender takes second charge behind them.

The loan is short term and structured around a clear exit, usually a refinance or sale. Lenders focus on the property value, total exposure and exit strategy rather than standard affordability checks.

When Is Second Charge Bridging Used?

Second charge bridging loans are typically used for:
• Property refurbishment or development
• Residential to HMO or commercial conversions
• Purchasing additional property
• Short term funding ahead of refinance or sale
• Portfolio cash flow management
• Covering unexpected project costs

This type of finance often suits experienced borrowers managing active or time sensitive projects.

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Key Features of Second Charge Bridging Loans

Second charge bridging loans can typically offer:
• Loan sizes from £25,000 to £25 million
• Terms from 1 to 36 months
• Combined loan to value up to 75%, subject to structure
• Rolled or retained interest options
• Flexible underwriting based on the exit

Higher LTV lending may be possible where the property, equity position and exit are strong.

How Much Can You Borrow?

Borrowing levels depend on:
• Property value
• Existing mortgage balance
• Combined loan to value
• Strength of the exit strategy

Many cases sit below 75% combined LTV. However, some second charge bridging loans can reach up to 75%, depending on the lender and deal structure. The second charge lender ranks behind the first mortgage if the property is sold.

Do You Need Consent From the First Charge Lender?

Often, yes.

In many cases, the first charge lender must consent to a second charge being registered. Where consent is not available, funding may still be possible using an equitable charge, depending on the lender and property.

We confirm consent requirements early and advise clearly on feasibility.

How Long Does a Second Charge Bridging Loan Take?

Timescales vary by lender and case complexity. Many second charge bridging loans complete within 2 to 4 weeks.

More complex cases, including layered ownership or detailed legal structures, may take longer.

Does Credit History Matter?

Credit history is not usually the primary driver. Lenders focus on:
• The property
• The equity position
• The exit route

Adverse credit does not automatically prevent approval where the deal is well structured.

Why Use GPS Financial?

GPS Financial is a UK based specialist brokerage with over a decade of experience arranging bridging finance for property investors and developers.

We focus on:
• Exit planning from day one
• Sensible loan structures that support the wider strategy
• Access to the full bridging market
• Transparent advice and active case management

Our role is to make sure the funding works at completion and at exit.

Next Steps

If you are considering a second charge bridging loan, speak to a specialist early. Early structuring helps avoid delays, unnecessary cost and failed exits.

Call 029 2267 7707 or visit our Contact Page to discuss your project.

A second charge bridging loan is registered behind the existing mortgage. For background on how property charges are recorded, see HM Land Registry guidance on property charges.

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Why GPS Financial?

Leading property finance specialists
We remove the stress and the paperwork
Match you with the right deal for you
No case too big or too small

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You focus on the build, we’ll handle the funding.