Second Charge Bridging

Second Charge Bridging Loans

Raise short-term capital against the equity in a property without disturbing the first-charge mortgage. Often the fastest way to release funds when the senior loan is already at a low fixed rate.

What it is

Bridging behind an existing first-charge mortgage

A second charge bridging loan is short-term finance secured by a second charge against a property that already carries a first-charge mortgage. It releases the equity in the property without paying off, disturbing or refinancing the senior loan, which makes it attractive whenever the existing mortgage is at a fixed rate the borrower would lose by remortgaging, or where the first lender will not consent to a further advance in a useful timeframe.

Second charge bridges are commonly used to fund a deposit on the next property, settle a tax bill, complete refurbishment works, buy out a partner or co-investor, or rescue a deal where the first lender's redemption process is too slow. Loans run from 3 to 18 months, with rates typically priced 0.10-0.25% per month above a first-charge bridge to reflect the subordinated position.

First-lender consent is the practical bottleneck on almost every second-charge bridge. We hold lender relationships that smooth consent on the major high-street banks, building societies and specialist BTL lenders, and we know which second-charge bridging lenders will proceed without consent where the legal position allows (typically on unencumbered second-home or investment properties where the first lender's standard charge wording does not require it).

Get a Quote Call 0204 6211776

0.69% pm

Rates from

75% CLTV

Combined LTV

£50k-£10m

Loan size

10-21 days

Typical completion

Why Doulton

What makes this work in practice

Preserve your low first-charge rate

If your existing mortgage is fixed at a sub-3% rate, redeeming it to take a first-charge bridge or further advance can cost more than the bridge itself. A second charge leaves the first loan untouched.

Up to 75% combined LTV

Borrow up to 70-75% of property value across the first and second charges combined. Investment properties and BTL securities typically attract slightly tighter limits than owner-occupied homes.

Both regulated and unregulated

Available as an FCA-regulated product when the security is the borrower's main residence, or unregulated when secured against investment property, BTLs or company-owned assets.

Specialist consent handling

We manage the consent process with first-charge lenders end-to-end, including pre-population of consent forms and direct broker-to-lender escalation on the major BTL panels. This is the single most common cause of delay and we own it.

Day-one drawdown structures

On larger facilities we can structure tranched drawdowns from a second charge bridge, releasing capital against valuation stages rather than in one lump on day one. Useful for refurbishment-led deals.

No need for full remortgage paperwork

A second charge bridge is significantly faster to underwrite than a full remortgage of the senior loan. Most cases complete in under three weeks with valuation, legals and consent running in parallel.

The process

How it works

Quote against current first charge

Share the property value, current mortgage balance, lender and rate. We confirm the workable combined LTV, indicative rate and which lenders will accept the senior loan.

Consent request lodged

We prepare and lodge the consent-to-second-charge form with the first lender on day one, in parallel with our application. Average consent turnaround is 5-10 working days.

Underwriting and valuation

RICS valuation and full underwriting run alongside the consent process so nothing waits in sequence. Title and searches are progressed by the conveyancer in parallel.

Completion

Once consent is in and conditions are met, funds drawn down. Exit is managed throughout, whether sale, refinance, or redemption of the second charge from the project itself.

Release capital without losing your mortgage rate

Whole-of-market second charge bridging from £50k to £10m, secured behind your existing mortgage. Indicative quotes in hours, completion in 10-21 days.

Get a Quote Call 0204 6211776

FAQs

Frequently asked questions

What is a bridging loan and when is it used?

A bridging loan is a short-term property-secured facility, usually 1-24 months, used to 'bridge' a funding gap - for example between buying a new property and selling an existing one, completing an auction purchase within 28 days, breaking a property chain, or funding works before refinancing onto a mortgage.

How much can I borrow on a bridging loan?

We arrange bridging from £25,000 up to £100m+. Typical LTVs are up to 75% on residential, 70% on commercial, and up to 80% on larger prime deals. Second-charge bridging is available up to around 65% LTV.

How fast can a bridging loan complete?

Straightforward cases can complete in 5-10 working days. Complex security, multiple parties, or additional diligence typically adds 1-2 weeks. Valuation and legal turnaround - not lender underwriting - usually drive the overall timeline.

What exit strategies do lenders accept?

The most common exits are (1) sale of the security property or another asset, (2) refinance onto a mortgage, and (3) receipt of expected funds (probate, business cash flow, drawdown of other finance). Lenders stress-test the exit alongside the loan.

What are typical bridging rates and fees?

Rates currently start from around 0.49% per month and rise based on risk, LTV and property type. Expect arrangement fees of 1-2%, valuation fees of £300-£1,500, and legal fees of £1,500-£3,000. Interest can be serviced monthly, retained upfront, or rolled up.

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Explore related pages

Other Doulton specialisms and lenders that commonly fit alongside this one. We always compare the full 130+ lender panel before recommending a deal.