Mortgage guide
Second charge bridging loans
A second charge bridging loan is a highly effective way to release property equity quickly without refinancing or disturbing an existing first-charge mortgage.
- Published
- 4 Aug 2026
- Last reviewed
- 8 Oct 2026
- Reading time
- 3 min
Second charge bridging loans
A second charge bridging loan is a highly effective way to release property equity quickly without refinancing or disturbing an existing first-charge mortgage. As a whole-of-market broker, we arrange second charge bridging finance across a broad panel of specialist lenders, giving access to far more options than a single lender or direct provider. Whether the requirement is for an investment opportunity, a time-critical purchase, or short-term liquidity, we structure second charge bridging loans around speed, flexibility, and a clear exit strategy, rather than rigid affordability-led criteria.
Why use a second charge bridging loan?
Second charge bridging loans allow borrowers to raise capital behind an existing mortgage, using the available equity in the property. This approach is particularly suitable where:
- The existing first-charge mortgage is on a low or fixed rate
- Early repayment charges would make refinancing inefficient
- Refinancing the first charge would be too slow or impractical
- Capital is required quickly for a short-term purpose
Because second charge bridging is asset-led, it can often be completed significantly faster than a full refinance, making it well suited to time-sensitive transactions.
Whole-of-market access: standalone and cross-charge structures
We arrange both standalone second charge bridging loans and cross-charge bridging structures, selecting the approach that delivers the most efficient leverage.
Standalone second charge bridging loans are secured against a single property that already has a first-charge mortgage
Cross-charge bridging loans use multiple properties as security, increasing borrowing potential and reducing the need for large cash deposits
As a whole-of-market broker, we compare lenders offering residential, buy-to-let, and commercial second charge bridging, ensuring the structure aligns with both the asset and the wider strategy.
Flexible leverage and tailored terms
Second charge bridging loans can typically be arranged up to:
- 75% combined LTV on residential property
- 80% combined LTV on buy-to-let property
- Around 65% combined LTV on commercial property
We also work with lenders that allow rolled-up interest, meaning no monthly payments during the loan term, helping to preserve cash flow until the agreed exit.
Bridging calculator
Estimate the gross loan against property value before interest, fees and retained amounts.
Bridging Loan Criteria
For context, these are the wider product terms covered by this guide. Availability and eligibility depend on your circumstances and the lender.
| Criteria | Detail |
|---|---|
| Borrowers | Personal, limited company (Ltd co), LLP and offshore trusts, depending on the lender |
| Repayment type | Interest only or repayment |
| Term | Short term. The maximum term varies by lender; in our experience the minimum term is usually 1 month, and 3 months with some lenders |
| Experience | Not always required; it depends on the lender and the exit |
| Max applicants | Varies by lender |
| Valuation types | Automated valuation (AVM), Market Value 1 (MV1) yield based, market value (MV), 180-day or 90-day value, depending on the lender and how it labels the valuation basis |
| Regulated and unregulated | Yes, both: regulated where the borrower or a close family member lives, or will live, in the property |
| Credit searched | Usually, depending on the lender |
| Credit scored | Varies by lender; the decision rests mainly on the property and the exit |
For context, these are the wider product terms covered by this guide. Availability and eligibility depend on your circumstances and the lender.
| Loan to value | Rate |
|---|---|
| 65% LTV | 0.62% per month (2% lender fee) |
| 75% LTV | 0.72% per month (2% lender fee) |
| 85% LTV | 0.9% per month (2% lender fee) |
For context, these are the wider product terms covered by this guide. Availability and eligibility depend on your circumstances and the lender.
| Feature | Detail |
|---|---|
| Additional Security | 100%+ |
| Residential | 90% |
| Commercial | 75% |
| Land | 70% |
Related case studies
Frequently asked questions
Are second charge mortgages a viable alternative to bridging loans?
Yes, second charge mortgages are a common alternative where a borrower has equity but wants to keep their existing mortgage. They offer longer terms, higher loan-to-income flexibility, and lower overall cost than bridging loans.
Can I get a second charge bridging loan for property refurbishment?
Yes, you can obtain a second charge bridging loan for property refurbishment, provided there is sufficient equity after the first mortgage. Lenders assess combined loan-to-value, the scope of works, and a clear exit strategy, typically a refinance or sale once refurbishment is completed.
Is a second charge better than a bridging loan in a divorce?
A second charge loan can fund a buy-out over a longer term while keeping the existing mortgage, which suits borrowers who can afford monthly payments. A bridge can suit a purchase when a remortgage or sale will follow within months.
How much do banks charge for a bridging loan?
Bridging loans typically charge monthly interest between 0.5% and 1.5%, plus arrangement fees of around 1 to 2% of the loan amount.
Do bridging loans have early repayment charges?
Bridging loans usually have no long early repayment charges, though some have minimum interest periods or exit fees. Buy to let fixed rates commonly carry early repayment charges during the fixed period.
Talk it through with an adviser
Speak to a Mortgage Lane adviser about your circumstances and the next steps.
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