---
title: "Third charge bridging loans"
description: "A bridging loan with a third charge is a specialist form of bridging finance where the lender takes a third-ranking legal charge behind an existing first and second charge on a property."
url: "https://mortgagelane.com/guides/bridging-loans/third-charge-bridging-loans"
site: "Mortgage Lane"
collection: "guides"
date: "2026-08-04"
author: "Written by an adviser at Mortgage Lane"
category: "Mortgage guide"
reviewed: "2026-10-08"
reading_time: "3 min"
byline: "Written by an adviser at Mortgage Lane"
author_credentials: "CeMAP · FCA authorised firm"
language: "en-GB"
robots: "index,follow"
---

# Third charge bridging loans

A bridging loan with a third charge is a specialist form of bridging finance where the lender takes a third-ranking legal charge behind an existing first and second charge on a property.

A bridging loan with a third charge is a specialist form of bridging finance where the lender takes a third-ranking legal charge behind an existing first and second charge on a property.

[Bridging loan](https://mortgagelane.com/definitions?term=bridging-loan)

Bridging finance

A short-term loan secured against property or land to cover a funding gap until an agreed repayment event, such as a sale or refinance.

[Read the full definition of Bridging loan](https://mortgagelane.com/definitions?term=bridging-loan)

Back to overview

[Bridging Loans](https://mortgagelane.com/short-term-finance/bridging-loans)

Related definitions

[Early repayment charge (ERC)](https://mortgagelane.com/definitions#def-early-repayment-charge)

·

[Portfolio landlord](https://mortgagelane.com/definitions#def-portfolio-landlord)

## Third charge bridging loans

A bridging loan with a third charge is a specialist form of bridging finance where the lender takes a third-ranking legal charge behind an existing first and second charge on a property. While less common than first or second charge bridges, third charge bridging loans are achievable in the right circumstances and are used where a borrower has sufficient remaining equity and a clear short-term funding need.

### How Third Charge Bridging Loans Work

In a third charge structure:

- The first charge is usually a residential or buy-to-let mortgage
- The second charge may be another mortgage or secured loan
- The bridging lender takes a third charge against the property

The lender’s security sits behind the earlier charges, so risk is higher. As a result, these loans are:

- More selectively underwritten
- Typically offered at lower loan-to-value (LTV)
- Priced higher than first or second charge bridging loans

### When Third Charge Bridging Is Used

Third charge bridging loans are most commonly used where:

- The borrower has significant equity but does not want to disturb existing borrowing
- Refinancing the first or second charge would trigger early repayment charges
- The funding requirement is short term and time critical
- The loan is being used for investment, auction purchases, or bridging a deposit

They are often used by experienced investors and portfolio landlords who want to unlock trapped equity quickly.

### Key Lending Criteria

Lenders will focus heavily on:

- Combined loan-to-value (CLTV) across all charges
- The quality and marketability of the property
- A clear and credible exit strategy, usually a sale or refinance

Third charge bridges are usually capped at a conservative CLTV, often significantly lower than standard bridging limits.

### Consent and Legal Requirements

For a third charge bridging loan to proceed:

- The first and second charge lenders must give consent
- Full legal due diligence is required
- Independent legal advice (ILA) may be required for the borrower

Because of the complexity, legal costs are typically higher than standard bridging loans.

### Exit Strategies

Typical exits include:

- Refinancing the entire debt stack into a single loan
- Sale of the property
- Sale or refinance of another asset used to repay the bridge

Lenders will only proceed where the exit comfortably clears all prior charges.

## Talk it through with an adviser

Speak to a Mortgage Lane adviser about your circumstances and the next steps.

Published: 2026-08-04

Last reviewed: 2026-10-08

Source: https://mortgagelane.com/guides/bridging-loans/third-charge-bridging-loans