Lendus.

Second Charge Bridging Loans

Access the equity in your property without disturbing your existing mortgage. A second charge bridging loan sits behind your first mortgage lender, unlocking capital from property you already own — for a business opportunity, a property purchase, tax liabilities, or any purpose where speed matters. You keep your existing mortgage terms intact, avoid early repayment charges, and repay the second charge bridge from a defined exit event.

200+ UK lenders
2-minute application
No credit check to apply
FCA-regulated brokers

Rates

0.6% – 1.5%

per month

Typical Term

1-18 months

Max LTV

Up to 65%

Amount

£25k – £2m

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How it works

1

The second charge lender assesses the open market value of the property and confirms the outstanding balance on your first mortgage. The difference between the OMV and the first charge (subject to LTV limits) determines the available equity.

2

Your first mortgage lender must be notified and, in most cases, must consent to the second charge being registered against the property. Most mainstream lenders will grant consent as a matter of course.

3

Legal work involves two sets of solicitors (yours and the lender's) and a charge registration at HM Land Registry. Completion typically takes 7-21 days, depending on the responsiveness of your first lender.

4

The funds are released for your intended purpose. At the end of the term, you repay from a defined exit — property sale, remortgage, business sale proceeds, or an inheritance.

When to use this type of bridging

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Risks to consider

Important

  • A second charge lender ranks behind the first mortgage lender in the event of a repossession, so if the property is sold under duress, the first lender is repaid first and the second charge may not be fully recovered — reflecting why second charge rates are higher than first charge rates.
  • Failure to repay the second charge bridge on time can trigger default procedures that ultimately result in the second charge lender seeking possession, even if your first mortgage is current.
  • The combined first and second charge debt must remain within the lender's LTV limit; if property values fall, the second charge lender may have less security than they initially assessed.

Market context

The UK second charge mortgage market completed approximately 35,000 transactions valued at £1.7 billion in 2025 (Finance & Leasing Association). Second charge bridging represents a growing subset of this market, driven by borrowers locked into fixed-rate first mortgages with 2-5 year ERCs who need to access equity without triggering penalty charges. The average outstanding first mortgage in the UK is approximately £145,000, leaving substantial equity available in a market where average house prices are around £285,000.

Frequently asked questions

Do I need my existing mortgage lender's permission for a second charge?
Yes — your first mortgage lender must be notified and must consent to the second charge being registered against the property. In practice, most institutional mortgage lenders (banks, building societies) have a standard process for granting consent and do so within 5-15 working days without requiring detailed information about the second charge lender or the purpose of the funds. Smaller or private first charge lenders may be more cautious and take longer, so confirm this early in the process.
How is the maximum second charge amount calculated?
The second charge lender will advance up to 65% of the open market value of the property, less the outstanding balance on your first mortgage. For example: if your property is worth £500,000 and your first mortgage balance is £200,000, the maximum second charge advance is (£500,000 x 65%) - £200,000 = £125,000. Some lenders will consider slightly higher combined LTVs if you have an exceptionally strong credit profile or the property is in a prime location.
Is a second charge bridge regulated by the FCA?
If the second charge is secured against your primary residence, it is regulated by the FCA under the Mortgage Credit Directive and the Consumer Credit Act, giving you strong consumer protections. If it is secured against an investment property or commercial asset, it falls outside consumer credit regulation. FCA-regulated second charge bridges carry the right to a 7-day cooling-off period, a pre-contract information pack, and recourse to the Financial Ombudsman Service if you have a complaint.
Can a second charge bridge be used for business purposes?
Yes — many second charge bridging loans are taken for business purposes: funding working capital, completing a business acquisition, paying HMRC liabilities, or injecting equity into a commercial property purchase. When the purpose is business-related and the security is a property owned personally, the regulatory treatment depends on the property type and the lender's assessment of whether the transaction is primarily for business or personal purposes. A specialist broker will advise on the correct regulatory framework for your situation.
What happens to the second charge if I sell the secured property?
When the secured property is sold, the solicitor handling the sale will discharge both the first and second charge simultaneously from the sale proceeds at completion. The first charge lender is repaid first, then the second charge lender, and any remaining equity comes to you. If the sale proceeds are insufficient to repay both lenders in full (for example, in a distressed sale), the shortfall on the second charge becomes an unsecured personal debt that the lender may pursue separately.

Related bridging loans

Buy Before Selling House Purchase Regulated Bridging

Guides and resources

How Bridging Loans Work Bridging Loan Costs Bridging vs Mortgage Best Bridging Lenders Together Money Review

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