Introduction
You’ve found the perfect investment property—but the clock is ticking. Traditional lenders are too slow, and you’re at risk of losing the deal. Enter the second charge bridging loan: a rapid funding solution that can deliver capital in just days.
As experienced bridging loan brokers, we’ve helped countless business owners, landlords, and developers unlock equity quickly without disrupting existing mortgages. In this article, we’ll explain what second charge bridging loans are, how they work, and why they might be your fastest route to completion.
What Is a Second Charge Bridging Loan?
A second charge bridging loan is a short-term secured loan taken out against a property that already has a mortgage or first charge loan in place. Unlike a remortgage, it doesn’t require changing your current lender or refinancing the entire property.
Instead, it “sits behind” your main mortgage, using the available equity in the property to raise funds—often within 3 to 7 working days.
This makes it ideal for time-sensitive scenarios where speed and flexibility are essential.
Why Use a Second Charge Bridging Loan?
Here are the most common situations where this type of loan can rescue a deal:
1. You Need Funds Without Refinancing
Refinancing a property can take weeks—or longer if tied to fixed mortgage terms. A second charge loan lets you release funds without disturbing your primary mortgage, avoiding fees or penalties.
2. You Have Equity, But Not Liquidity
Many property investors and business owners are asset-rich but cash-poor. A second charge bridge unlocks equity that would otherwise remain untapped.
3. You’re in a Chain-Break Situation
If a buyer pulls out of your chain or your sale is delayed, you can still complete your purchase using a short-term second charge loan to bridge the gap.
4. You’re Securing a Property Below Market Value
If you’ve negotiated a deal at below-market value, moving fast is crucial. Sellers don’t wait—and bridging finance ensures you don’t miss out.
Key Benefits of Second Charge Bridging Loans
- Fast access to funds (often in under 5 days)
- No need to repay or remortgage your current mortgage
- Flexible terms (usually 3 to 12 months)
- Interest can be rolled up or retained
- Available to individuals, landlords, and limited companies
- Can be used for residential, investment, or commercial properties
Example Scenario: Bridging the Gap in 5 Days
A client approached us needing £150,000 to complete a commercial property purchase after their buyer fell through at the last minute.
Their main residential property had a mortgage, but significant equity. Within 24 hours, we secured a second charge bridging loan using their residence as collateral. The funds were released within 5 working days—allowing them to complete on time, avoid penalties, and turn a profit from the new property within months.
How Much Can You Borrow?
Most lenders offer up to 75% Loan-to-Value (LTV) across both the first and second charge loans, depending on:
- Your available equity
- Property type and condition
- Exit strategy (how you plan to repay the loan)
- Credit profile (flexible criteria, not always credit-score driven)
What’s the Catch?
There isn’t one—provided you understand that this is short-term finance designed to solve a timing problem. It’s not a substitute for a mortgage or a long-term loan.
Second charge bridging loans are typically repaid through:
- Sale of the property
- Refinancing onto a buy-to-let or commercial mortgage
- Business cash flow or investor exit
How Do Second Charge Loans Compare to Remortgaging?
While remortgaging is a common way to access equity, it’s often not the best option when speed is a priority. Remortgaging involves a complete overhaul of your existing mortgage, which includes:
- Full credit checks and income assessments
- Valuations and legal processes
- Potential early repayment charges
- Loss of favourable mortgage rates
In contrast, second charge bridging loans:
- Leave your existing mortgage untouched
- Offer significantly faster access to funds
- Require less paperwork
- Can be more cost-effective in the short term
For property investors who need to move quickly, a second charge loan provides a targeted financial solution that doesn’t interfere with long-term mortgage planning.
Common Mistakes to Avoid When Applying
Second charge bridging loans can be incredibly effective—but only when used correctly. Here are the most frequent pitfalls we help clients avoid:
1. Not Having a Clear Exit Strategy
Lenders need to see a realistic plan for how you’ll repay the loan—whether through refinancing, sale, or business income.
2. Overestimating Property Value
Work with brokers and lenders who use reliable valuations to avoid funding shortfalls.
3. Ignoring Fees and Interest Structures
Understand:
- Arrangement fees
- Valuation fees
- Legal fees
- Whether interest is rolled-up, serviced monthly, or retained
4. Choosing the Wrong Broker or Lender
Work with brokers like Sunrise Commercial who have access to a wide panel of lenders and can tailor the deal to your specific circumstances.
Frequently Asked Questions (FAQs)
How fast can I get a second charge bridging loan?
Most deals complete in 3 to 7 working days, sometimes within 48 hours.
Do I need a perfect credit score?
No. Lenders focus on the property and your exit strategy more than your credit history.
Can I get a second charge loan on a buy-to-let or commercial property?
Yes. These loans are available on residential, investment, semi-commercial, and commercial properties.
What happens if I can’t repay on time?
Lenders may work with you to extend or refinance. However, always have a solid exit plan in place.
Is the interest rate higher than a mortgage?
Yes—but this is short-term finance. You’re paying for flexibility and speed, not a long-term solution.
Why Work With Sunrise Commercial?
At Sunrise Commercial, we specialise in fast, flexible bridging finance—including second charge loans. We understand how critical timing is in property transactions.
Here’s what we offer:
- Access to over 50 trusted UK bridging lenders
- Fast-track underwriting and completion
- Transparent terms with no surprises
- Dedicated broker support from start to finish
- FCA-regulated service you can rely on
Our mission is simple: fund deals fast, protect your investment, and help you grow.
Final Thoughts
Second charge bridging loans are one of the most powerful tools in the property investor’s toolkit—especially when time is limited and the opportunity is too good to miss.
With the right broker and a strong exit plan, you could access funds in days—not weeks—and secure your next property investment without delay.
Ready to Move Quickly?
Speak to the team at Sunrise Commercial today. We’ll assess your needs and help you secure the best second charge bridging loan for your situation.
📞 Call us at 07939 091418
📧 Email: john@sunrisecommercial.co.uk
🌐 Enquire online: https://sunrisecommercial.co.uk/contact
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