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2nd Charge Bridging Loans: A Comprehensive Guide

2nd Charge Bridging Loans: A Comprehensive Guide

A 2nd Charge Bridging Loan, also known as bridging finance, is a short-term loan secured against a property that already has a primary mortgage or loan in place (1st charge).

This type of loan allows property owners to unlock additional funds by using the equity in their property while the primary mortgage remains in place.

How Does a 2nd Charge Bridging Loan Work?

Securing the Loan: The property acts as collateral. The loan is registered as a second charge, meaning the primary mortgage (1st charge) has priority over the bridging loan in case of default.

Loan Duration: Typically short-term, ranging from a few months up to two years.

Purpose of the Loan: the 2nd Charge we offer can be used for property investments, refurbishments or developments, as long as the funds are for business-related use.

Key Features of 2nd Charge Bridging Loans

Speed: Usually within days or weeks, which is critical for time-sensitive transactions.

Flexibility: Can be tailored to individual needs and suitable for various purposes, including property investments, renovations, and short-term liquidity issues.

Loan Amount: Based on the available equity in the property. Usually from £50k to £10m. Typically, we offer a loan-to-value (LTV) ratio up to 65% when combined with the existing mortgage.

Interest Rates: Generally higher than standard mortgages due to the increased risk.


– Usually structured as interest-only, with the principal repaid at the end of the term.

– Repayment often sourced from property sales, refinancing, or other liquidity events.

Benefits of 2nd Charge Bridging Loans

Access to Capital:

1. Enables property owners to unlock equity without disturbing the primary mortgage and provides quick liquidity for various financial needs.

2. Faster processing compared to traditional loans.

3. Ideal for urgent financial requirements or property transactions.

4. Funds can be used for diverse purposes, including investments, renovations, and business expansion.

Potential Risks and Considerations

1. Although it reflects the increased risk for lenders, consider higher interest rates. Do ensure you can manage the higher cost of borrowing. It is vital to have a clear exit strategy for repaying the loan.

2. Failure to repay can lead to serious financial consequences, including repossession. Defaulting on the loan can negatively affect credit scores.

How to Apply for a 2nd Charge Bridging Loan

1. First contact: Get in touch with one of our BDMs by phone (0207 052 1652) or e-mail ( to discuss your options. You can also contact a Mortgage Broker who can help you through the application process, acting as your intermediary.

2. Application: Provide details about the property, existing mortgage, and financial needs. You can use our online application form for this purpose.

3. Valuation: If your application is approved, we will conduct a property valuation.

4. Offer: You will receive a loan offer based on the valuation and equity available.

5. Legal Process: Both parties engage with solicitors to handle the legal documentation and ensure all charges are correctly registered.

6. Receiving Funds: Upon completing the legal process, funds are disbursed quickly. Typically, funds are available within days of approval.

Why Choose Us for Your 2nd Charge Bridging Loan?

At The Bridging Group, we specialise in providing flexible and fast bridging finance solutions tailored to your unique needs. With our expertise, you can expect:

– Quick and Efficient Processing

– Competitive Rates

– Expert Guidance

– Tailored Solutions

2nd Charge Bridging Loans are a versatile and efficient financial tool for property owners looking to access additional funds quickly. Whether for investment, renovation, or short-term liquidity, these loans provide a valuable solution.

For more information or to apply, contact us today and let our experts guide you through the process.


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