Will my first charge lender allow a second charge?

Most will, subject to combined LTV limits and their own consent process, and some charge an administration fee. A minority refuse outright as policy. We check the specific lender's stance before you spend money on a valuation.

How is a second charge bridge priced against a first charge one?

Expect roughly 0.15–0.4% per month more, because the lender ranks behind the first charge in a recovery. The comparison that matters is against the cost of breaking your first charge, including any early repayment charge and the rate you would move onto.

Can I get a second charge bridge on a property with a commercial mortgage?

Yes. Commercial first charges are common on these cases; consent and the deed of priority work the same way, and the underwriting focuses on the trading position as well as the asset.

What is a deed of priority?

The written agreement between the two lenders that sets out who gets repaid first and in what circumstances. It is a standard document but it must be negotiated before completion, which is why solicitor selection matters on these cases.

Is there a minimum loan size?

Most second charge bridging lenders start around £50,000, with the widest choice of pricing above £150,000.

Short-term property finance

Second Charge Bridging Loan

A second charge bridging loan raises short-term capital against a property that already carries a mortgage, sitting behind the existing lender rather than replacing it. It is used when the first charge is on a rate or an early-repayment penalty you do not want to disturb, and you need funds quickly for a purchase, a tax bill, a works programme or a business injection. Lenders look at combined loan to value — first charge plus new facility — usually up to 70–75%, price from around 0.85% per month, and require the first charge lender's written consent, which is the single most common reason these cases slow down or fail.

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At a glance

Criteria and pricing

What lenders on our panel will typically do on this product today.

Maximum combined LTV: Typically 70–75% (first charge plus second)
Minimum equity behind the first charge: Usually 25%+
Rate: From ~0.85% pcm; 1.0–1.5% pcm where combined LTV is high
Term: 3–18 months
Arrangement fee: Typically 1.5–2%
First charge consent: Required in writing — allow 5–15 working days
Exit: Sale, refinance of both charges, or a defined liquidity event
Use of funds: Purchase deposit, works, tax liability, business capital, chain break

Worked example

Worked example — capital raise behind an existing BTL mortgage

Property value: £750,000
Existing first charge: £375,000 (50% LTV, 3 years of a 5-year fix remaining)
New second charge at 70% combined: £150,000
Rate at 0.95% pcm, serviced over 12 months: ≈ £17,100 interest
Arrangement fee at 2%: £3,000
Cost of instead redeeming the first charge (ERC at 3%): £11,250 plus a higher new rate
Exit: Refinance of both charges at the end of the fixed term

Figures are typical UK market ranges as at 2026 and are indicative only — your terms depend on the asset, the exit and the lender we place the case with.

Honest fit

Who this works for — and who it does not

You are likely to qualify if

Meaningful equity — combined borrowing after the new facility below about 75%
A first charge lender willing to grant consent to a second charge
A clearly evidenced exit within the term, not an open-ended intention
Clean recent conduct on the first charge; arrears are usually fatal to the case
Investment or commercial property; consumer buy-to-let is handled on a narrower panel

This is the wrong product if

Cases where the first charge lender refuses consent — a refinance of the whole debt is then the route
Combined LTV above about 75%, where pricing rarely justifies the raise
Long-term borrowing needs; a second charge bridge is expensive money held briefly
Borrowers with no exit beyond refinancing on terms they cannot yet evidence they would qualify for

Timescales

What actually happens, and when

Day 0–1
Position check
We confirm the combined LTV, the first charge terms and whether the exit stands up before anything is submitted.
Day 1–3
Terms and consent request
Indicative terms issued and the consent request goes to the first charge lender the same week — this runs in parallel, not after.
Day 5–15
Consent and valuation
First charge consent is the long pole. Valuation is instructed alongside so nothing waits on it.
Day 15–25
Legals and completion
Deed of priority agreed between lenders, legals completed, funds released. Three to four weeks is realistic; faster where consent comes back quickly.

Questions

Frequently asked

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