Unlock equity without disturbing your existing first charge.
A second charge bridge sits behind an existing mortgage or facility. It lets you raise capital against equity in a property without redeeming a first charge that may be on attractive terms or carry early repayment charges.
Second charge lending is assessed on the combined position: the existing debt plus the new facility against the value of the property, together with the consent of the first-charge lender.
- Term
- Short term, typically up to 24 months
- Basis
- Combined loan to value
- Consent
- First-charge lender consent usually required
- Interest
- Retained or rolled
Typical parameters. Every facility depends on the lender, the security and the transaction.
When second charge is the right tool.
- Raising a deposit for the next acquisition
- Funding refurbishment on a property with an existing mortgage
- Short-term capital for a business or investment need secured on property
- Bridging a gap while a longer-term refinance is arranged
- 01
Keep your first charge
Avoid early repayment charges and retain existing long-term terms.
- 02
Speed
A second charge can often be arranged faster than a full refinance.
- 03
Flexible interest
Retained or rolled interest keeps monthly outgoings unchanged during the term.
- 04
Clear exit
Repaid from sale, refinance or another defined event.
From first conversation to funds released.
- 01
Equity review
We confirm the current value, existing debt and the combined loan-to-value the deal produces.
- 02
First-charge consent
The existing lender is approached for consent or a deed of priority where required.
- 03
Terms and valuation
Indicative terms are agreed and a valuation instructed.
- 04
Completion
The second charge is registered and funds are released.
Frequently asked.
In most cases, yes. The first-charge lender's consent is usually needed to register a second charge, and some lenders require a deed of priority. We manage that process.
On the combined position: existing borrowing plus the new facility as a percentage of the property's value, within the lender's combined loan-to-value limit.
Tell us about your deal.
Start with the basics. We'll come back with an initial view and the questions that actually matter.