£174,790 Second Charge Bridging Loan Secured at 56% LTV
A self-employed homeowner in Bedford wanted to expand their property portfolio — but the capital was locked in their own home, already carrying a first-charge mortgage. We arranged a second charge bridging loan of £174,790 at just 56% LTV, secured the first lender's consent, and released the funds to fund the next investment purchase.
Deal Snapshot
The Client Scenario
Our client — a self-employed individual in Bedford — wanted to grow their property portfolio by buying further investment properties. The opportunity was there; the capital was the question.
Most of that capital was tied up in their own home, a residential house valued at £373,000 with an existing first-charge mortgage already in place. They didn't want to disturb that first mortgage, lose a competitive rate, or go through a full remortgage just to release a deposit.
What they needed was a clean, fast way to raise capital against the equity in the home — without touching the first charge — so they could move on the next purchase while it was still on the table.
Because the funds were being raised wholly for business and investment purposes, an unregulated second charge bridging loan was the right structure: it sits behind the existing mortgage, releases equity quickly, and keeps the borrower's main facility untouched.
What Could Have Gone Wrong
This deal completed cleanly — but second charge lending only stays clean when the structure is handled correctly from the start. A second charge sits behind an existing mortgage, which means the first lender has to agree to it.
Get the consent, the purpose, or the loan-to-value wrong, and a straightforward capital raise can stall for weeks or collapse entirely. Here's what we managed out of the process:
The Solution
We managed the case from start to finish. The key piece was securing formal consent from the existing first-charge lender to register a second charge behind their mortgage — the step that most often holds up deals like this. With that agreed, the rest followed cleanly.
We arranged a £174,790 interest-only second charge bridge over a 12-month term at 0.84% per month, keeping combined borrowing at just 56% LTV against the £373,000 valuation — a comfortable position for both the first lender and the bridging lender. Completion ran through in 6–9 weeks.
Need to raise capital against a property you already own?
Self-employed, buying more property, or want to leave your first mortgage untouched — we structure the second charge correctly from day one.
A2Z Bridging Ltd is authorised and regulated by the Financial Conduct Authority · FRN 808769
The Outcome
Want to Release Capital for Your Next Investment?
Whether you're self-employed, building a portfolio, or need to raise funds without touching your existing mortgage — we'll structure it properly and get it done.
A2Z Bridging Ltd · Authorised & Regulated by the FCA · FRN 808769 · We are a broker, not a lender.
Frequently Asked Questions
Yes. Where the funds are raised wholly for business or investment purposes — as on this case, where a self-employed homeowner released equity to buy further investment property — the loan can be arranged as an unregulated second charge bridge. It sits behind your existing mortgage and releases capital without disturbing your first charge.
It's a short-term loan secured against a property that already has a mortgage on it. The existing mortgage stays as the "first charge"; the bridge sits behind it as the "second charge". It lets you release equity quickly without remortgaging or repaying your existing facility — useful when you need capital fast and want to keep a competitive first-charge rate in place.
Yes — the first-charge lender must consent to a second charge being registered behind their mortgage, and this is the step that most often delays these deals. On this case we secured that consent as part of managing the process end to end, which kept the capital raise moving and let the client complete and move on their next purchase.
It depends on the property and the size of the existing mortgage, because lenders look at combined borrowing across both charges. On this deal the combined position was a comfortable 56% LTV against a £373,000 valuation. Lower combined LTVs like this tend to open up better rates and faster decisions, as the lender's risk is well covered.