£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.
£174,790
Loan amount
56%
Loan-to-value
12 Months
Term
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:
- First-charge lender refusing or delaying consent to register a second charge
- Combined borrowing pushing LTV beyond the first lender's tolerance
- A business-purpose loan being mis-structured and slowed by the wrong regulatory route
- Funds released too late, costing the client the onward investment purchase
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 .
- Confirmed the business and investment purpose and structured it as an unregulated second charge
- Secured formal consent from the first-charge lender to register the second charge
- Kept combined borrowing at 56% LTV — comfortable for both lenders
- Sourced an interest-only facility to keep monthly cost low while the funds were deployed
- Ran valuation, legals and lender liaison end to end through to completion
The Outcome
£174.8k
Capital Released
56%
Combined LTV
0.84%
Per Month, Interest-Only
12mo
Bridging Term
First-Charge Consent Secured
Client Returned With More Deals
Frequently Asked Questions
Can I take a second charge bridging loan on my own home to buy investment property?
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.
What is a second charge bridging loan?
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.
Do I need my existing lender's permission for a second charge?
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.
What LTV can I get on a second charge bridge?
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.
Facing a Tight Deadline of Your Own?
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