Second Charge Bridging Loan in London: £135,000 Secured at 36.2% LTV
When a mainstream mortgage fails on affordability, a second charge bridging loan in London can release the capital you need without triggering the same income stress-test. On this case, Together had declined the mortgage route. A2Z restructured the raise as an unregulated 2nd charge bridge against the client's existing London home — £135,000 released at 36.2% LTV, funding the next investment property purchase.
£135,000
Loan amount
36.2%
Loan-to-value
18 Months
Term
April 2026
To completion
The Client Scenario: Why a London Homeowner Needed a Second Charge Bridge
Our client — an employed homeowner based in London — wanted to expand their portfolio by acquiring another investment property. The plan was straightforward on paper: release capital from their existing home and use it as the deposit and purchase funds for the next property.
The existing home is valued at £1.2 million , with significant equity behind the first charge mortgage. On asset grounds, the capital raise was entirely rational. The friction was income — the client's PAYE salary wasn't large enough to pass mainstream affordability stress-tests on a further mortgage advance.
That's where the case had previously stalled. It had been placed with Together , but the affordability assessment on the mortgage route wasn't passing. Without a quick alternative — such as a second charge bridging loan in London — the investment purchase was at risk of falling away.
What Could Have Gone Wrong
Affordability-driven declines are one of the hardest blocks to unpick in a hurry. If the income doesn't fit the lender's model, re-papering the same application rarely changes the outcome — it just burns time.
On this case, the real risk wasn't the numbers. It was sequencing: the investment property purchase had a timeline, and the client's equity was sitting idle while the mainstream route stalled.
- Affordability decline at Together with no clear like-for-like alternative on the mainstream mortgage market
- Investment property purchase deadline slipping while income was re-documented for a different lender
- Significant home equity sitting unusable because the raise was being assessed on income, not asset
- Client pushed into a weaker deal elsewhere — or walking away from the investment purchase entirely
The Solution: A Second Charge Bridging Loan in London
We pivoted the raise from an income-led mortgage to an asset-led second charge bridging loan in London . Because the funds were for a business purpose (investment property purchase) and secured by 2nd charge on the client's home, the case qualified as an unregulated 2nd charge bridge — assessed primarily on security and exit, not monthly affordability.
We presented the client with a shortlist of lender options so they could weigh rate, term and exit route against each other. The client chose MT Finance : £135,000 at 0.90% per month , 18-month term, interest-only . With a combined LTV of just 36.2% against the £1.2 million valuation, the lender had strong security cover — and approval followed quickly.
- Re-routed the case from a mainstream mortgage to an unregulated 2nd charge bridge
- Positioned the raise as asset-led — removing income affordability as the decision criterion
- Shortlisted multiple bridging lenders and presented clear side-by-side options to the client
- Placed with MT Finance on 18-month interest-only terms at 0.90% pm
- Kept combined LTV at 36.2% to secure the strongest lender comfort and pricing
- Mapped a clear exit upfront — refinance or sale once the investment purchase completed and income position strengthened
The Outcome
£135k
Facility Secured
36.2%
Combined LTV
18mo
Interest-Only Term
0.90%
Per Month Rate
Declined Case Rescued
Investment Property Purchased
Frequently Asked Questions
Can I get a bridging loan if my income is too low for a standard mortgage?
Yes. Bridging lenders assess primarily on security and exit, not monthly affordability. On this case the client's PAYE salary had failed Together's mortgage stress-test — but on an asset-led 2nd charge bridge against their £1.2m home, with a combined LTV of 36.2%, MT Finance approved the £135,000 facility quickly. Interest-only terms meant no monthly affordability hurdle.
What is a second charge bridging loan in London?
A second charge bridging loan in London sits behind your existing first mortgage. The first-charge lender keeps priority; the bridging lender takes a secondary legal charge over the remaining equity. It's a fast way to unlock capital from a property you already own without touching or refinancing the first mortgage. Where the funds are used for a business purpose — such as buying an investment property — the facility is typically unregulated. Bridging lenders sit on the FCA Register and their brokers (like A2Z) are FCA-authorised.
Can I use a bridging loan to buy an investment property?
Yes — and it's a common use case. If you have equity in your existing home, a 2nd charge bridge lets you release capital to fund the deposit or full purchase of an investment property, even where your income doesn't support a conventional further advance. The exit is usually refinance onto a buy-to-let mortgage, sale of one of the properties, or a longer-term refinance once the income position has strengthened.
What happens if my mortgage application is declined on affordability?
A decline on affordability usually means the lender's stress-test doesn't support the loan amount on your current income. Re-submitting the same shape of application to another mainstream lender often produces the same result. The alternative — as on this case — is to restructure the raise entirely: asset-led finance, such as a 2nd charge bridge at a conservative LTV, can release the capital you need without triggering the same affordability test.
How much can I borrow against my home on a 2nd charge bridge?
It depends on the value of the property, the size of your existing first mortgage, and the lender's combined LTV appetite. Most bridging lenders will consider combined LTVs up to around 70–75% on residential security, with the sharpest rates reserved for lower LTVs. On this case, the combined LTV of 36.2% gave MT Finance strong security cover and unlocked competitive terms.
Facing a Tight Deadline of Your Own?
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