The Untold Hack UK Landlords Use to Buy More Properties—Without Touching Their Mortgage
Why UK Landlords Are Avoiding Remortgaging in 2025
If you’re a UK landlord or aspiring property investor, you’ve probably felt the sting of rising interest rates, stricter affordability checks, and frustrating mortgage delays. Remortgaging—once a popular way to release equity—has become a slow, expensive, and often counterproductive option.
So, what are savvy property investors doing instead?
They’re turning to a smarter alternative: second charge bridging loans.
This flexible, fast form of finance allows landlords to raise funds against their existing properties—without touching their current mortgage deal.
At Sunrise Commercial Finance, we help landlords, developers, and investors tap into this strategy to grow their portfolios faster than ever.
What is a Second Charge Bridging Loan?
A second charge bridging loan is a short-term loan secured against a property that already has a mortgage (first charge) in place.
Instead of replacing the mortgage, it sits behind it, allowing you to unlock the equity in your property without refinancing or remortgaging.
Here’s how it works in simple terms:
- You own a property worth £400,000
- Your existing mortgage is £150,000
- You have £250,000 in equity
- A second charge bridge could release up to 70–75% of the property’s value (inclusive of the mortgage)
- That means you could raise around £100,000+ as a second charge loan—fast
Funds can typically be used for:
- Purchasing another property
- Funding refurbishments or conversions
- Bridging a short-term funding gap
- Buying at auction
- Avoiding delays with traditional lenders
Why Landlords Are Choosing Second Charge Bridging Over Remortgaging
1. Speed of Completion
Most second charge bridging loans complete in 5 to 21 days, compared to 6–10 weeks for a remortgage. In today’s market, speed = opportunity.
2. Keep Your Existing Mortgage
Why give up a favourable 1.5% tracker or fixed rate from 2020, only to end up with a 6%+ rate today? Second charge lending protects your current terms.
3. Minimal Interruption
Remortgaging often requires legal work, property revaluation, credit scoring, and full affordability checks. Bridging can often skip or simplify many of these steps.
4. Flexible Use of Funds
From buying an auction property to funding a refurbishment or paying tax bills, bridging finance is incredibly versatile.
Real-Life Success Story: Investor Case Study
One of our clients, James, owned a rental flat in Bristol worth £350,000 with an outstanding mortgage of £140,000. He wanted to raise capital for a below-market auction property but didn’t want to touch his 1.79% fixed rate mortgage.
Using a second charge bridging loan, we helped him unlock £90,000 in under two weeks.
He used the funds to secure the auction property, complete a light refurbishment, and refinance it six months later—making a clean £38,000 profit, without ever remortgaging his original flat.
Second Charge Bridging vs Remortgaging: Pros and Cons
| Feature | Second Charge Bridging Loan | Remortgaging |
| Speed | 5–14 days | 6–10 weeks |
| Keeps existing mortgage deal | ✅ Yes | ❌ No (new terms apply) |
| Early repayment charges avoided | ✅ Usually | ❌ Often apply |
| Credit & affordability checks | Light / flexible | Full affordability checks required |
| Flexibility of funds | ✅ High (auction, refurb, short-term use) | ❌ Limited (mainly long-term borrowing) |
| Term length | 3–18 months (short-term) | 2–5+ years (long-term commitment) |
Is a Second Charge Bridging Loan Right for You?
This strategy works best for:
- Equity-rich landlords who want to grow their portfolios
- Investors buying below market value or at auction
- Property developers needing quick access to capital
- Anyone tied into a favourable mortgage deal they don’t want to lose
You should have:
- A strong exit strategy (e.g. sale, refinance, flip)
- Sufficient equity in your existing property
- A property that lenders are happy to secure a charge against (not derelict)
Frequently Asked Questions (FAQs)
1. Can I get a second charge bridge on my main residence?
Yes—but it’s more commonly used on buy-to-let or investment properties. You’ll need to prove a clear, time-bound exit strategy and demonstrate how the loan will be repaid.
2. How much can I borrow with a second charge bridging loan?
Typically up to 65–75% Loan-to-Value (LTV) across both charges, depending on the property type, borrower profile, and lender criteria.
3. Is it more expensive than a traditional mortgage?
Yes, bridging is short-term and priced accordingly. Interest is often rolled up and repaid at the end. But for fast-moving opportunities, the returns often justify the cost.
4. What happens if I can’t repay on time?
You must have a clear exit strategy. If you struggle to repay, lenders may agree to extend the term—but this may incur additional fees and interest.
5. Will it affect my credit score?
Not usually—unless you default. Many bridging loans don’t appear on your credit report if repaid on time and managed properly.
How Sunrise Commercial Finance Can Help You
As specialist brokers in bridging loans, second charges, and property development finance, we:
- Have access to over 100 UK lenders
- Understand how to navigate second charge placements
- Can tailor solutions to landlords, first-time investors, and developers
- Work fast—so you don’t lose deals waiting for funding
Whether you’re refinancing, expanding, or just exploring options, we’re here to structure the most suitable and competitive deal—fast.
Take the Next Step
Thinking of expanding your property portfolio without remortgaging? Want to unlock equity the smart way?
✅ Contact Sunrise Commercial Finance today for a free, no-obligation consultation.
📞 Call us at 07939 091418
📧 Email: john@sunrisecommercial.co.uk
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