In the fast-moving world of UK property investment and development, time is money. Whether you’re securing a below-market-value property, bidding at auction, or facing an urgent refurbishment deadline, access to fast capital can make or break your deal.
When your main lender can’t move quickly enough—or refinancing takes too long—a second charge bridging loan can be the perfect financial lifeline. At Sunrise Commercial Finance, we help inexperienced and experienced investors alike access flexible funding solutions, often within days, not weeks or months.
This guide explains everything you need to know, in plain English.
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 or loan registered on it. The first lender (usually a bank or building society) holds the first charge, meaning they have first rights to the property if it needs to be repossessed.
The second charge lender takes a secondary position, meaning they’re repaid only after the first lender in the event of default. While this carries more risk for the lender, it gives you access to capital without needing to refinance your existing mortgage—ideal when time is tight.
Who uses second charge bridging loans?
- First-time developers who need additional capital to start or finish a project
- Property investors looking to complete purchases quickly
- Landlords needing funds for renovations, legal bills, or tax liabilities
- Homeowners who don’t want to disturb an existing mortgage or incur early repayment charges
How Fast Can Funds Be Released?
One of the major benefits of second charge bridging finance is speed. Deals can often complete in as little as 3 to 7 working days once valuation and legal checks are complete.
This makes second charge bridging loans a powerful tool for time-sensitive transactions, such as:
- Auction purchases with tight completion deadlines
- Chain-break scenarios where another buyer falls through
- Urgent refurbishments or development projects
- Capital raising for business or personal use
Gross Loan vs Net Loan: What’s the Difference?
When you receive a quote for bridging finance, you’ll often see gross loan amount and net loan amount listed. It’s essential to understand the difference.
- Gross Loan Amount: This is the total amount being borrowed before fees, interest, and charges are deducted. It includes the full loan plus any interest being retained (if applicable).
- Net Loan Amount: This is the actual amount you’ll receive in your bank account once all fees, arrangement costs, legal expenses, and retained interest have been deducted from the gross loan.
For example:
- Gross Loan: £100,000
- Fees + Retained Interest: £8,000
- Net Loan Received: £92,000
Understanding this distinction helps you avoid funding gaps and ensures you raise enough to meet your actual financial requirement.
Do I Need Consent from My Existing Mortgage Lender?
This is a common question—and an important one.
When taking out a second charge loan, your new lender may seek consent from your first charge lender (your existing mortgage provider). This ensures the main lender is aware there’s another loan secured against the same property.
However, consent is not always required.
Some lenders proceed without formal consent, depending on the loan amount, loan-to-value (LTV), and the lender’s internal risk assessment. Others might require only notification, not permission. We’ll guide you through this process and only approach lenders who can work with your unique situation.
At Sunrise Commercial Finance, we know which lenders require consent and which don’t—this knowledge can shave days or even weeks off your completion timeline.
How Do You Repay a Second Charge Bridging Loan?
Bridging loans are interest-only, short-term facilities, usually lasting between 3–18 months. Your loan is repaid via your exit strategy, which is agreed at the outset.
Common exits include:
- Sale of the property (e.g., after refurbishment or development)
- Refinance onto a longer-term mortgage or buy-to-let product
- Sale of another asset (if bridging is secured across multiple properties)
Lenders will always require a clear and realistic exit plan as part of your application.
Common Eligibility Requirements
Even if you’re new to property development or have a less-than-perfect credit history, second charge lenders may still consider your application. Here’s what they typically look for:
- Sufficient equity in the property
- Strong exit strategy (sale or refinance)
- Basic affordability or security value
- Property condition and type
- Experience (optional, depending on the deal)
Real Case: How We Secured £125K in 6 Days for a First-Time Investor
A recent client approached us in a panic. He’d agreed to purchase a £450,000 BMV property at auction but couldn’t raise the full balance in time. He already owned a flat worth £300,000 with a £150,000 mortgage—plenty of equity.
We secured a £125,000 second charge bridging loan, arranged against his flat, and completed in 6 working days. He didn’t need to remortgage or disturb his current deal. Now he’s refurbishing the new property and planning to refinance once the value increases.
Why Choose Sunrise Commercial Finance?
At Sunrise Commercial, we aren’t tied to one lender. Instead, we work with a panel of trusted bridging finance providers—including second charge specialists—to secure the best terms and fastest results.
With us, you get:
- Expert guidance from start to finish
- Access to exclusive bridging loan products
- Fast approvals and funding—often within days
- Help for first-time developers and complex cases
- Straight talking, no-nonsense advice
Whether you’re buying at auction, need a top-up for a project, or want to raise capital quickly without refinancing—we can help.
Ready to Save Your Deal?
If time is against you, a second charge bridging loan could be your best move. We’ll assess your situation, recommend the best lender, and act fast to protect your opportunity.
Contact us today for a no-obligation chat, or use our quick enquiry form to get started.
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📞 Call us at 07939 091418
📧 Email: john@sunrisecommercial.co.uk
🌐 Visit: https://www.sunrisecommercial.co.uk/
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