What a second charge bridging loan is
A second charge bridging loan is a short-term loan secured on a property that already has a mortgage. The first mortgage stays in place and keeps priority; the bridging lender takes a second charge behind it. Borrowers use it to raise money quickly without repaying a mortgage on a good rate, for example to fund a deposit, a purchase or works before a sale or refinance.
Because the bridging lender is paid only after the first lender if the property is sold, second charge bridging usually costs more than a first charge bridge. Broker data puts second charge residential bridging at roughly 0.85% to 1.35% a month, and most lenders need your first mortgage lender's consent before the loan can complete.
Combined loan to value
Second charge lenders look at combined loan to value: the first mortgage plus the bridging debt, divided by the property value. Typical maximums are around 70% to 80%, depending on the lender and property. Many measure it on the gross bridging debt, which includes rolled-up or retained interest and any fee added to the loan, so the combined LTV rises over the term.
The most you can borrow is the property value times the lender's maximum combined LTV, minus the first mortgage, adjusted for interest and fees when the limit is measured on the gross debt.
Worked example: £100,000 behind a £250,000 mortgage
Your property is worth £600,000 and you owe £250,000 on the first mortgage. You need £100,000 for 12 months at 0.95% a month, rolled up and compounded monthly, with a 2% arrangement fee of £2,000 added to the loan. The gross opening loan is £102,000, interest adds £12,255.22 and the bridging debt at the end is £114,255.22.
Combined LTV is 58.3% on the cash you receive and 60.7% on the gross debt at the end. With a 75% gross combined limit, the most cash you could receive on these terms is £175,046.71, and £235,744.78 of equity would remain at the end.
Regulation, consent and the exit
A second charge bridging loan secured on a home you or your family live in is usually a regulated mortgage contract, with Financial Conduct Authority protections. Loans for investment or business purposes on other property are usually unregulated. Ask the lender or broker which applies before you proceed.
Plan the exit before you borrow: a sale, a remortgage that repays both charges, or other funds. Check whether your first mortgage has early repayment charges if your exit involves remortgaging it.
For a longer-term loan with monthly repayments behind your mortgage, use the second charge mortgage calculator .
To compare net and gross LTV for a first charge bridge, use the UK bridging loan LTV calculator .
Use the right country page
This page stays in pounds and uses UK second charge terms: monthly rates, rolled-up interest, arrangement fees and combined LTV on the gross debt. The country choices above the inputs open separate local pages. Choosing United States opens the US second lien bridge loan calculator, which uses annual rates and origination points. The inputs reset and amounts are not converted.
Inputs for the second charge bridging loan calculator
Property value
The value of the property, ideally the lender's valuation.
First mortgage balance
What you still owe on the first mortgage, which stays in place and is repaid first.
Cash you need
The cash to receive from the bridge. Retained interest and a deducted fee are added on top.
Quoted interest rate
The rate in your quote, not the APR. UK bridging is usually quoted per month.
Rate quoted per
Month for a monthly rate. Year (nominal) divides an annual rate by twelve; Year (effective) converts an effective annual rate.
Term
The months you expect to keep the bridge before your exit.
How interest is paid
Rolled-up and retained interest add to the debt and raise combined LTV; serviced interest does not.
Arrangement fee
The lender's fee as a percentage, often 1% to 2%.
Fee based on
Whether the fee is a percentage of the cash you receive or of the gross loan.
Arrangement fee payment
Paid separately, or deducted from the loan, which adds it to the debt.
Lender maximum combined LTV
The highest combined loan to value the lender allows, including the first mortgage.
Limit measured on
Gross debt at the end includes interest and fees; net cash counts only the money you receive.
CALCULATOR QUESTIONS
UK second charge bridging loan calculator questions
Do I need my mortgage lender's permission for a second charge bridge?
Usually yes. Most second charge lenders need consent from the first mortgage lender, which holds priority. Ask your lender early, because consent is not guaranteed.
How much can I borrow on a second charge bridging loan?
Roughly the property value times the lender's maximum combined LTV, often 70% to 80%, minus your first mortgage, less any interest and fees counted against the limit.
Are second charge bridging loans more expensive?
Usually, because the lender ranks behind the first mortgage. Broker data suggests about 0.85% to 1.35% a month for residential second charge bridging.
Is a second charge bridging loan regulated?
If it is secured on your home, it is usually a regulated mortgage contract. Loans on investment or business property are usually unregulated.
What happens when I change country?
The United States option opens the separate US second lien bridge loan page, in dollars, with its own defaults. Your inputs are reset rather than converted.