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Second charge bridging loans: "Use them as often as you would drink a full sugar coke — sparingly"

ended 15. April 2025

Newspage asked brokers and active property investors for their views on second charge bridging loans, the reasons they are typically used and any potential downsides. Adam Stiles, MD at Helix Financial Partners, said “second charge bridging can unlock equity for the purposes of providing a deposit for an onward purchase whilst the current property sells”, while adding that “some people use it to settle urgent tax bills where most traditional lenders will not allow this”. “The first port of call”, he continued, “should always be to see if the current lender will consider a further advance”. Meanwhile, active property investor and portfolio landlord, Kundan Bhaduri of The Kushman Group, said “scond charge bridges can be ”a valuable financial tool, especially in a fluctuating market" but warned: “Use them as often as you would drink a full sugar coke — sparingly.” Views below.

5 responses from the Newspage community

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Adam Stiles
Managing Director at Helix Financial Partners
We typically see it when the first charge is tied in and there are penalties for refinancing, but there's equity they can access. If you're selling the property, a lot of secured loan term lenders won't lend, but second charge bridging can unlock equity for the purposes of providing a deposit for an onward purchase whilst the current property sells for instance. Some people use it to settle urgent tax bills where most traditional lenders will not allow this as a reason to lend money. Bridging is fast but expensive so all factors should be considered whenever looking into a second charge bridging loan. The first port of call should always be to see if the current lender will consider a further advance. Second charges require the consent of the first charge lender, which is not always given, so consent should be sought at the earliest opportunity.
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Kundan Bhaduri
Entrepreneur, International Exporter and Property Developer at The Kushman Group
As a property developer, second charge bridging loans have stood out as a valuable financial tool, especially in a fluctuating market. These loans offer flexibility and rapid access to capital, crucial for developers like us who need swift funding to seize opportune moments, such as acquiring undervalued properties or financing renovations before resale. Unlike traditional loans, a second charge bridge allows us to secure funds using equity in properties, all without altering our primary mortgage arrangements, which is essential for maintaining ongoing developments. However, while the allure of quick financing is undeniable, it's essential to approach second charge bridging loans with a strategic mindset. Use them as often as you would drink a full sugar coke — sparingly.
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Harry Goodliffe
Director at HTG Mortgages
Second charge bridging loans can be really handy — but they’re not without risk. They’re great for unlocking equity quickly without touching your main mortgage, and lenders like MT Finance, Together, Precise, and West One are in this space. But rates are higher, and because the loan sits behind your first charge mortgage, it can get risky if things don’t go to plan. It’s not something to jump into without proper advice.
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Sean Horton
Managing Director at Respect Capital
Second charge bridging loans allow access to the equity in a property that you already own. They're perfect if you need quick cash for an opportunity but don't want to refinance your entire mortgage, especially if you've got a cracking rate you'd lose. As with all bridging loans, the idea is to borrow just for a short while, most loans only last for 12 months. Our clients use them for two main purposes. First, to help break a property chain by tapping in to the current equity, which then helps finance the new house purchase. Second is where property investors and landlords regularly use them to raise funds for a new project. They know what they're doing. Raise the money, do the deal, then repay the bridge. Repeat. To many people, bridging is seen as risky and expensive. In reality it is simple, streamlined and quick. That's if you know what you're doing.

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Pete Mugleston
Mortgage Advisor & Managing Director at Online Mortgage Advisor
Second charge bridging loans are useful if borrowers are looking to access funds quickly but don't want to touch their main mortgage. It's usually specialist lenders, like Together and MT Finance, that offer these types of mortgages. While they have advantages, such as keeping the rates on your current mortgage rather than remortgaging, there are downsides. The interest rates will be higher than a standard mortgage, and borrowers will be making two mortgage payments instead of one, which can impact day-to-day finances. They're best used with professional help, as the risks can outweigh the benefits if you're unfamiliar with bridging loans.