Second charge bridging finance
Second Charge Bridging Loans Surrey
Release equity from a property without disturbing the existing first-charge mortgage. Investment, BTL and limited company structures across the KT, GU and RH belts.
- Decisions in hours
- Completion in days
- £100k to £25m
- Surrey specialists
Surrey · Surrey
Bridge to your next move.
About second charge bridging
Short-term property finance across Surrey and the South East England.
Second charge bridging sits behind an existing first-charge mortgage on a property. Rather than refinancing the whole loan, the borrower keeps the existing first-charge facility in place and the second charge releases additional equity for the next deal, the next refurbishment, or a separate capital need. The product matters where the first-charge mortgage carries an attractive long-term rate, an early repayment charge, or a portfolio relationship the borrower wants to preserve. For Surrey landlords and investors with stable first-charge debt across their portfolio across the GU, KT and RH belts, second charge bridging is the cleanest way to unlock equity without disturbing the senior position.
Second charge bridging suits property investors, landlords, limited company SPVs and small developers with existing first-charge debt that they do not want to refinance. Typical Surrey borrowers include landlords with portfolio BTL debt at fixed rates from the 2024 or 2025 vintage that they would rather not break, investors needing a deposit for the next purchase, and limited companies releasing equity for refurbishment works on another property. The product also fits owner-managed businesses raising short-term capital against commercial premises across the Surrey Research Park, the Brooklands office campus or the Slyfield trade estate while preserving a long-term commercial term loan. It is the wrong product where the borrower has high-rate first-charge debt that ought to be refinanced anyway, in which case a single replacement facility makes more sense.
A typical case
How a second charge bridging case runs in Surrey.
A portfolio landlord with 13 BTL units across Camberley, Frimley, Redhill and the wider GU and RH catchments wants to buy a tired three-bed in Reigate for £385,000 with a refurb-to-let plan. The landlord has £320,000 of equity available in a five-year BTL fix on a Camberley property, but the existing fix has 38 months left at 4.2% with a 5% early repayment charge. Breaking the fix costs more than the bridge over the next 12 months. We package a second charge bridge against the Camberley property, total £240,000, sitting behind the existing first-charge mortgage at 65% combined loan to value. **LendInvest** and **Together** both quote; the lead facility comes in at 1.05% per month, term 12 months, rolled-up interest. The funds bridge the Reigate purchase and works. The landlord refurbishes Reigate, lets at £1,950 per month, and refinances Reigate to a standalone BTL at month 9, redeeming the second charge. The Camberley first-charge mortgage stays untouched. Similar mechanics work for landlords across Surrey whenever first-charge debt is locked at attractive rates that should not be broken.
Rates and fees
What this product costs.
Second charge bridging prices between 0.85% and 1.5% per month, materially above first-charge bridging because the lender's recovery position is subordinated to the existing senior mortgage. Cases at low combined loan to value with a strong first-charge lender, a clear exit, and an experienced borrower sit at the lower end of that band. Higher combined loan to value, less liquid security, or a less institutional first-charge lender pushes the rate up. Arrangement fees run 1.5% to 2.5% of the loan. Valuation fees apply to the second-charge property, typically £700 to £1,800 for residential security across Surrey. Borrower and lender legal fees of £2,000 to £4,500 per side, with an additional layer of legal work to negotiate the deed of priority between the two charges. No exit fee on most products.
Loan size and term
LTV ceiling and how long you borrow for.
Second charge bridging typically caps the combined loan to value, across the first charge and the second charge together, at 70% to 75% against open market value. The second charge itself is often 10% to 20% of the property value, with the first-charge facility making up the rest of the senior debt. Terms run 1 to 24 months, with most cases using 12 months.
Exit options
How the loan redeems.
Second charge bridging has three main exit routes. First, refinance both the first and second charges onto a single replacement facility, typically a portfolio BTL or commercial investment mortgage. Second, redeem the second charge alone from sale or refinance of another asset in the portfolio. Third, sale of the security property, with both charges redeemed from the proceeds. Lenders want a credible exit at the offer stage, and they want comfort that the first-charge lender will consent to the second charge being registered. A deed of priority is signed between the two lenders at drawdown.
What makes a deal work
The clean cases.
Second charge cases run cleanly when the first-charge lender is an institutional name that handles second charge consents routinely, when the combined loan to value is genuinely sensible, when the borrower has a track record, and when the exit is clear. Cases with a portfolio BTL lender holding the first charge tend to run smoothly because those lenders have established second-charge consent processes. Cases also strengthen where the borrower has skin in the game and where the second-charge facility is being used productively rather than for consumption.
What doesn't
Where cases break.
Cases break where the first-charge lender refuses second-charge consent, which sometimes happens with smaller building society first-charge facilities or with older lifetime mortgage products. Cases also fail where the combined loan to value pushes too high, where the borrower has no clear exit, or where the deed of priority negotiations break down. We screen first-charge lender consent early on every case to avoid wasted work across the Surrey portfolio landlord base.
Our process
From first call to drawdown.
Step one, a triage call. Bring the property, the first-charge lender and balance, the use of funds, the exit plan, and the borrower profile. Step two, we screen first-charge consent informally where possible, then package the case and put it to three or four second-charge lenders. Indicative terms back inside 48 hours. Step three, valuation and legals instructed in parallel. Step four, deed of priority negotiated between the first and second-charge lenders. Step five, full credit at the second-charge lender, typically 5 to 10 working days. Step six, drawdown. Standard timeline from triage to drawdown is 14 to 28 working days, longer than first-charge work because of the deed of priority. Second charge bridging on investment and commercial security is not regulated by the Financial Conduct Authority. We are not directly authorised by the Financial Conduct Authority; we work with FCA-authorised partners for regulated lending.
Talk to us
Tell us about the deal.
A quick triage call, then indicative lender terms inside 24 hours. We work Surrey and across Surrey.
FAQs
Frequently asked questions on second charge bridging
Do I need consent from my first-charge mortgage lender?
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Yes. Every second charge registered against a property requires the consent of the first-charge lender, formalised through a deed of priority signed between the two lenders. Institutional first-charge lenders handle these consents routinely, often inside 5 to 10 working days. Smaller lenders or specialist products sometimes refuse, which is why we screen consent early on every case before committing to the lender appetite.
How much can I borrow on a second charge bridge in Surrey?
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Combined loan to value across the first charge and second charge together is typically capped at 70% to 75% of open market value, with the second charge itself usually 10% to 20% of property value. On a Surrey property worth £800,000 with a £400,000 first-charge mortgage, that leaves headroom for a second charge of around £160,000 to £200,000. The exact ceiling depends on the property type, the borrower profile, and the first-charge lender's consent terms.
Can second charge bridging fund a deposit on another property?
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Yes. Using a second charge to release equity for a deposit on the next property is one of the most common uses of the product among Surrey portfolio landlords. The new property is then financed with its own first-charge facility, and the second charge bridge redeems when the portfolio is refinanced or another asset is sold. The structure preserves the favourable first-charge debt while still allowing portfolio growth across the GU, KT and RH belts.
Next step
Talk to a Surrey bridging specialist about second charge bridging.
Indicative terms in 24 hours. We work second charge bridging cases across Surrey and the wider Surrey market on a same-day enquiry response.