Comparison
Bridging Loan vs Secured Loan — Which Is Right for You?
Bridging loans and secured loans (also called second-charge mortgages or homeowner loans) both let you borrow against your home alongside an existing mortgage. The differences are speed, term length, and what they're designed for.
Secured loans are long-term — typically 5 to 30 years — at single-digit annualised rates, used to consolidate debt or fund home improvements. Bridging is short-term, days-to-months, at higher monthly rates, used when you need fast access to capital with a clear exit plan.
Confusion between the two is common because both can be raised against your home. The right choice depends entirely on how long you need the money and what you're using it for.
Head-to-head — Bridging vs Secured Loan
| Bridging Loan | Secured Loan | |
|---|---|---|
| Typical rate | 0.55–1.5% per month (~7–18% APR) | 6–12% APR (annualised) |
| Term | 1–24 months | 5–30 years |
| Speed | 2–12 weeks | 4–8 weeks |
| Loan size | £50k–£15m+ | £10k–£500k typical |
| Use case | Property transactions, refurbishment, business cash flow | Debt consolidation, home improvements, large purchases |
| Repayment | Usually one repayment at exit | Monthly capital + interest over the term |
| Early repayment | No penalty (1-month minimum interest) | ERCs typical for first 1–5 years |
| Borrower profile | Property investors, owner-occupiers in a transaction | Homeowners consolidating debt or funding home works |
Pick a bridging loan when
- You need money for under 24 months with a clear exit (sale, refinance, or asset sale)
- You're funding a property transaction (purchase, chain break, auction)
- You're refurbishing a property to sell or refinance
- Speed matters more than the lowest cost
- You can't service monthly payments and need the loan repaid in a single lump sum
Pick a secured loan when
- You want to consolidate existing unsecured debt at a lower rate
- You're funding a home extension, renovation, or major purchase you'll spread over years
- You can comfortably service monthly payments from income
- You don't have a defined exit event — you just want long-term affordable borrowing
- You need the cheapest cost over the loan's lifetime, not just the first 12 months
Worked example
You own a £400,000 home with a £200,000 mortgage. You want to raise £80,000.
On a secured loan: 10 years at 8% APR. Monthly payment ~£970. Total interest paid over the term: ~£36,400.
On a bridging loan (12 months at 0.75% per month, retained): Total interest ~£8,400 plus 2% fee (£1,600) = £10,000. But you need to repay the £80,000 in full at month 12.
Bridging is much cheaper if you have a real exit (e.g., property sale, inheritance, business sale) within 12 months. Secured is much cheaper if you don't and need to spread the cost over years.
Common questions
Can I switch from bridging to a secured loan?
Yes — refinancing a bridge onto a longer-term secured loan is one of the standard exits, particularly when the original plan to sell or refinance to a standard mortgage doesn't materialise. Plan this exit at the start; don't wait until the bridge is about to mature.
Is a second charge bridging loan the same as a secured loan?
No. A second charge bridging loan is short-term (≤24 months) and ranks behind your first-charge mortgage. A secured loan is long-term (5–30 years), also second-charge, but designed for sustained monthly servicing rather than a single repayment at exit.
Which is cheaper for a £50k loan over 12 months?
On absolute interest cost, bridging at 0.75% per month would cost roughly £4,500 in interest plus £1,000 fee = £5,500 over 12 months. A secured loan at 9% APR over the same period would cost ~£4,300 in interest. Almost identical, but bridging needs a defined exit; secured doesn't.
Bridging the right fit?
We'll match your scenario against seven specialist lenders. Rates from 0.55% per month, no broker fee.