Loan structure
Second Charge
A second charge means another lender already has a first charge on the property; this loan ranks behind it in the queue if the property is sold or repossessed.
Second-charge bridging is used when you want to raise capital against your home or investment property without redeeming the existing first-charge mortgage — typically because the existing mortgage has favourable terms or carries early repayment charges.
Combined LTV (CLTV) matters more than the second-charge LTV alone. Most lenders cap CLTV at 70-75% — so on a £500,000 property with a £300,000 first charge (60% CLTV before the second), you could potentially raise £75,000-£100,000 on a second charge to reach 75% CLTV.
Second-charge rates are higher than first-charge equivalents because the lender takes more risk. The first-charge lender also typically needs to consent to the second charge being registered — most do as a matter of course, but it can add a few days to the process.