Second charge bridging loan, without touching your first mortgage
You have equity sitting in a property and a first-charge mortgage on a rate you do not want to lose. You need capital fast, for a deposit on the next deal, a refurbishment, or a bill that will not wait. Remortgaging would mean repaying that cheap first charge or paying an early repayment charge to escape it. A second charge bridging loan solves that. It sits behind your existing mortgage, releases the equity, and leaves the first charge exactly where it is.
Vortex Finance arranges second charge bridging through a panel of 100+ lenders, with indicative terms within 24 hours. We are a broker, not a lender. We shop the whole market to find the route that fits your deal, not a headline rate you cannot qualify for. There is no fee to get indicative terms.
What a second charge bridging loan is
A second charge is a loan secured against a property that already carries a mortgage. The existing mortgage is the first charge. The new loan is the second charge, registered behind it on the title.
Because it ranks behind the first charge, the second-charge lender carries more risk. If the property were sold or repossessed, the first-charge lender is paid first. That ranking is why second charges price higher than a first-charge mortgage, and why the lender looks closely at your combined borrowing across both charges. The “bridging” part means it is short-term, interest-only money built to be repaid in months. Most borrowers redeem through a sale, a refinance onto a term mortgage, or capital from another deal.
When a second charge beats a remortgage
The common reason is rate. If your first charge is on a fixed rate well below today’s market, remortgaging the whole balance to release equity means giving up that rate on your entire mortgage, not just the slice you want to draw. A second charge leaves the first charge untouched and only prices the new money.
The second reason is the early repayment charge. Many fixed-rate mortgages carry an ERC of 1% to 5% of the balance if you redeem inside the fixed period. Remortgaging early triggers it. A second charge avoids it, because the first charge stays in place. Speed is the third reason. A full remortgage can take weeks. Second charge bridging is built to move, with indicative terms in 24 hours and completion in days on a clean case.
How much you can raise
Borrowing is driven by the combined loan-to-value across both charges, not the second charge alone. Add your existing mortgage balance to the new second charge, then measure that total against the property value.
As an indication, most second charge bridging caps the combined LTV around 70% to 75%, though it varies by lender, property type and the strength of your exit. On a property worth £500,000 with a £250,000 first charge, a 75% combined cap leaves headroom for a second charge of up to roughly £125,000, before fees. Pricing tracks the bridging market, indicatively from around 0.55% to 1.10% a month, with cleaner low-LTV cases at the sharper end. Every figure here is indicative. The lender confirms the rate, the LTV and the loan size on application, once a RICS valuer has seen the property. We size the realistic number for your case first.
First-charge lender consent
A second charge needs the first-charge lender to agree to the new loan ranking behind theirs. This is usually granted through a deed of consent, and most lenders give it as a matter of course.
We manage that consent as part of the application, so it does not stall your timeline. A small number of first-charge lenders restrict second charges in their terms. We check that early, before you spend on a valuation, so there are no surprises late in the process.
Regulated and unregulated second charges
Whether a second charge is regulated depends on the property and the purpose. A second charge against a property that is your own home, or an immediate family member’s, generally falls under FCA rules. A second charge against an investment property, or raised for a business or investment purpose, is usually unregulated.
This matters for who handles the advice. On any regulated case, a qualified adviser gives the regulated advice on the call. This page is information, not advice. We confirm which category your deal sits in before anything proceeds.
How a second charge bridge is priced and paid for
On most deals we earn a procuration fee from the lender on completion. Our fee model is confirmed upfront before any application. Every fee is disclosed in writing before you commit.
There is no charge to get indicative second charge terms, a lender shortlist, or a fit assessment. You only move to a fee position once you have seen the options and told us to submit.
When a second charge bridge fits
Where raising capital behind your first mortgage makes the difference.
Release equity for a deposit on your next purchase without disturbing the mortgage you already hold.
Draw working capital to refurbish a property before refinancing onto a term mortgage.
Meet a bill that will not wait without breaking a cheap first-charge rate to do it.
Avoid giving up a fixed rate well below today’s market on your whole mortgage balance.
Sidestep an ERC of 1% to 5% by leaving the first charge in place instead of remortgaging early.
Bridge a gap between transactions, repaid from a sale or refinance once the next step lands.
Frequently asked questions
Why not just remortgage to release the equity?
Remortgaging can mean losing a cheap first-charge rate or paying an early repayment charge of 1% to 5% to escape your fixed period. A second charge raises capital while leaving the first charge intact, so you keep the rate you already have and only price the new money.
Will my first-charge lender allow a second charge?
Most do, through a deed of consent. We manage the consent process as part of the application and check your first charge for any restriction early, before you pay for a valuation, so it does not derail the timeline late on.
How much can I raise on a second charge bridging loan?
Borrowing is based on combined loan-to-value across both charges, indicatively capped around 70% to 75%. Add your existing mortgage to the new loan and measure against the property value. The lender confirms the exact figure on application after the valuation.
Is a second charge bridging loan regulated?
It depends on the security and the purpose. A loan against your own home is generally regulated, and a qualified adviser handles the advice. An investment or business-purpose second charge is usually unregulated.
What can I use a second charge bridging loan for?
Common uses are a deposit on the next purchase, funding a refurbishment, covering a tax bill, or releasing working capital between deals. Lenders will want a clear exit, usually a sale or a refinance onto a term mortgage.
How fast can a second charge bridge complete?
We aim to send indicative second charge terms within 24 hours of a complete enquiry, and a clean case can complete in days. The main variables are the RICS valuation and the first-charge lender’s consent, both of which we manage from the start so they do not stall your timeline.
All rates, fees, loan-to-values and timescales above are indicative. The lender confirms the final terms on application, once it has seen the property and your file.
Get indicative second charge terms in 24 hours
Tell us the property, your existing mortgage balance, the capital you need, and your exit plan. We compare 100+ lenders and come back with indicative second charge terms inside 24 hours. No fee to find out, no impact on your credit file, and no commitment until you tell us to submit. Speak to a broker to get started.
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