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Can I Get a Bridging Loan as a Second or Third Charge on a Property?

Bridging loans are fairly flexible – but can you take out this type of finance as a second (or even third) charge against your property? All your 2nd charge bridging loan questions are answered in this guide.

Securing a Bridging Loan as a Subsequent Property Charge

Bridging finance is a lot more flexible than a typical mortgage, and there are numerous products on the market including a 2nd charge bridging loan.

The best option for you depends on your circumstances, finances, and what you need the bridging loan for. Here we'll run through Second or Third charges on the same property, and the key considerations you need to bear in mind before choosing a 2nd charge bridging loan.

For bespoke advice around arranging your ideal bridging loan borrowing, give the Revolution Brokers team a call on 0330 304 3040, or drop us a message to [email protected].

Can I Get a Bridging Loan as a Second Charge Product?

You can get a 2nd charge bridging loan, yes - depending on what other debts are secured against the property.

If you have a mortgage already, and then secure a 2nd charge bridging loan against it, you are taking out the new borrowing as a second charge.

Much depends on the lender, how much equity you own, and what you are borrowing against a 2nd charge bridging loan since your mortgage lender would be first in line to claim the proceeds should you fail to keep up with the repayments and end up in a repossession scenario.

  • Property Details
  • Type of loan
  • help Maximum 75% LTV
  • help Maximum 70% LTV
  • help Maximum 70% LTV
  • help Maximum 65% LTV
  • help We will lend against current market value of the asset with vacant possession

  • £7,500,000
    help You cannot exceed the maximum loan available based on the maximum LTV for the corresponding type of property selected above
  • 75%
    help You cannot exceed the maximum LTV available for the corresponding type of property selected above


  • 0
  • help Term should be entered in whole months, to a maximum of 12

  • help Deducted interest is where the forecast interest amount is deducted from the loan on day one.
  • help Serviced interest is where the interest is paid on a monthly basis. If serviced interest is chosen, evidence will be required to show your ability to pay interest when it is due.
  • help This is the standard rate for the property type chosen
  • help You can enter a custom rate below our standard rate for the calculation, but the availability of this rate is not guaranteed
Instant Results
Total security value 0
Gross loan amount 0
Gross LTV 0
Interest rate 0
Term (months) 0
Minimum term (months) 0
Assumed arrangement fee @ 2% (min £2,000) 0
Interest Retained 0
Monthly Serviced Interest 0
Admin fee 0
Indicative day 1 Net loan advance 0

How Does a First Charge Bridge Loan Work?

This loan on a 2nd charge bridging loan is simple; you need a  bridging loan to pay for a development or an investment and secure the debt against your property. Alternatively, you use that loan to repay your current mortgage.

Bridging finance is the only debt secured against the property.

Is a Second Charge Bridging Loan Harder to Secure?

Where you have an existing mortgage or form of borrowing secured against your property and then take out a bridge loan, you commit to repaying two different loans – also known as a 2nd charge bridging loan.

If you have a strong exit strategy in place and are a low-risk 2nd charge bridging loan applicant, this isn't likely to be a deal-breaker. However, the lender will need to know about the first charge debt and your equity in the property before offering a 2nd charge bridging loan.

What are the Criteria to Apply for a Bridge Loan as a Second Charge?

Some bridging finance providers do not offer second charge loans, but many will. The business strategy and stability of your exit plan will have a big difference on your eligibility for a 2nd charge bridging loan.

There aren't any fixed criteria against 2nd charge bridging loan products so each lender will decide whether they are comfortable accepting a second charge. That assessment includes looking at:

  • Your credit history.
  • How stable the exit plan is.
  • What equity is available in the property?
  • How much deposit you have available.
  • Whether you are experienced in developments, if that is why you are taking out a bridging loan.

Can I Get a Second Charge Bridge Loan If I Have Adverse Credit?

Possibly, a 2nd charge bridging loan could be available to bad credit applicants, but it's likely to be much more difficult. If you plan to remortgage the property to pay back the loan, you'll need an agreement in principle to show the 2nd charge bridging loan lender that you can pay back the debt and will be able to secure a mortgage despite your credit problems.

Second charge loans are usually charged at higher interest rates, given the additional risk to the 2nd charge bridging loan lender.

Provided you have a strong exit strategy and can demonstrate that you can afford to pay back the debt, we'll likely be able to find a bridge loan provider for you offering a 2nd charge bridging loan.

How Important is my Exit Strategy in a Second Charge Bridge Loan Application?

The exit strategy on a 2nd charge bridging loan is vitally important, and usually the core factor in whether a lender will approve your application.

Many applicants for a 2nd charge bridging loan plan to remortgage or sell the property to repay the debt. Some specialist lenders will consider less conventional repayment plans, such as using an inheritance or investment fund.

Second charges are always riskier, so your exit strategy against a 2nd charge bridging loan will need to be reliable to achieve the borrowing you need.

Is There Such a Thing as a Third Charge Bridging Loan?

There is! A third charge exists where you already have a mortgage and a loan, or two secured forms of borrowing, already secured against your property.

The application process for a 2nd charge bridging loan works the same, but the lender's level of risk is much higher, so the eligibility criteria will be stricter.

How Can I Secure a Bridge Loan as the Third Charge on my Property?

Third charges aren't standard and are more complex than a 2nd charge bridging loan. You will need the assistance of an experienced broker to source a lender who will consider your application.

Your exit strategy and rates of interest and the investment's security all need to be compelling to enable a lender to accept the risk.

Which Exit Strategies are Acceptable on a Third Charge Bridge Loan?

Exit strategies are even more vital for a third charge loan since the lender will need to be sure that you can repay them - since they will be third in line to recoup their debt should the property be repossessed behind a 2nd charge bridging loan lender.

Can I Offer Another Type of Security for a Bridge Loan as a Second or Third Charge?

Most 2nd charge bridging loan products are secured against properties. Lenders need to know what the property is worth, and that it will be possible to sell it on the market.

Factors include where the property is based and whether it is a standard construction or a more unusual home that might be harder to sell.

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