Unlock Hidden Cash in Your Property: How Londoners Are Raising Quick Funds with Second Charge Bridging Loans
If you’re a London-based homeowner, property developer, or investor looking to access quick capital without selling your property or remortgaging, a second charge bridging loan could be your smartest financial move yet.
At Sunrise Commercial Finance, we specialise in helping individuals and businesses across London and the UK unlock the value tied up in their existing property assets. Whether you’re dealing with an unexpected bill, aiming to fund a renovation project, or need to secure a new investment quickly, second charge bridging finance offers a fast and flexible solution.
This guide will walk you through everything you need to know about second charge bridging loans, how they work, who they’re for, and how to apply.
What Is a Second Charge Bridging Loan?
A second charge bridging loan is a short-term secured loan that allows you to borrow money against the available equity in a property that already has a mortgage on it. This second loan is registered behind your first mortgage, which means your existing mortgage stays in place, and you won’t need to remortgage or lose your low interest rate.
The “bridging” aspect means it’s intended as a temporary solution—usually lasting up to 24 months—while you arrange a longer-term solution such as a property sale, remortgage, or other financing.
Second charge bridging loans are ideal for property owners who need access to fast cash, but don’t want to disrupt their current mortgage arrangements.
How Do Second Charge Bridging Loans Work?
When you apply for a second charge bridging loan, the lender will assess the value of your property and determine how much equity is available after your first mortgage. They’ll then lend you a percentage of that equity—typically up to 65% Loan to Value (LTV), minus the outstanding mortgage balance.
Key criteria include:
- Loan Amount: From £26,000 to £5,000,000
- Loan Term: Up to 24 months
- Loan to Value (LTV): Up to 65% of your property’s market value
- Security: Residential, commercial, or mixed-use properties
- Locations Covered: Anywhere in the UK, including Northern Ireland
- Decision Time: Same-day approval in most cases
- Completion: Between 3 and 14 business days
- Exit Strategy: Sale of the property or refinancing through a long-term loan
This type of loan is designed for speed and flexibility, and can be secured even if you have other financial commitments or an unusual income situation.
What Can You Use a Second Charge Bridging Loan For?
Second charge bridging finance is highly versatile and can be used for a wide range of personal, property or business needs. Common uses include:
- Property purchases or investments
- Refurbishment, renovation, or remodelling projects
- Business cash flow or expansion
- Paying HMRC tax liabilities
- Debt consolidation
- Settling existing loans or legal charges
- Buying additional properties or land
- Auction purchases where time is critical
If you have equity in a property and a clear plan for repayment, this kind of loan gives you fast, no-nonsense access to capital.
Who Can Benefit From a Second Charge Bridging Loan?
These loans are ideal for:
- First-time property developers who have equity in one property and want to use it to fund their first flip or renovation
- Landlords and buy-to-let investors looking to expand their portfolios quickly
- Self-employed individuals or business owners who may find traditional bank lending too slow or restrictive
- Homeowners who need quick funds for personal or financial reasons, such as divorce settlements, tax bills or family emergencies
- Companies seeking liquidity while waiting for sales or long-term refinancing
Whether you’re based in London or anywhere else in the UK, second charge bridging loans can offer a valuable cash injection when time and flexibility matter most.
Pros of Using Second Charge Bridging Loans
1. Fast Access to Funds
One of the biggest advantages is speed. With same-day decisions and funds typically released within 3 to 14 working days, this is one of the fastest ways to raise significant capital.
2. Keep Your Existing Mortgage
You don’t have to remortgage or lose the benefits of a great fixed-rate mortgage. The second charge sits behind your current mortgage, keeping your original arrangement intact.
3. No Monthly Payments (in some cases)
Depending on the loan structure, some lenders allow interest to be “rolled up” and paid at the end of the term, easing your monthly outgoings.
4. Flexible Use of Funds
There are few restrictions on what the money can be used for, making it suitable for both personal and business needs.
5. Suitable for Many Property Types
You can secure the loan against residential, commercial, or mixed-use property, giving you broader options.
Things to Consider Before Applying
1. Higher Interest Rates
Bridging loans usually carry higher interest rates than traditional long-term loans due to the short-term nature and speed of funding.
2. Repayment Must Be Planned
You’ll need a solid exit strategy, such as selling the property or refinancing before the end of the term. If you don’t, you could face additional fees or complications.
3. Additional Fees Apply
Arrangement fees, valuation fees, legal costs and broker fees can add to the total cost. A trusted broker like Sunrise Commercial Finance will ensure all costs are clear from the outset.
4. Risk to Property
Because the loan is secured against your property, failure to repay may result in legal action or repossession. As always, proper financial planning is essential.
How to Apply for a Second Charge Bridging Loan
At Sunrise Commercial Finance, we offer a fast and straightforward process designed to make borrowing stress-free:
Step 1: Free Consultation
Speak with one of our experienced brokers who will assess your needs, property value, and borrowing potential.
Step 2: Same-Day Decision
In most cases, we can provide a decision on the same day, giving you confidence to move forward quickly.
Step 3: Valuation & Legal Process
We’ll arrange a valuation and manage all legal aspects with speed and clarity.
Step 4: Receive Your Funds
Once everything is approved, funds are transferred—often within 3 to 14 working days.
Step 5: Repay at the End of Term
You repay the full amount either through a sale, refinancing or another pre-agreed method.
Why Choose Sunrise Commercial Finance?
We are a London-based, independent commercial finance brokerage specialising in bridging loans and development finance. With over a decade of experience, we’ve helped hundreds of clients—from first-time buyers to large-scale developers—secure funding fast.
We offer tailored, no-obligation advice, and work with a trusted network of lenders across the UK to secure the most competitive terms available.
For more information contact us for a fees free chat.
To keep informed of our latest property articles about all things property follow us on facebook
📞 Call us at 07939 091418
📧 Email: john@sunrisecommercial.co.uk
🌐 Visit: https://www.sunrisecommercial.co.uk/
#SecondChargeLoan #BridgingFinanceUK #PropertyInvestorsLondon #QuickPropertyLoan #DeveloperFinance #PropertyDevelopmentFinance #CashFromEquity #SunriseCommercialFinance #HMRCLoanHelp #LondonPropertyInvestment #CommercialBridgingLoan