£750,000 Second Charge Bridging Loan to Release Equity for Investment

A UK-based property investor approached Global Bridging Finance seeking to raise capital quickly to secure a new residential investment opportunity. The client owned a high-value property in London with a relatively low outstanding mortgage but was tied into a fixed-rate deal with significant early repayment charges.

Refinancing the existing mortgage was therefore not a viable option, both in terms of cost and timing. At the same time, the new investment opportunity required immediate funding, with the vendor insisting on a tight completion schedule.

The client required a solution that would allow them to unlock equity from their existing property without disturbing the first charge mortgage. Speed, cost-efficiency, and flexibility were key considerations.

We structured a £750,000 second charge bridging loan secured against the client’s London property. The combined loan-to-value remained within acceptable limits, providing comfort to the lender while allowing the client to raise the required capital.

The facility was arranged over a 9-month term, with interest rolled up to preserve cash flow. Due to the strength of the underlying asset and the client’s clear exit strategy, being the refinance or sale of the newly acquired property, the lender was able to proceed quickly.

Funds were released within 12 working days, enabling the client to complete the onward purchase without delay. By using a second charge structure, the client avoided early repayment penalties on their existing mortgage while still accessing significant liquidity.

This case demonstrates how second charge bridging loans can provide an effective solution for investors looking to unlock equity without refinancing, particularly where speed is essential and existing finance arrangements need to remain in place.