Second Charge Bridging Loan to Release Business Capital

Client Type: UK Entrepreneur with Multiple Property Assets
Property Value: £2.8M (Residential Property)
Loan Amount: £750,000
Charge Position: Second Charge
Purpose: Business Expansion and Short-Term Cashflow

The Scenario

Global Bridging Finance was approached by a successful entrepreneur who required fast access to capital for a new business venture. The client owned several high-value assets, including a main residence with an existing first charge mortgage of £1.4 million. Rather than refinance the entire property or disturb the existing loan, the client sought a second-charge bridging loan to raise the required £750,000.

Traditional lenders were unable to assist due to the short timeframe and the complexity of multiple existing securities. The client needed funds within three weeks to finalise a commercial acquisition opportunity.

The Solution

Global Bridging Finance arranged a second charge bridging facility secured against the client’s primary residence, allowing them to raise the required capital without affecting their main mortgage. The lender was comfortable with the client’s strong asset base and clear exit strategy, repayment through proceeds from the business transaction, and a pending property sale.

Funds were released in just 14 days, enabling the client to complete the business acquisition on schedule and maintain liquidity across their portfolio.

The Result

The bridging facility provided flexible, short-term capital without the need for full refinancing. The client successfully completed their acquisition and later refinanced to release the second charge once the business generated stable income.

This case highlights how second (and even third) charge bridging loans can provide an efficient solution for borrowers needing to unlock equity rapidly while retaining their existing lending structures — a valuable tool for property owners and entrepreneurs alike.