Last Updated on February 12, 2023 by admin

Do you have any idea about the first and second-charge bridging loans? When you will be applying for a bridging loan you need to select the first and the second charge bridging loan. But first, you need to know all of their perspectives which is our today’s topic of discussion.

In today’s discussion, all of you people will be able to know all about the first and second-charge bridging loans.

Let’s do it!

Before discussing both of these types of bridging loans, you need to know what is bridging loan is. So have a look at bridging loans.

What is a Bridging loan?

A bridging loan is a quick and short-term loan that people seek for property dealing and investments. If you want to buy a new property or home and facing a financial shortage and feeling helpless. A bridging loan will always be there for you to provide financial aid.

It will create a financial bridge to achieve your goal. You can avail of their services to make your dreams come true. Most of the time whenever we find our dream house but couldn’t able to buy it because of financial problems, our old home is not getting the sale.

After getting done with the bridging loan now let’s move towards the first bridging loan.

What is First  Charge Bridging Loan?

If your property is secured against a loan for the first time then it will be your first charge bridging loan. It will be very easy for you to achieve a first charge bridging loan, your lenedr will be agreed on your asset security which will be a plus point for you. But it could be risky for you too, because if your lender will find any default on your payment then you will surely be accountable for that.

He will surely be going to impose a second charge repayment proceeding on your asset and will recover all of his money. Your lender will be in charge of setting everything about your first charge loan. He will decide all of its proceedings but in a few of them, you will be the active participant too.

What is Second Charge Bridging Loan?

You will go for a second charge bridging loan if your property has already under any loan or mortgage. If your property is already secured against a loan you will secure it to see a second-charge loan.

But the risks could be very high for you in a second-charge loan, if you default on your first lender’s repayments then the second lender will be in second place to seek his repayments from you.

So if you people don’t want to get stuck in this kind of worse situation then you need to avoid the second charge bridging loan by pushing your limits. But if you are not getting any other source to help you then you can go for it.

Can you apply for a second-charge bridging loan?  

Yes, any of you can apply for a bridging loan, it’s not as tough as you think. It’s just like the first charge bridging loan, you just need to repeat the same procedure.

But things will not be as easy as you think, you need to show any equity the required equity of your property if you want to get it done. If your equity will be compatible according to the required limit of your respective lender then it will be easy to approach your desirable loan.

Almost all lenders will demand 65% equity of your secured property for a second charge bridging loan. If your secured property’s equity will be less than this, you will not be able to secure a loan on that. Then you need to show any other valuable asset to approach a bridging loan.      

Why second charge bridging loan is risky?

Because if you are in default on paying the loan back to the first lender then things will be worse for you. Then you will be accountable to both of the lenders.

And you will be unable to pay back both of the lenders. That’s why all of you people need to keep the second charge bridging loan UK as the last option and try your best to get it done without using the second charge bridging loan.

Difference between the first charge & second charge bridging loan?

There is not much difference between the first charge and the second charge for bridging loans because the procedure will be the same from start to bottom.

You will apply for the second charge bridging loan on the same property and will be responsible to pay both of the loans with their interests. That’s the central reason that people used to call the second charge loan the riskiest finance.  

Because if you will not be able to pay the first lender then you will be stuck in a worse situation in which you will be responsible for payback both of the lenders.


There is not much difference between the first charge and the second charge bridging loan, you will apply for the second charge loan on the property which is already under the first charge loan.

If the equity of your property will be at least 65% then you will be eligible for a second charge bridging loan. Both of the loans will be much beneficial for you if you already have a secured repayment plan.

Apart from this if you’re interested to know about Personal Loan then please visit our Finance category.