Second Charge Bridging Loans

Second charge bridging loans are short term loans that are secured against a property that is already being used as collateral for another loan. These loans offer a valuable tool with which to access capital for businesses as well as emergency finance for ordinary borrowers who don’t have outright ownership for a property.

Second charge bridging loans typically attract higher interest than first charge loans as they carry a higher default risk. Another factor that raises the risk profile of second charge bridging loans is, in the event of a borrower’s failure to repay the loan, lenders would only recover their money after the first charge lender has recouped theirs.

The amount you are able to borrow on a second charge bridging loan depends on the amount of equity you hold in the asset you are borrowing on. Likewise, the interest the lender will charge on the loan will depend on the amount of risk they feel they are exposing themselves to by approving you for the loan.

When Would You Take Out A Second Charge Bridging Loan?

A typical scenario where a borrower will take out a second charge bridging loan is where they don’t have enough credit to apply for a regular bank loan and the only property they have to secure a first charge loan is tied up in a mortgage. As your bridging finance lender, we will then use the equity you have in the mortgaged property as security for the bridging loan. The mortgage loan, thus, becomes the first charge loan.

Who Would Need A Second Charge Bridging Loan?

Any entity, whether an individual or a business, that cannot secure first charge collateral can successfully apply for a second charge loan. For businesses that do not outrightly own their premises and equipment, second charge loans are often the only available source of bridging finance.

Likewise, people who have still to pay off their mortgages and have to service other debts will find second charge loans as the only realistic sources of bridging finance. They may look to use the money to pay for much needed refurbishments on the same property, among other funding needs.

As your lender, Galaxy Finance cares more about your exit strategy for the loan. For that reason, we are prepared to be as flexible as it takes to provide you with the funding you need for that opportunity you want to exploit. We will work with you to devise an exit strategy that satisfies both parties.

Apply For Your Second Charge Bridging Loan Today

At Galaxy Finance we recognize the funding challenges faced by small businesses with limited assets and a section of our residential customers who, because of low credit scores, can’t access loans from banks. We have designed bridging finance solutions with friendly terms and which we are able to process quickly so you can take advantage of those time-sensitive opportunities that don’t come along oftenly.

Contact our bridging finance experts today to discuss your needs.

Two professionals looking at second charge loan paperwork

Customer Empathy

At Galaxy Finance, we invest a lot of our energies in studying and understanding our clients most pressing short term funding challenges. As an empathic business, we first listen and then ask questions that go to the very route of clients’ funding challenges so we can develop sustainable solutions that truly meets them at their points of need.

Qualified Team Members

Right through our processes, our officers make sure to respect clients’ privacy. Even where clients have to provide more personal information on the state of their finances, we are always careful to remain professional. Our team is incentivised to always put the customer first, which calls for a deeper appreciation of what it takes to deliver on our stated mission.

Distinct Approach

The Galaxy Finance team is as diverse as our clientele, with professionals drawn from different social classes and ethnicities. We realise we cannot successfully present ourselves to clients as diverse and inclusive if our own team doesn’t project the same. We are also consistently adding new products to ensure we can meet as many varied needs as we can.


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