If your current property has a mortgage, the lender will assess the equity in the property once the remaining mortgage balance has been deducted. This is known as a second or third charge bridging loan, as a first charge – the mortgage – already exists and is secured on the property. The higher the amount left on the mortgage, the less security you can provide to lenders. This issue may be reflected in higher interest rates or less freedom in the amount you can borrow.
Second or third charge bridging loan
