Deal Highlights

• £284k second charge bridge at 65% combined LTV over a nine-month term
• Extended five-bedroom semi-detached house in Barnet
• Re-bridge of a maturing second charge originally taken out to fund refurbishment works
• New facility cut the borrower's rate from 1.25% to 1.10% per month and avoided a 3% extension fee
• Second legal charge accepted behind a high-street first charge, with the whole debt held at 65%
• Exit via buy-to-let refinance once tenanted, stressed against the valuer's rental assessment

The Challenge

Bridging loans taken out to fund refurbishment works often reach maturity before the exit is ready — and when the incumbent lender's answer is a 3% extension fee, borrowers need a re-bridge that actually improves their position rather than resetting it at a worse rate. In this case, an experienced portfolio landlord had extended and refurbished a five-bedroom house in Barnet, with the works close to completion and the existing second charge coming to term.

The deal carried the features that thin out the lender pool quickly: it required a second legal charge sitting behind a high-street bank, the refurbishment was not yet finished, and the borrower was living at the property - a combination most bridging lenders decline on regulatory or risk grounds.

The Outcome

Berkeley Credit provided a £284k gross bridge secured by second legal charge behind the existing first mortgage, holding the combined debt at 65% of the £1.2m valuation. The re-bridge reduced the borrower's cost of funds from 1.25% to 1.10% per month and avoided the extension fee entirely, with interest retained for the term so there is nothing to service while the final works complete.

The facility was written over a maximum nine-month term against a clear, staged exit: complete the remaining works, let the property, and refinance onto a buy-to-let mortgage. The exit was stressed against the valuer's rental assessment at a 65% gross LTV — a level mainstream buy-to-let lenders can comfortably reach — with a re-bridge at the same leverage as a realistic fallback should letting take longer than planned.