15 October 2025 | Written by Vicky O'Sullivan
Case Study: Second Charge Bridging Loan on a Buy to Let Property
Purpose: Fast funding for an auction purchase
Completion: Within 7 days
The Scenario
Our client, an experienced landlord, needed to raise funds quickly to secure a new investment property purchased at auction. With limited time to complete, traditional finance routes weren’t an option – the customer required a flexible and responsive solution to access funds fast.
The Challenge
The client already had an existing mortgage of £133,162 on their buy to let property, valued at £315,000. They needed £75,000 quickly to complete the auction purchase, without disturbing their current mortgage or rental income arrangements.
The Solution
Mercantile Trust arranged a second charge bridging loan secured against the buy to let property.
- Property Value: £315,000
- Existing Mortgage: £133,162
- Net Loan Amount: £75,000
- Lender Fee: £2,250
- Term: 12 months
- Structure: Rolled bridge – no monthly payments during the term
This rolled bridge structure allowed the client to focus on light refurbishment works and getting the property ready to let, without the pressure of monthly repayments.
The Outcome
The loan completed within 7 days of receiving the case – enabling the customer to meet their auction deadline and secure the property. Once the refurbishment works were completed and the property tenanted, the client planned to exit via refinance onto a longer-term Buy to Let Mortgage.
Key Highlights
- Second charge bridging loan secured against an existing BTL property
- Fast completion: within 7 days
- No monthly payments – rolled interest over 12 months
- Flexible exit route: refinance once tenanted
Summary
This case demonstrates how Mercantile Trust’s fast, flexible lending approach helps landlords and investors act quickly on time-sensitive opportunities like auction purchases. By assessing each case on its merits and using common-sense underwriting, we delivered the funding our client needed – when it mattered most.
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