If you’re wondering whether you can use more than one property to secure a bridging loan, the answer is yes – and it might open up more options than you think.
Using multiple properties as security lets you access higher amounts of finance, with more flexible terms.
You’ll find this approach particularly useful if you own several properties and need quick access to funds, whether for business growth, property investment, or other opportunities.
What is Cross-Charged Bridging Finance?
Cross-charged bridging finance lets you use two or more properties as security for a single short-term loan.
Instead of relying on just one property, you can spread the security across several assets in your portfolio. You might own a house in Leeds and a shop in Bristol – both could work together to secure your loan.
You can use various types of property – houses, flats, commercial buildings, or even land with planning permission.
Many borrowers assume they need to own their properties outright, but that’s not the case. You can use properties that have existing mortgages, as long as there’s enough equity available for your new borrowing.
Read more: A Guide to Cross Charge Bridging Loans
How Cross-Charging Works
The process breaks down into two main areas: property assessment and loan structure.
Property Assessment
Each property needs to be valued. Lenders check current market values and any existing loans secured against them. They look at factors like location, condition, and how easily each property could be sold if needed.
What matters most is the equity you have across all properties combined.
For example, if you have a £600,000 house with a £300,000 mortgage and a £400,000 commercial unit with £200,000 outstanding, that’s £500,000 in total equity that could provide extra support for your bridging loan.
Read more: Do you need a valuation for a bridging loan?
Loan Structure
Once the properties are valued, the lender takes a legal charge over each one.
Loans start from £150,000, with maximum amounts based on your total available equity. The legal charges can be either first or second charge, depending on whether properties have existing mortgages.
Lenders are happy to mix charges but you will have just one loan account.
Read more: Legal Charges: Your Guide to Bridging Loan Security
Let’s talk bridging loans!
Who Can Benefit?
Cross-charged bridging finance suits several situations.
Property developers use it when they spot opportunities but need quick access to funds. For instance, one developer recently used equity from two completed projects to finance their next development purchase.
Business owners find it helpful when they need working capital.
A restaurant owner used their commercial premises and residential property to fund an expansion, paying back the loan when the new location started trading.
Portfolio landlords use cross-charging to grow their property holdings without selling existing assets. Rather than selling one property to buy another, they can use their portfolio’s combined equity to bridge the gap.
Related: Understanding Bridging Finance for Buy-to-Let Properties
Advantages and Considerations
Using multiple properties often means access to larger loans and better terms, as lenders see their risk spread across several assets.
You might also find more lenders willing to help, leading to more competitive offers.
However, you need to think carefully about using multiple properties.
More properties at risk means you need a solid plan for loan repayment – your exit strategy. This could be selling one property, refinancing to a standard mortgage, or using business profits.
Related:
How a Broker Helps
Working with a broker who understands bridging finance makes a real difference.
With access to over 250 lenders, including private banks and specialist lenders, our brokers will:
- Find lenders comfortable with multiple property security
- Structure your application effectively
- Negotiate competitive terms
- Handle the complex process
- Keep everything moving smoothly
They’ll spot potential issues early and suggest solutions, saving you time and stress.
Next Steps
If you’re considering multiple property bridging finance, start by gathering information about your properties, including any mortgage details and rough values.
Think about how you’ll repay the loan – this will be one of the first questions any lender asks.
Speaking with a broker early helps you understand your options before making commitments. They can give you a clear picture of what’s possible with your property portfolio and help you decide if cross-charging suits your needs.
Some examples
Borrowing More: The Portfolio Expansion
A landlord owned three properties:
- A flat worth £500,000 with a £200,000 mortgage
- A house worth £300,000 with a £100,000 mortgage
- A house worth £400,000, mortgage-free
Using just one property would have limited their borrowing. But by cross-charging against all three properties, they could access £600,000 in bridging finance. This let them buy two more properties at auction while keeping their existing portfolio intact.
Reducing Interest Rates: The Business Owner
A shop owner needed £250,000 for stock expansion.
They owned:
- Their shop premises worth £400,000 with a £150,000 mortgage
- A residential property worth £350,000 with a £100,000 mortgage
By using both properties instead of just the shop, they secured better rates. The lender offered a reduced rate because the residential property provided additional security, saving them money each month.
Strengthening the Lending Case: The Property Developer
A developer wanted to buy a £1 million site but had a less-than-perfect credit history.
They owned:
- Two completed developments worth £600,000 each
- A small office building worth £400,000
While one property alone might not have convinced lenders, using all three properties as security made the difference. The combined equity of £1.6 million across three different property types showed the lender they had substantial assets and experience in different markets. This helped secure approval despite their credit challenges.
FAQ
There’s no fixed limit. You can use any number of properties, provided they meet the lender’s criteria and have sufficient combined equity.
Read more: Understanding Bridging Loan Criteria & Eligibility
Yes, you can use mortgaged properties if they have enough equity. The lender will take a second charge behind the existing mortgage.
Read more: Second Charge Bridging Loans
At Bridging Finance London, the minimum loan amount is £150,000 when using multiple properties as security.
With all documentation ready, funds can be released within 1-2 weeks. Some cases complete faster, depending on property types and complexity.
Related: How to Access Capital Quickly Without Using Credit Cards or Overdrafts
You can use residential, commercial, buy-to-let properties, and even land. Mixed portfolios are acceptable to many lenders.
Read more: What is a Bridging Loan Secured Against?
Your existing mortgages remain in place. However, you’ll need permission from your current lenders for the additional security charge.
If this request is refused, you may be able to use an equitable charge loan instead.
Most lenders prefer UK properties and this will give you the most choice, but some will consider properties in certain European countries.
Leasehold properties are acceptable if they have sufficient remaining lease length.
Yes, rental income can continue and may strengthen your application by showing income potential.
Yes they are possible.
You could fund 100% of a new purchase by using other assets to secure the loan against, providing extra equity.
