What is the difference between a first and second charge?

A first charge ranks ahead of everything and is repaid first. A second charge sits behind it and is only repaid after the first-charge lender has been paid in full.

Why does charge order matter?

It reflects risk. A first-charge lender is safer, at the front of the queue on a sale; a second-charge lender takes more risk, which shows in their terms.

Can I have both on one property?

Yes. A property can carry a first charge and a second charge at the same time — for example, an existing mortgage as the first and a further loan as the second.

Where is a charge recorded?

At the Land Registry, against the property's title. This is what makes the lender's security legally enforceable.

Is charged lending regulated?

Lending on business and investment property is typically unregulated. Housn Capital is not FCA regulated and does not lend or advise — we introduce you to a specialist commercial finance broker.

Guide · Bridging

What is a first charge?

Behind most property lending sits a charge. Here is what a first charge is, how it differs from a second, and why the order matters so much.

Updated July 2026 · 4 min read · By Housn Capital

What a charge is

When you borrow against a property, the lender registers a over it at the Land Registry. A charge is simply the lender's legal security — the right to recover what they are owed from the property, including forcing a sale if the loan is not repaid. Almost all property lending, from a bridge to a commercial mortgage, is secured by a charge.

First charge vs second charge

First charge

The claim that ranks ahead of all others. If the property is sold, the lender is repaid first, before anyone else.

Second charge

A claim that sits behind the first. A lender is only repaid after the first-charge lender has been paid in full.

Most bridging is secured by a first charge over the property being borrowed against. A second charge comes into play when a property already has a first-charge loan on it and you want to raise more against the remaining value.

Why the order matters

The ranking is really about risk. A first-charge lender is at the front of the queue if the property has to be sold, so their position is safer. A second-charge lender is further back and takes more risk, which is reflected in the terms they offer. This is why the charge position is one of the first things any property lender establishes.

Get the security right

Whether your deal calls for a first or a second charge affects which lenders will help. Housn Capital introduces you to a specialist broker who can structure the security correctly and match you to the right lender. Tell us about your deal to get matched.

Frequently asked questions

A lender's legal claim over a property that ranks ahead of all others. If the property is sold, the first-charge lender is repaid first. Most bridging is secured by a first charge.

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Housn Capital Limited. Not FCA regulated. B2B non-regulated lending only. Company No. 16418877. General information, not financial advice.