Equitable charge bridging loans when second charge consent is refused or delayed
You want to raise money against a property without touching the mortgage, but your mortgage lender has refused consent for a second charge, or is taking weeks to answer. That blocks a normal legal second charge. An equitable charge can still let you borrow against the property while the existing mortgage stays in place.
Selected products are now priced at standard second charge rates, from 0.93% a month, with no extra equitable charge loading. Up to 70% combined LTV on selected cases, subject to criteria. We compare the specialist options for you.
On this page
The short version
- An equitable charge is the specialist route when a legal second charge isn't possible because your mortgage lender has refused or delayed consent.
- You'll normally need to ask for consent first and show evidence that it was refused or is still pending.
- Selected products are priced at standard second charge rates, from 0.93% a month on qualifying loans over £100,000 at up to 65% LTV, with no extra equitable loading.
- Combined LTV is often limited to 65%, and up to 70% on selected cases.
- Mainly residential security. No physical valuation on qualifying properties, though an AVM still checks the value.
- Loans above £250,000 are considered individually. Straightforward cases can complete in days.
What is an equitable charge bridging loan?
An equitable charge bridging loan is short-term finance secured on a property through an equitable interest, usually created by a charge deed, rather than a legal charge registered at HM Land Registry. It's used when your mortgage lender has refused, or not yet given, consent for a legal second charge, so you can raise money while keeping your existing mortgage.
A normal second charge needs your mortgage lender's consent, because its charge usually puts a restriction on the title. Plenty of lenders refuse second charges as a matter of policy, and others take weeks to reply. Either way, the standard route is blocked.
An equitable charge works differently. Instead of registering a new legal charge, the lender takes a binding equitable interest in the property, protected by a notice or restriction on the title. It's a specialist route, used when consent isn't available, not a way around asking.
An equitable charge doesn't change your existing mortgage. Some mortgage conditions restrict further borrowing secured on the property, and your first lender may still have rights if those terms are breached. That's why lenders want to see that consent was properly requested, and why we review your position before anything goes ahead.
Legal second charge vs equitable charge
If your mortgage lender consents, a legal second charge is the default route, with more lenders and more flexibility. The equitable charge is for when consent isn't available.
| Legal second charge | Equitable charge | |
|---|---|---|
| First lender consent | Required and granted | Requested, then refused or pending, with evidence |
| Registration | Legal charge registered at HM Land Registry | Equitable interest, protected by a notice or restriction |
| Enforcement | Statutory power of sale | Usually needs a court order |
| Combined LTV | Typically higher, case dependent | Often 65%, up to 70% on selected cases |
| Security | Residential, semi-commercial and commercial | Mainly residential |
| Pricing | Standard second charge rates | Standard second charge rates on selected products, from 0.93% pm |
| Lender choice | Wider | Narrower, specialist lenders |
| Best for | Whenever consent is given | When consent is refused or delayed |
Read more about the standard route on our second charge bridging loans page.
Will an equitable charge fit my case?
Work through it in order. Most people raising money behind a mortgage don't need an equitable charge at all.
Ask your mortgage lender for consent
This comes first. If consent is given, a standard second charge is usually the better route. Some lenders that look strict on paper do consent case by case when asked properly.
Is consent refused, or still pending?
A written refusal, often because the lender doesn't allow second charges as policy, is the clearest case. If the request is still pending and you have a deadline, some lenders will consider proceeding on evidence that consent was requested. Others want a refusal. We'll tell you which applies.
Why was it refused?
This matters. Some lenders won't accept cases where consent was refused because of arrears or credit problems on the mortgage. Selected lenders do consider adverse credit and arrears case by case, but it isn't universal.
Does the security and profile fit?
Mainly residential property, enough equity within 65% to 70% combined LTV, a credible exit, and in some cases a first mortgage that isn't a flexible or offset product.
A refused consent, evidenced in writing, opens the widest choice of equitable charge lenders. Pending consent is narrower and depends on the lender. Neither means your first lender can never object, so we always check the position properly first.
Equitable charge rates, costs and combined LTV
Selected products are priced at standard second charge rates with no extra loading for the equitable structure, from 0.93% a month on qualifying unregulated loans over £100,000 at up to 65% LTV. Other adjustments can apply depending on loan size, LTV, credit and the property. Smaller loans are usually priced higher.
How combined LTV works
Lenders look at your existing mortgage plus the new loan, against the property's value. The formula is simple: property value × maximum combined LTV, minus your existing mortgage.
| Example | At 65% combined LTV | At 70% combined LTV (selected cases) |
|---|---|---|
| Property value | £600,000 | £600,000 |
| Maximum total borrowing | £390,000 | £420,000 |
| Less your existing mortgage | £250,000 | £250,000 |
| Maximum gross equitable charge | £140,000 | £170,000 |
That room is the most you could borrow. The cash you receive will be less. Combined LTV is usually measured on the gross loan, including fees, and if interest is retained it's deducted at the start. So the money in your account will be lower than the headline figure.
The full cost, not just the rate
| Cost | What to expect |
|---|---|
| Interest | From 0.93% pm on selected products. Retained, rolled up or paid monthly, depending on the product |
| Arrangement fee | Usually a percentage of the loan, often added to it |
| Valuation | Often nothing on qualifying properties using an AVM. A physical valuation costs extra where needed |
| Legal costs | The lender's legal fees and, in some cases, your own solicitor's. Some lenders handle simpler cases in-house |
| Other fees | Possibly title insurance, a transfer fee and an exit fee, depending on the lender |
| Broker fee | None upfront. We're paid by the lender on completion, disclosed before you proceed |
We set out every cost in writing before you commit.
Check your combined LTV
Enter the value, your mortgage and the loan you want. You'll see the combined LTV, your headroom and the estimated cash after fees.
Equitable charge criteria to check
Criteria vary by lender. These are the points that usually decide whether a case fits.
Consent evidence
Proof that second charge consent was requested and refused, or in some cases is still pending. A letter or email from your mortgage lender is ideal.
Property
Mainly residential, including buy-to-let, in England, Scotland or Wales, with a registered title and enough equity.
First mortgage
Usually a standard term mortgage. Some lenders won't sit behind flexible, offset or drawdown mortgages, because the balance can grow after the loan is in place.
Credit
Selected lenders consider adverse credit and mortgage arrears. Others don't, especially where consent was refused because of arrears. See bad credit bridging for other options.
Loan size
Loans above £250,000 are considered individually. There's no universal maximum.
Exit and affordability
A clear exit through sale, refinance or a capital event. For rental property, lenders check the rent covers the interest. For others, they check the total debt is affordable.
How it works, step by step
Straightforward cases can complete in days. There's no guaranteed deadline, though. The timing depends on your evidence, the valuation and the legal work.
Check the route
We look at your consent position first. If consent is realistically available, we'll tell you a standard second charge is better. If not, we check the refusal reason, combined LTV, loan size and your profile against the specialist lenders, usually the same day.
Gather the consent evidence
We tell you exactly what the evidence needs to show, and help you request it from your mortgage lender in a form underwriters accept. This is the step that most often delays poorly prepared cases.
Valuation
On qualifying residential property, an automated valuation checks the value with no visit. Where a physical valuation is needed, it's booked straight away alongside everything else.
Legals and completion
The charge deed is prepared, any independent legal advice requirements are met, and funds are released. Some lenders handle simpler individual cases with their in-house legal team.
What helps it move quickly
- Written consent evidence ready from the start
- A recent mortgage statement
- A clear, evidenced exit
- Prompt replies to the lender's questions
What to send us
- The property address and value
- Your mortgage lender and balance
- The loan you need and what it's for
- Where consent stands: refused, pending or not asked
Case study: consent refused, equitable charge in 14 days
Building society refusal, Bristol
A property owner needed £55,000 for a time-sensitive business opportunity. The building society that held the mortgage doesn't allow second charges and refused consent in writing, and the mortgage was fully up to date. The refusal was evidenced at the decision in principle stage, before any costs, and the case fitted the equitable criteria at 61% combined LTV. It completed on day 14, and the loan was repaid from business income in month 5.
£55,000, 61% combined LTV, day 14Equitable charge bridging FAQs
What is an equitable charge bridging loan?
Short-term finance secured on a property through an equitable interest, usually created by a charge deed, rather than a registered legal charge. It's used when your mortgage lender refuses or delays consent for a second charge, so you can borrow against the property while keeping your existing mortgage.
Can I borrow after second charge consent is refused?
Often, yes. Where consent was refused, especially as a matter of policy, an equitable charge can be the route. Some lenders won't proceed if the refusal was because of arrears or credit problems on the mortgage, while selected lenders consider those cases individually.
Must I request consent first?
Normally, yes. Lenders expect evidence that you asked your mortgage lender for consent and that it was refused or is still pending. If consent is given, a standard second charge is usually the better option.
Can funding complete while consent is pending?
Sometimes. Some lenders will consider proceeding on evidence that consent has been requested and is pending, particularly where there's a deadline. Others need a written refusal. It depends on the lender and your circumstances.
What rates and combined LTV apply?
Selected products are priced at standard second charge rates with no extra equitable loading, from 0.93% a month on qualifying unregulated loans over £100,000 at up to 65% LTV. Combined LTV is often limited to 65%, and up to 70% on selected cases. Other pricing adjustments can apply.
Can I borrow above £250,000?
Possibly. Loans above £250,000 are considered individually, depending on the lender, the property and the security structure. There's no universal maximum.
Are arrears or CCJs considered?
By selected lenders, yes, but not universally. Some won't accept cases where consent was refused because of arrears or credit issues on the first mortgage. Others consider adverse credit and arrears case by case.
Is a physical valuation needed?
Not always. On qualifying residential properties there's no physical valuation, though an automated valuation still checks the value. New builds, short leases and less standard properties may need a surveyor.
Can interest be retained?
On many products, yes. Retained interest means no monthly payments, but it's deducted from the loan at the start, so you receive less cash. Rolled-up or monthly interest may also be available.
Can the security be my home?
Equitable charges are mainly used on residential property, including your own home. A loan secured on a home you or your family live in is usually regulated. Aura Capital arranges unregulated loans, and for regulated cases we arrange an independent FCA-authorised adviser at no cost to you. See regulated bridging loans.
What happens at the end of the term?
You repay the loan through your planned exit, usually a sale, a refinance or a capital event. If that's going to be late, talk to the lender early. An extension may be possible but isn't guaranteed. If the loan isn't repaid, enforcing an equitable charge usually needs a court order.
Can I get an equitable charge behind a flexible or offset mortgage?
Often not. Some lenders won't lend behind flexible, offset or drawdown mortgages, because the first mortgage balance can increase after the loan is in place. Standard repayment and interest-only mortgages are usually fine.
How quickly can an equitable charge complete?
Straightforward cases can complete in days, especially with consent evidence ready and an automated valuation. There's no guaranteed timescale, as it depends on the evidence, valuation and legal work.
Who wrote this page
Harry Baker
Harry holds an MSc in Real Estate & Finance from the University of Reading. He arranges second charge and equitable charge bridging, comparing specialist options for borrowers whose mortgage lender has refused or delayed consent.
- Team transacted
- £500m+
- Lender panel
- 50+
How we compiled the figures
Rates, LTVs and criteria reflect specific products on our lender panel and vary between lenders. No single product offers every feature on this page. We'll confirm exactly what applies to your case.
Related bridging products
Each product page has its own criteria and rates.
Consent refused or delayed? Find out what's possible today
Send the property address, your mortgage lender and balance, the loan you need and where consent stands. We'll compare the specialist options and tell you the same day whether an equitable charge fits, before you commit to any costs. No upfront fees.
Your property may be repossessed if you do not keep up repayments on a loan secured on it. Equitable charge lending is subject to lender criteria, including evidence of the second charge consent position, and to underwriting, valuation, legal due diligence and exit assessment. Rates and criteria vary by lender and product, and are correct as at October 2026. Aura Capital is a trading name of Chammosair Limited, registered in England & Wales, company no. 15786496. Aura Capital is a broker, not a lender, and is not authorised or regulated by the Financial Conduct Authority. We do not arrange regulated loans or give financial advice. On regulated cases we arrange an independent FCA-authorised adviser.