Equitable Charge Bridging Loans
Second charge consent declined? An equitable charge lets you raise capital anyway — and through Aura Capital it now costs no more than a standard second charge. Our equitable charge range is priced at standard second charge rates with no rate loading — from 0.93% per month, up to 65% LTV, loans to £250,000 (higher considered by referral), across both regulated and unregulated products. No physical valuation on qualifying cases. Same-day DIP.
Equitable charge lending has historically carried a heavy specialist premium. Through Aura Capital, that premium is gone: our equitable charge range is priced at standard second charge rates with no loading, across both regulated and unregulated products, and is available on all residential assets — including, for the first time, homeowners raising capital against their own home. If your mortgage lender has declined second charge consent, this is one of the most competitive routes to capital on the market — and the ideal basis for a same-day quote.
What is an Equitable Charge Bridging Loan?
An equitable charge bridging loan is short-term finance secured against a residential property using an equitable rather than a legal charge — a binding interest created through property law principles rather than a formally registered legal charge. It solves one specific problem: your first charge mortgage lender has declined consent for a second legal charge. Where that consent has been requested and declined — and the decline wasn't because of arrears or credit issues on your first charge — an equitable charge can still be put in place, giving you access to the capital you need at the same rates as a standard second charge.
How an Equitable Charge Works
A legal second charge requires formal registration at HM Land Registry — and that registration requires the consent of the first charge lender, because their existing charge places a restriction on the title. An equitable charge takes a different legal route: rather than registering a new legal charge, it creates a binding equitable interest in the property, typically by way of a formal charge deed. That interest doesn't need the first charge lender's permission to exist — which is exactly why it works when a second charge consent request has been declined.
The process is responsible and evidence-led: consent for a legal second charge must have been requested from your first charge lender first, and evidence of the decline must be provided. The equitable charge is the formal fallback for genuine decline cases — for example where a first charge lender refuses second charges as blanket policy — not a way to bypass a lender who was never asked.
Historically, equitable charge lending carried a heavy rate premium — borrowers declined consent routinely paid double-digit annual rates simply because of the security structure. Through Aura Capital, that premium is gone. Our equitable charge range prices at exactly the same rates as a standard second charge, with no loading, on both regulated and unregulated products. If your case fits the criteria, being declined consent no longer means paying more. See our main second charge bridging loans guide for the standard route and full pricing context.
Do You Qualify for an Equitable Charge? A Quick Decision Guide
Most borrowers raising capital against a mortgaged property don't need an equitable charge — a standard legal second charge is the default route wherever the first lender consents. The equitable charge route exists for a specific scenario, and qualifying for it follows a clear sequence.
Don't assume consent will be declined without asking. Many lenders that look restrictive on paper still grant consent case-by-case when approached properly through a broker — and where consent is granted, the standard second charge route gives you a wider market and higher leverage. We check the realistic consent position on every enquiry, and where a decline is likely we make sure the request and the decline are evidenced in the form the equitable charge route requires. Either way, you end up on the right product without wasted weeks.
Equitable Charge vs Legal Second Charge
The cost gap between the two routes has now closed entirely — the differences that remain are about consent, limits and security type, not price.
Legal Second Charge
- Registered formally at HM Land Registry
- Requires first charge lender consent
- Lender has statutory power of sale on default
- Residential, semi-commercial and commercial security
- Up to 70% LTV on qualifying cases
- On-sale second charge rates
Equitable Charge
- Binding equitable interest — no consent needed to create it
- Requires evidence that consent was requested and declined
- Enforcement typically requires a court order
- Residential security only
- Up to 65% LTV, max £250k (higher by referral)
- Same second charge rates — no loading
| Factor | Legal Second Charge | Equitable Charge |
|---|---|---|
| First lender consent | Required — must be granted | Must be requested and declined, with evidence |
| Land Registry registration | Formal legal charge | Equitable interest — notice/restriction route |
| Lender enforcement rights | Statutory power of sale | Typically requires court application |
| Maximum LTV | Up to 70% | Up to 65% (higher by referral) |
| Maximum loan | Up to £1m | £250k (higher by referral) |
| Rate | From 0.93% pm | From 0.93% pm — identical, no loading |
| Security accepted | Residential & commercial | Residential only |
| Regulated availability | Yes | Yes |
| Behind flexible mortgages | Case by case | Not accepted |
Equitable Charge Rates UK 2026
Our equitable charge range is priced at standard second charge rates with no loading — the equitable structure itself no longer costs you anything extra. Pricing is driven by the same factors as any second charge: loan size, LTV and credit profile.
| Scenario | Indicative Rate | Max LTV | Notes |
|---|---|---|---|
| Unregulated — loans over £100k | From 0.93% pm | 65% | Variable rate; fixed rate options from 1.01% pm. |
| Unregulated — loans up to £100k | From 1.17% pm | 65% | Variable rate; fixed rate options from 1.25% pm. |
| Regulated equitable charge | 2nd charge aligned | 65% | Priced in line with regulated second charge products. Ask for a same-day quote. |
| Above 65% LTV or £250k | By referral | Referral | Higher loans and LTVs considered case-by-case. |
Until recently, a borrower declined second charge consent faced double-digit annual rates on the equitable route — often making it uneconomic. Through Aura Capital, that same borrower now pays exactly what they would have paid on a standard second charge. In practical terms: a consent decline no longer carries a price penalty. Light adverse credit is priced the same way as on standard second charges — small rate loadings rather than a specialist premium. That's why this product is such a strong basis for a quote: send us your figures and we'll price it the same day.
For all our available rates and criteria, request our latest product guide or call us on 01451 514 563 for a same-day quote.
Equitable Charge Criteria 2026 — Things to Consider
Our equitable charge range has a clear criteria set. These are the points that decide whether your case qualifies — check them before you apply, or send us the details and we'll check them for you the same day.
| Criteria | Requirement |
|---|---|
| Maximum loan | £250,000 up to 65% LTV — higher considered by referral |
| Consent evidence | Consent for a second charge must have been requested — evidence of the declined consent must be provided |
| Reason for decline | No cases accepted where consent was refused due to arrears or credit issues on the first charge |
| Credit profile | Prime plus and specialist customer profiles only |
| First charge type | We do not lend behind flexible mortgages (offset, current-account and flexible-drawdown products) |
| Security | Residential securities only — available on all residential assets, including buy-to-let |
| Product range | Available across both regulated and unregulated product sets |
The Property
- Residential property only, including BTL
- England, Scotland and Wales
- Registered title at HM Land Registry
- First charge must be a term mortgage, not a bridge
- Sufficient equity within 65% LTV
Who Can Apply
- Individuals, sole traders, LLPs, partnerships and limited companies
- Employed and self-employed
- Expats and non-UK nationals accepted with no rate loading
- Prime plus and specialist credit profiles
- Clean conduct on the first charge is essential
Exit Requirements
- Clear, credible exit — sale, refinance or capital event
- Rental properties: interest cover ratio above 120%
- Other cases: total secured debt within 50% of net income
- Evidenced exits improve pricing and speed
If your first charge lender declined consent because your mortgage is in arrears or has credit issues, the equitable charge route is not available — and honestly, no responsible broker should place it. The product is built for borrowers with clean first charge conduct whose lender simply won't permit second charges as policy. If arrears are the issue, talk to us anyway: a different structure, such as a bad credit bridging loan with alternative security or a full refinance, may be the right answer instead.
Valuation & Legal: What Your Case Will Need
Two of the biggest costs and delays on any secured loan are the valuation and the legal work. On equitable charge cases, both can often be dramatically reduced — here's exactly what to expect.
No Physical Valuation on Qualifying Cases
Because equitable charges are residential-only, many cases qualify for an automated valuation (AVM) instead of a physical inspection — meaning no valuer visit, no valuation delay, and no valuation fee. For second charge-type transactions, AVMs are accepted on standard residential property types up to £150,000 at up to 70% LTV, and up to £250,000 at up to 60% LTV, subject to an adequate automated confidence level. New-build properties and leases with under 85 years remaining need a physical valuation.
Where a physical valuation is needed, the lower of purchase price or open market valuation is used, and reports remain valid for 120 days.
In-House Legals — Often No Solicitor Required
For non-complex capital raises by individuals up to £500,000 on properties in England or Wales, the lender's internal legal team can handle the transaction — in many cases with no solicitor required on your side at all. This is one of the biggest speed advantages on the product: no waiting for a client solicitor to be instructed, no duplicated legal fees. Limited company borrowers, and individuals in Scotland, can use their own solicitor acting for both parties on residential cases.
Independent legal advice is required in specific circumstances — for example where a third party is providing a guarantee or charge, where a power of attorney is used, or where an applicant may be vulnerable. We'll flag this on day one so it never delays completion.
Lender legal costs are typically 0.3% of the net loan (minimum £750) where legal representation is needed, and title insurance starts from £100 on loans up to £200,000. Legal costs can usually be added to the advance rather than paid upfront. A telegraphic transfer fee of £30 applies on completion. We set out every cost in writing before you commit to anything — no upfront broker fees.
How to Apply for an Equitable Charge Bridge
As a specialist packager for this product, we run the whole process — consent evidence, packaging, valuation route and legals — so your case lands with the underwriter right the first time.
Confirm the Route & Same-Day DIP
We check the consent position with your first charge lender: if consent is realistically available, the standard second charge route is better and we'll say so. If consent has been declined — or the lender declines second charges as policy — we confirm the decline reason is policy-based (not arrears or credit-related), check LTV, loan size and credit profile, and issue a same-day decision in principle.
Evidence the Declined Consent
Written evidence of the declined consent must accompany the application. We tell you exactly what the evidence needs to say, and where needed we help you request it from the first charge lender in a form the underwriter will accept — this is the step that most commonly delays badly-packaged cases, and the one we control tightly.
Valuation — Often Automated
On qualifying residential cases the valuation is automated: no valuer visit, no fee, no delay. Where a physical valuation is required, we instruct it immediately alongside the packaging so nothing runs in sequence that could run in parallel.
Legals & Completion
On non-complex individual cases up to £500k in England and Wales, the in-house legal route means no solicitor is required on your side. The equitable charge deed is prepared, any independent legal advice requirements are satisfied, and funds are released — well-packaged cases complete in days, not months.
Case Study: Equitable Charge Bridge, Bristol
Equitable Charge Bridge — Consent Declined by Building Society, Bristol
Completed: Day 14Situation: Property owner needed £55,000 for a time-sensitive business opportunity. Their first charge lender — a building society with a blanket policy against second charges on their residential mortgages — declined consent outright, with the decline confirmed in writing. The first charge was fully up to date with clean conduct. Two other brokers had told the client the case was impossible before it reached Aura Capital.
Approach: The consent decline was evidenced in writing at DIP stage — before any costs were incurred. With the decline confirmed as policy-based rather than credit-related, the case fitted equitable charge criteria at 61% LTV, comfortably within the £250k maximum.
Outcome: Business opportunity funded; the bridge was redeemed at month 5 from business income. At the time, the client paid a rate premium for the equitable structure — under our current pricing, an identical case today would complete at standard second charge rates with no loading at all.
This case is also referenced on our second charge bridging loans page as an example of the consent-declined scenario.
Equitable Charge Bridging FAQs
An equitable charge bridging loan is short-term finance secured against residential property using a binding equitable interest rather than a formally registered legal charge. It exists for one specific situation: your first charge mortgage lender has declined consent for a standard second legal charge. Through Aura Capital, equitable charges are priced at the same rates as standard second charges, with no rate loading, across both regulated and unregulated products.
Yes. An equitable charge is only available where consent for a second legal charge has been requested and declined, and evidence of the decline is provided — typically a letter or email from your first charge lender. The charge itself doesn't legally require the first lender's permission to exist, but the product requires proof that the standard route was genuinely attempted first. We help clients obtain the decline evidence in the right form as part of packaging the case.
Cases where consent was refused due to arrears or credit issues on the first charge cannot be accepted on the equitable charge route. The product is designed for borrowers with clean first charge conduct whose lender declines second charges as a matter of policy. If arrears are the underlying issue, other structures may still work — a bridging loan against alternative security, or a full refinance — so it's still worth a conversation.
Equitable charges through Aura Capital are priced at standard second charge rates with no loading — from 0.93% per month on unregulated loans over £100,000 at up to 65% LTV, and from 1.17% per month on smaller loans. Regulated equitable charges are priced in line with regulated second charge products. The heavy specialist premium that historically applied to equitable lending no longer exists on our range.
The maximum loan is £250,000 at up to 65% LTV, with higher loans and LTVs considered by referral on a case-by-case basis. LTV is calculated on the combined total of your existing mortgage plus the new loan, against the property value, and is measured on the gross loan including fees.
Often not a physical one. Because equitable charges are secured on residential property only, many cases qualify for an automated valuation (AVM) — no valuer visit, no valuation fee and no delay — on standard residential property types up to £150,000 at up to 70% LTV, or up to £250,000 at up to 60% LTV, subject to the automated confidence level. New builds and short leases (under 85 years) still need a physical valuation.
Yes. Regulated equitable charges are now available through Aura Capital, priced in line with regulated second charge products. That means homeowners raising capital against their own residence — not just landlords and investors — can use the equitable charge route where their mortgage lender has declined second charge consent.
Flexible mortgages — offset, current-account and flexible-drawdown products — allow the borrower to re-draw money against the first charge at any time, which means the first charge balance can grow after the equitable charge is put in place, eroding the equity securing the loan. For that reason, equitable charges are not available behind flexible mortgages. Standard repayment and interest-only term mortgages are fine; we also can't sit behind a first charge bridging loan.
The product is available to prime plus and specialist credit profiles. Light adverse — a small number of historic CCJs, defaults or blips — can fit the specialist profile, priced with modest rate loadings rather than a punitive premium. What can't be accepted is any case where the first charge consent was declined because of arrears or credit issues on that mortgage. Heavier adverse profiles may be better served by our bad credit bridging options against alternative security.
Yes — individuals, sole traders, partnerships, LLPs and limited companies can all apply, and the security can be any residential asset including buy-to-let property. For rental properties, affordability is assessed on an interest cover ratio of at least 120% (90% of projected rent can be used); otherwise total secured debt payments should sit within 50% of net income.
Well-packaged cases complete in days rather than weeks. Three things make this product unusually fast: the consent question is already answered (the decline evidence is part of the application), qualifying cases use an automated valuation with no valuer visit, and non-complex individual cases in England and Wales can use the in-house legal route with no solicitor required on your side. We issue a decision in principle the same day.
Consent Declined? Get a Same-Day Equitable Charge Decision
Send us the property address, existing mortgage balance and lender, the loan you need, and the consent position. We'll confirm whether your case fits the equitable charge criteria — at standard second charge pricing — the same day, before any costs are committed.
Risk warning: your home or property may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it. Equitable charge lending is subject to strict eligibility criteria including evidence of declined second charge consent. All applications subject to underwriting, legal due diligence and exit assessment. Rates correct as at July 2026 and subject to change. Aura Capital is an independent brokerage and specialist packager — we are not a lender.