Second Charge Bridging Loans
Raise capital against a property that already has a mortgage — without disturbing your existing first charge. Second charge bridging finance is used by landlords, investors, and business owners who need fast, short-term capital but want to keep a favourable existing rate in place. As an independent whole-of-market broker, we access specialist second charge bridging lenders — many of whom only lend through intermediaries. Rates from 0.83% per month, up to 70% CLTV. No physical valuation on qualifying cases. First charge lender consent refused? Equitable charge solutions available — at the same rate.
What is a Second Charge Bridging Loan?
A second charge bridging loan is short-term finance secured against a property that already has a mortgage or first legal charge registered against it. The existing lender keeps their first position — they are repaid first if the property is ever sold or enforced against. The bridging lender takes a second charge behind them, which means they carry more risk and price accordingly.
The key reason borrowers use second charge bridging is to raise capital without touching the existing mortgage — particularly where that mortgage carries a favourable rate, has early repayment charges (ERCs), or would be expensive and slow to replace. CLTV (combined loan-to-value) is the critical number: the total of the existing mortgage balance plus the new second charge loan, divided by the property value. Most second charge bridging is available up to 70% CLTV on qualifying cases. Need to avoid a physical valuation entirely? Our second charge no valuation bridging route uses automated valuation — same day, no fee.
How Second Charge Bridging Loans Work
A second charge bridging loan sits behind your existing mortgage in the priority order registered at HM Land Registry. Your first lender's charge remains registered and they retain priority — they are repaid first from any sale proceeds or enforcement action. The second charge bridging lender is repaid from whatever equity remains after the first charge is fully satisfied.
This structure allows you to access equity in a property you already own — without triggering early repayment charges on the existing mortgage, without waiting for a full remortgage to complete, and without disturbing the terms of a mortgage you may want to keep. The bridge is a separate, short-term facility layered on top. When the exit completes — through sale, refinance, or another agreed capital event — both the second charge bridge and the existing mortgage are repaid (or the bridge alone if you're refinancing only the bridge).
First Charge Lender
- Registered first at Land Registry
- Repaid first from any sale or enforcement
- Sets the restriction on the title — their consent is needed for any second charge
- Your existing mortgage lender holds this position
Second Charge Lender (Bridge)
- Registered second at Land Registry — behind the first charge
- Repaid from remaining equity after first charge is settled
- Takes more risk — reflected in higher rates than first charge bridging
- Requires first charge lender consent in most cases
Second charge lenders accept subordinate security — they only recover their money if there is enough equity left after the first charge lender is fully repaid. This additional risk is priced into the rate. Second charge bridging typically runs 0.10%–0.30% pm higher than equivalent first charge cases on the same property. The rate also reflects the additional legal complexity: consent from the first charge lender, deeds of priority, and a more involved title review all add to the lender's cost base.
Understanding CLTV: The Key Number in Second Charge Bridging
CLTV — Combined Loan-to-Value — is the metric all second charge lenders use. Unlike a first charge LTV which simply divides the loan by the property value, CLTV combines the existing mortgage balance with the new second charge to give the total debt picture against the asset. This is the number that determines lender appetite, maximum loan size, and rate.
CLTV Calculation
CLTV = (Existing Mortgage Balance + New Second Charge Loan) ÷ Property Value × 100
Example: Property value £400,000. Existing mortgage balance £200,000. New second charge loan required: £60,000.
CLTV = (£200,000 + £60,000) ÷ £400,000 × 100 = 65% CLTV — within typical lending appetite. Available equity after this transaction: £140,000.
| CLTV Band | Lender Appetite | Typical Rate Impact | Notes |
|---|---|---|---|
| Under 60% | Strong — widest lender choice | Best available pricing | More lenders willing to lend; best terms available |
| 60%–65% | Good — mainstream appetite | Competitive | Most transactable second charge cases sit in this band |
| 65%–70% | Acceptable on strong cases | Modest premium | Property type, exit strength, and borrower profile all matter more at this level |
| Above 70% | Limited — specialist lenders only | Meaningful premium | Additional security, very strong exit, or exceptional case strength required |
Before approaching any second charge bridging lender, confirm your current outstanding mortgage balance and get a realistic current property valuation — not the price you paid. If your CLTV exceeds 70%, a second charge bridge may still be possible with additional security or an exceptionally strong exit strategy, but the lender pool narrows significantly. We calculate CLTV and available equity on every enquiry before submitting to any lender.
First Charge Lender Consent: The Defining Practical Issue
Consent from the existing first charge lender is the single most common cause of delay — and occasionally failure — on second charge bridging transactions. To register a second legal charge at HM Land Registry, the first charge lender's consent is required because their existing charge acts as a restriction on the property title. Without that consent, a second legal charge cannot be registered.
This is not a formality. Different lenders have very different consent policies, timelines, and in some cases blanket refusals. Knowing the likely consent position before instructing solicitors or ordering a valuation is essential — otherwise time and money can be wasted on a case that the consent position will block.
Straightforward Cases
Many high street banks and specialist buy-to-let lenders have a standard consent process and respond within a few working days to a week. Investment property cases with a clear second charge purpose tend to be the smoothest. Consent can be requested in parallel with valuation and legal work to compress the overall timeline.
Slow Responding Lenders
Some lenders — particularly certain building societies and specialist residential mortgage lenders — have slow or complex consent processes. Delays of 2–4 weeks are common with some providers. This can be fatal for auction deadlines and other time-sensitive transactions. Always check the consent timeline for your specific existing lender before incurring costs.
When Consent Is Not Available
Some lenders refuse consent entirely — either as blanket policy for certain mortgage products or on specific cases. If consent is refused, a standard second legal charge cannot be registered. An equitable charge structure may be the alternative — see the section below. The legal rights available to an equitable charge lender differ from a legal second charge, which affects the lender pool and pricing.
The consent position should be confirmed as early as possible — before valuation and legal fees are committed. On time-sensitive cases, instructing the solicitor to simultaneously request consent while the valuation is ordered can save critical days. We check the likely consent position for your specific existing lender at DIP stage — before any costs are incurred by you.
When Consent Is Refused: Equitable Charge Bridging
If your first charge lender refuses consent for a second legal charge, an equitable charge bridging loan may be the alternative route. Rather than registering a formal legal charge at HM Land Registry — which requires the first lender's consent — an equitable charge creates a binding legal interest in the property through property law principles without needing that consent.
Second Legal Charge
- Registered formally at HM Land Registry
- Requires first charge lender consent
- Gives lender direct enforcement rights including statutory power of sale
- Wider lender appetite — more competitive pricing
- Standard route where consent is available and forthcoming
Equitable Charge
- Does not require first charge lender consent
- Creates a legal interest in the property through an alternative legal mechanism
- Lender has different enforcement rights compared to a legal second charge
- Priced at standard second charge rates through Aura Capital — no premium
- Available where a second legal charge is blocked or impractical
Most brokers stop the moment a first charge lender declines consent. We don't. Where the decline is policy-based rather than a reflection of your own conduct, we can very often still complete your loan through our equitable charge route — at the same competitive pricing you'd expect from a standard second charge. Full detail on eligibility, pricing and process is on our equitable charge bridging loans page →
An equitable charge lender has different — and generally more limited — enforcement rights compared to a registered legal second charge holder. This restricts the lender pool and means it isn't available for every case: declines caused by arrears or credit issues on the first charge, or first charges that are flexible/offset mortgages, are not eligible. It is a genuine solution for cases where consent is unavailable for policy reasons, but the legal position and lender appetite must be assessed carefully on each case. We identify the correct route — legal second charge or equitable charge — at DIP stage, before any legal or valuation costs are committed.
Second Charge No Valuation: Remove the Valuation Fee and the Delay
On qualifying standard residential cases, a second charge bridging loan can complete without a physical surveyor visit. An automated valuation model (AVM) confirms the property's value the same day — using comparable sales, local market data, and property attributes — so you avoid both the cost and the diary delay of a traditional RICS inspection. Combined with same-day consent checking and parallel legal instruction, this makes the no valuation route one of the fastest ways to release equity behind an existing mortgage.
The AVM route stacks two efficiencies together: the second charge structure keeps your existing mortgage fully intact, raising only the additional capital you need; and automated valuation removes the physical inspection entirely, replacing it with a same-day, data-driven confirmation of value. No surveyor visit, no valuation fee, no waiting on a diary slot.
AVM Leverage Tiers — How Much Can You Borrow Without a Valuation?
The maximum LTV available on the automated valuation route scales with loan size. Above these thresholds, a desktop or physical valuation unlocks higher leverage — but the no-val route covers the majority of second charge bridging enquiries.
| Loan Size | Max LTV — AVM Route | Valuation Fee | Notes |
|---|---|---|---|
| Up to £150,000 | Up to 70% LTV | Nil | Best leverage tier — same-day automated valuation. |
| Up to £250,000 | Up to 60% LTV | Nil | Automated valuation, no physical inspection required. |
| Up to £500,000 | Up to 50% LTV | Nil | AVM still available at this loan size. |
| Above £500,000 or above the LTV bands above | Physical valuation route | £400–£1,500+ | Full RICS inspection — unlocks higher leverage where needed. See our standard second charge rate table. |
Property value £300,000. Existing mortgage £120,000. At 70% LTV, total borrowing can reach £210,000 — a second charge loan of up to £90,000, confirmed same day via automated valuation. Valuation fee: nil. Upfront cost to the borrower before completion: zero (arrangement fee deducted from the advance at completion).
When the AVM Route Is Available
- Standard residential construction — houses, bungalows, standard flats
- Good comparable sales data available locally
- First charge must be a term mortgage (not a bridge)
- AVM and open market value diverge by less than 10%
- AVM confidence rating meets lender threshold
- Lease term 85+ years remaining (if leasehold)
When Physical Valuation Is Needed
- New-build properties
- Leases under 85 years remaining
- AVM returns a weak confidence rating
- Loans above £500,000
- CLTV above the AVM tier thresholds in the table above
- Non-standard construction or unusual property types
We check AVM eligibility as part of the same-day DIP assessment — before you commit to any costs. If the automated valuation is not available for your property, we move to the fastest appropriate alternative immediately. You lose no time finding this out. For full detail on the no valuation route and product fee structure, see our dedicated second charge no valuation bridging loans page →
Second Charge Bridging Loan Rates — July 2026
Second charge bridging rates in 2026 start from 0.83% per month for qualifying cases at conservative CLTV with clean credit and a clear, evidenced exit strategy. The rate reflects the additional lender risk from sitting behind the first charge — second charge bridging typically runs 0.10%–0.30% pm higher than equivalent first charge cases on the same property and borrower profile.
Rates are set by individual lenders based on the specific case — not published rate cards. The combination of CLTV, property type, exit quality, borrower profile, and term all feed into the pricing offered. As a whole-of-market broker we compare the full lender panel on each enquiry and present the most competitive available terms for the specific case.
| Scenario | Indicative Rate | Max CLTV | Notes |
|---|---|---|---|
| Clean residential — strong exit, low CLTV (variable) | From 0.83% pm | Up to 65% | 0 credit demerits in last 12 months. AVM or physical valuation. |
| Residential investment — standard second charge (variable) | 0.90%–1.15% pm | Up to 70% | Where the majority of transactable second charge cases price. |
| Fixed rate option | 1.01%–1.25% pm | Up to 75% | Fixed pricing across same LTV bands where certainty is preferred over variable pricing. |
| Commercial or semi-commercial second charge | 1.10%–1.35% pm | Up to 65% | Fewer lenders active; more detailed underwriting on the security. |
| Adverse credit — second charge | 1.20%–1.50% pm | Up to 65% | Asset quality and exit carry most weight. Credit severity matters. |
| Equitable charge (consent refused) | From 0.83% pm | Up to 65% | Priced at standard second charge rates through Aura Capital. See our equitable charge page. |
How Credit History Affects Your Rate
Clean credit with zero demerits in the last 12 months secures our sharpest pricing from 0.83% pm. Light adverse credit adds a modest loading rather than pushing you out of the market entirely:
| Credit Profile | Rate Loading | Notes |
|---|---|---|
| Clean — 0 demerits in last 12 months | Best available rate | Historic adverse credit (satisfied, older) considered on a case-by-case basis without automatic loading. |
| Light adverse — 1 demerit | +0.15% pm | A single CCJ, default, or small secured arrears in the last 12 months. |
| Moderate adverse — 2 demerits | +0.25% pm | Two credit events in the last 12 months — still fundable on strong asset and exit cases. |
Full Cost of a Second Charge Bridge
The monthly rate is only one component of total cost. Model the full picture before comparing lenders or routes — a lower rate with higher fees can be more expensive in total than a slightly higher rate with lower fees on a short-term facility.
| Cost Component | Typical Range | Notes |
|---|---|---|
| Monthly interest | From 0.83% pm | Applied to the second charge loan amount only — not the full CLTV stack. |
| Arrangement / product fee | 1.5%–2% (min £1,000) | Of the second charge gross loan. Typically deducted from advance on completion. |
| Valuation fee | £0–£1,500+ | Nil on qualifying AVM cases. See our second charge no valuation route. |
| Legal fees — borrower's solicitor | £1,000–£2,500 | Second charge legal work involves title review, consent, and deed of priority. |
| Legal fees — lender's solicitor | From 0.3% (min £750) | Usually paid by the borrower on second charge transactions. |
| Title insurance | From £100 | Scaling with loan size. Required on all cases. |
| Consent fee | £0–£500+ | Some first charge lenders charge an admin fee to process the consent request. Varies by lender. |
| Exit fee | 0%–1% | Product dependent — confirm at DIP stage. No-exit-fee products available on second charge. |
| Telegraphic transfer fee | £30 | Standard charge on completion. |
The monthly bridge rate applies to the second charge loan amount alone — not the total CLTV stack. If your property is worth £400,000 with a £200,000 first charge mortgage, and you take a £60,000 second charge bridge at 0.90% pm, the monthly interest is £540 — calculated on £60,000 only. Your existing mortgage payments continue separately as normal throughout the bridge term.
Second Charge Bridging Loan Use Cases
Second charge bridging is used wherever a borrower needs to access equity quickly from a property that carries an existing mortgage they want — or need — to keep in place. The common thread is speed of capital release without the cost or disruption of replacing the existing first charge.
Auction Purchase Deposit
Release equity from an existing property to fund the deposit or full completion on an auction purchase. The second charge bridge provides the capital; the exit is typically sale of the bridged property or refinance of the auction asset once the works or purchase completes.
Refurbishment Capital
Fund works on an investment property without disturbing the existing mortgage. Raise the refurbishment budget against existing equity, carry out works, then refinance at the improved end value. The first mortgage stays intact and untouched throughout the build.
Chain Break Purchase
Use existing equity to complete a purchase before your current property has sold. Avoids losing the onward purchase whilst the existing sale completes at its own pace. The second charge bridge is redeemed on sale of the security property.
Business Cash Flow or Tax Liability
Release property equity for urgent business needs — HMRC liabilities, working capital shortfalls, deposits, or short-term liquidity requirements. Particularly useful where the property is held personally or through a company with an existing charge that cannot be touched without penalty.
Portfolio Capital Raise
Raise capital against one asset in a portfolio to fund the acquisition of another, or to restructure wider debt. Avoids remortgaging an entire portfolio — targets the specific asset with available equity and an appropriate exit without disrupting the rest of the portfolio. No limit on portfolio size or property count.
Development Exit Breathing Space
Use second charge bridging against an existing investment property to create breathing space on a development project — repaying pressure debt, completing outstanding works, or managing cashflow until a development sale or refinance completes.
Matrimonial or Probate Settlement
Release equity quickly to facilitate a matrimonial settlement, equalise an estate, or buy out co-owners without forcing a full sale or remortgage of the property. The bridge provides the capital; the exit is typically refinance or voluntary sale on agreed terms.
Planning Gain or Pre-Development
Release equity from an existing property to fund planning costs, architect fees, or pre-development expenditure before a development loan can be drawn. Keeps the existing mortgage in place while the development project is structured and funded separately.
Second Charge Bridge vs Remortgage: Which Is Right?
The choice between a second charge bridging loan and a full remortgage comes down to three questions: does keeping the existing mortgage save money (ERCs or favourable rate)? How quickly do you need the funds? And is the capital requirement short-term or long-term?
| Factor | Second Charge Bridge | Full Remortgage |
|---|---|---|
| Existing mortgage disturbed? | No — kept fully in place | Yes — replaced entirely |
| Early repayment charges? | Avoided — existing deal stays | May trigger if still in fixed rate period |
| Speed | Typically 5–21 days (consent dependent) | 4–8 weeks for most standard remortgages |
| Cost | Higher rate — short-term specialist product | Lower rate — but ERCs and legal costs can offset savings |
| Capital amount flexibility | Raise exactly the additional capital needed | Full remortgage may raise more than required |
| Term | 1–24 months — must have a clear exit | Long-term — no exit required |
| Best used when | Existing rate is favourable, ERCs apply, speed is needed, short-term capital required | Existing rate is uncompetitive, long-term capital needed, no ERCs |
If your existing mortgage has early repayment charges, a second charge bridge is almost always cheaper in total than remortgaging — even though the bridge rate is higher. An ERC of 2–3% on a £300,000 mortgage is £6,000–£9,000. A second charge bridge at 0.90% pm on £60,000 for 6 months costs £3,240 in interest. The total-cost maths frequently favours keeping the first charge intact and layering a bridge on top.
Second Charge Bridging Loan vs Second Charge Mortgage
These two products are frequently confused — they share the same security structure (a second charge registered behind an existing first charge mortgage) but serve fundamentally different purposes and operate under different underwriting criteria, timelines, and regulations.
A second charge mortgage is a long-term consumer finance product — typically 5–25 years — subject to FCA mortgage regulation, full affordability assessment, and the same underwriting rigour as any mainstream mortgage. A second charge bridging loan is a short-term bridge, typically 1–24 months, asset-led, and designed for speed rather than long-term affordability.
| Factor | Second Charge Bridging Loan | Second Charge Mortgage |
|---|---|---|
| Purpose | Short-term capital release — bridge to an exit event | Long-term additional borrowing — no exit required |
| Term | 1–24 months | 5–25 years typically |
| Speed of completion | 5–21 days | 4–10 weeks |
| Underwriting basis | Asset-led — equity, CLTV, and exit carry most weight | Income-led — full affordability assessment required |
| Exit strategy required? | Yes — essential and must be credible | No — long-term repayment from income |
| FCA regulation | Unregulated on most investment/commercial cases | Usually regulated — FCA mortgage rules apply |
| Rate structure | Monthly rate — retained, rolled up, or serviced | Annual rate — typically capital and interest |
| Right product when | You need capital quickly and have a defined exit within 24 months | You need additional long-term borrowing and can pass affordability |
If yes — a second charge bridge is likely the right product. If you need capital for longer than 24 months and have a stable income that can support monthly repayments, a second charge mortgage may be the more appropriate long-term solution. We advise on both — and present the full options on every enquiry so you can make an informed decision on the right product for your specific situation.
How to Apply for a Second Charge Bridging Loan
The additional complexity of second charge bridging — consent from the first lender, deed of priority, existing charge review — means preparation and parallel workstreams are essential. The fastest completions happen when the consent position is confirmed early and valuation, legal, and consent all run simultaneously from instruction.
DIP, Best-Rate Check & Consent Request — Same Day
We assess the property value, existing mortgage outstanding balance, second charge loan required, combined CLTV, and exit strategy. We also check AVM eligibility and the likely consent position with the specific first charge lender before any costs are incurred. If consent is granted, you get the widest market and best available pricing. If it's declined, we assess the equitable charge fallback straight away — nothing stalls. Same-day DIP on most cases where the information provided is complete.
Consent Request & Valuation — Run in Parallel
The consent request to the first charge lender and the valuation instruction run simultaneously. Valuation route depends on the property and loan size — AVM (same day, nil fee, on qualifying residential cases via our no valuation route), desktop (1–2 days), or full RICS inspection (3–5 days). Solicitors instructed at the same stage. Running these workstreams in parallel is what compresses the overall timeline on second charge cases versus handling them sequentially.
Formal Offer & Deed of Priority
The lender issues a formal offer once consent, valuation, and the initial legal review are all in. The deed of priority — a legal agreement setting out the ranking order between first and second charge lenders — is prepared by the solicitors. Key documents at this stage: ID and proof of address, property title, existing mortgage statement, exit evidence, and entity structure documents if borrowing through a limited company.
Completion — Second Charge Registered
Funds are released once legals complete and the second charge is formally registered at HM Land Registry. On straightforward cases with AVM valuation and prompt consent from the first lender, completion can happen within 5–10 working days of instruction. Complex cases, slow-responding existing lenders, or full valuations typically extend this to 3–4 weeks. The exit plan is confirmed and documented at completion — not left to manage in the final weeks of the term.
- Property address and current estimated market value
- Existing mortgage lender name and approximate outstanding balance
- Second charge loan amount required and purpose
- Term needed and exit strategy (sale, refinance, or capital event)
- Any early repayment charges on the existing first charge mortgage
- Borrower structure — individual, limited company, LLP, or SPV
- Any adverse credit — disclosed early avoids wasted time later in the process
Second Charge Bridging Loan Eligibility
Second charge bridging is primarily asset-led. The equity position, combined CLTV, and quality of the exit carry significantly more weight in underwriting than income or employment status. The key requirements that affect eligibility beyond the CLTV position are: the first lender consent position, the quality and realism of the exit strategy, and the borrower's ability to service or roll the interest through the bridge term.
Who Can Apply
- Individuals, Ltd companies, LLPs, SPVs
- Landlords, investors, business owners, developers
- UK residents and non-UK nationals (specialist lenders available)
- Age 18+ — most lenders up to age 80–85
- Adverse credit considered on strong asset and exit cases
- First-time investors considered on well-structured cases
Security Requirements
- Residential owner-occupied and investment property
- Commercial and semi-commercial (specialist lenders)
- HMO and multi-unit properties considered
- Portfolio assets — no limit on number of properties
- Minimum property value typically £100,000+
- England, Scotland, and Wales
Exit Requirements
- Clear, credible, and achievable within the agreed term
- Sale: comparable evidence, realistic pricing, agent support
- Refinance: must be able to pass lender affordability at exit date
- Business repayment or capital event: evidenced timeline and source
- Refinance exit must account for 6-month ownership rule where relevant
- Weak or vague exits are the most common reason for refusal
Second Charge Bridging with Adverse Credit
Adverse credit does not automatically disqualify a second charge bridging application. Lenders focus on the available equity, the CLTV position, and the quality of the exit rather than the credit score or credit history alone. Satisfied CCJs, historic defaults, mortgage arrears, and discharged bankruptcy are regularly considered where the security is strong and the exit is evidenced and credible.
The key question to address upfront is whether the proposed exit depends on refinancing — if it does, the borrower's likely credit profile at the exit date matters, and lenders will want to understand this at application stage rather than discovering a problem at the last minute. See our dedicated bad credit bridging loans page for more detail on what is and isn't possible with adverse credit.
Portfolio Landlords
There is no limit on the number or total value of properties in a portfolio for second charge bridging applications. Maximum overall portfolio LTV is 75% — cases with more than 15 securities and an overall LTV above 65% are considered by referral rather than declined outright. The second charge sits against the specific security property, not the whole portfolio.
Regulated vs Unregulated Second Charge Bridging
Whether a second charge bridge is regulated depends on the property and who occupies it. If the property is occupied by the borrower or a close family member as their main residence, the facility is likely regulated under FCA consumer mortgage rules — which affects which lenders can offer it, the documentation required, and what borrower protections apply. Investment property, commercial assets, and most limited company transactions are unregulated bridging. The regulatory status is confirmed at DIP stage as it materially affects the lender panel and the documentation process. See our regulated bridging loans page for more on regulated cases.
Why Use a Specialist Broker for Second Charge Bridging?
Second charge bridging is a specialist market. The combination of second charge security, first lender consent requirements, deed of priority legals, and a narrower pool of active lenders means the difference between a successful transaction and a wasted month is usually the broker — specifically, how quickly the consent position is identified, whether the correct route is selected at the outset, and whether the full lender panel is accessed.
Lenders Not Available Direct
Many specialist second charge bridging lenders operate exclusively through brokers. Direct applications are not accepted. Access to the full lender panel — and the most competitive pricing — is only available through an intermediary with established relationships.
Consent Position Checked First
We confirm the likely consent position with your specific existing lender before any costs are incurred. If consent is likely to be refused, we identify the equitable charge route at DIP stage — not after valuation and legal fees have been spent.
Correct Route Selected Upfront
Legal second charge, equitable charge, or AVM no-val route — the structure must be determined at the start, not discovered mid-transaction. Getting this wrong wastes time and money. We identify the appropriate structure before any lender is formally approached.
No Upfront Fees
We charge no broker fee upfront and no fee at all if the case does not complete. Our fee is agreed, disclosed, and paid on completion. You are not charged for an enquiry, a DIP, or a case that does not proceed.
The rate difference between the most and least competitive second charge bridging lenders on the same case can be 0.20%–0.40% per month — equivalent to £2,400–£4,800 on a £100,000 loan over 12 months. Accessing the full panel rather than a restricted number of lenders is not an administrative nicety — it directly affects the total cost of the facility. And where consent is declined, we're one of the few brokers who can take your case to an equitable charge route rather than simply closing the file.
Second Charge Bridging Case Studies
Case Study 1 — Equity Release for Auction Deposit, Existing BTL Mortgage Preserved, Manchester
Exit Completed: 4 MonthsSituation: Experienced landlord held a BTL property worth £320,000 with £160,000 outstanding mortgage at a fixed rate with 18 months remaining and a 3% ERC. Needed £75,000 quickly to fund the deposit and completion on an auction purchase. Remortgaging would have triggered a £4,800 ERC plus new legal costs — making the total cost of a remortgage route significantly higher than a second charge bridge.
Finance: Second charge bridge at 0.95% pm for 6 months. Total interest: £4,275. Arrangement fee (1.75%): £1,313. Consent granted by existing BTL lender within 4 working days. Completion in 11 working days from instruction.
Outcome: Auction purchase completed. Bridge redeemed from sale proceeds of the auction property at month 4. ERC on existing BTL mortgage avoided — saving £4,800 vs the remortgage route. BTL mortgage remains at its original fixed rate through to natural expiry.
Case Study 2 — First Lender Consent Refused, Equitable Charge Route, Bristol
Consent Issue Resolved — Completed Day 14Situation: Property owner needed £55,000 for a time-sensitive business opportunity. First charge lender (a building society) refused consent for a second legal charge as a matter of blanket policy — they do not permit second charges on any of their residential mortgages. Two other brokers had declined the case, telling the client it was not fundable, before it reached us.
Approach: Standard second legal charge route confirmed as blocked at DIP stage — before any costs were incurred. Equitable charge specialist route identified. Consent from first lender not required for this route. Specialist legal process completed in 14 calendar days from instruction.
Outcome: Business opportunity funded on time. Bridge redeemed at month 5 from business trading income. Priced at standard second charge rates through Aura Capital's equitable charge route — no premium paid for proceeding where consent was blocked. Previous brokers had told the client the transaction was impossible.
Case Study 3 — HMRC Self-Assessment Liability, Residential Investment Portfolio, London
Tax Liability Cleared — 7 Working DaysSituation: Portfolio landlord with a significant HMRC self-assessment liability and a hard payment deadline. Held a residential investment property worth £650,000 with a £280,000 outstanding first charge mortgage on a fixed rate deal with 14 months remaining and substantial ERCs. Could not remortgage without triggering the ERC and facing the delay of a full remortgage process that would miss the HMRC deadline regardless.
Finance: Rate 0.87% pm on retained interest basis. AVM valuation completed same day via our second charge no