Second charge bridging loans to raise capital without remortgaging
You've got equity in a property, but it already has a mortgage you'd rather keep, perhaps on a good rate or with early repayment charges. A second charge bridging loan sits behind that mortgage and releases short-term capital while the existing mortgage stays exactly as it is. The number that matters is your combined LTV: your mortgage plus the new loan, against the property's value.
Rates from around 0.83% a month, up to 70% combined LTV on qualifying cases. Straightforward cases complete in days to a few weeks.
On this page
The short version
- A second charge bridge sits behind your existing mortgage, which stays in place, so you avoid remortgaging and any early repayment charges.
- Lenders look at combined LTV: (existing mortgage + new loan) ÷ property value. Up to 70% on qualifying cases.
- Rates from around 0.83% a month, a little higher than first charge bridging because the lender ranks second.
- You'll normally need your mortgage lender's consent. If it's refused or delayed, an equitable charge may work on selected products.
- No physical valuation on qualifying cases, using an AVM. Straightforward cases complete in days to a few weeks.
- Interest is charged on the new loan only. Your mortgage payments carry on as normal.
What is a second charge bridging loan?
A second charge bridging loan is short-term finance secured on a property that already has a mortgage. Your existing lender keeps first place and is repaid first if the property is ever sold. The bridging lender takes a second charge behind it, so you can raise capital without replacing or disturbing your existing mortgage.
The usual reason is simple: the existing mortgage is worth keeping. It might be on a rate you'll never see again, or have early repayment charges that make a remortgage expensive. Remortgaging also takes weeks. A second charge bridge leaves all that alone and adds a separate short-term loan on top, repaid when your exit completes.
Your mortgage lender (first charge)
- Registered first at HM Land Registry
- Repaid first from any sale
- Its consent is usually needed for a second charge
- Your mortgage terms stay unchanged
The bridging lender (second charge)
- Registered second, behind your mortgage
- Repaid from the equity that's left
- Takes more risk, so charges a little more
- Lends against your combined LTV
How combined LTV works
Combined LTV (CLTV) is the number every second charge lender works from. It adds your existing mortgage to the new loan and compares the total with the property's value.
Combined LTV = (existing mortgage + new second charge loan) ÷ property value
Maximum new loan = (property value × maximum combined LTV) − existing mortgage
| Example | At 65% combined LTV | At 70% combined LTV |
|---|---|---|
| Property value | £600,000 | £600,000 |
| Maximum total borrowing | £390,000 | £420,000 |
| Less your existing mortgage | £250,000 | £250,000 |
| Maximum gross second charge | £140,000 | £170,000 |
That figure is the gross loan. The arrangement fee and any retained interest come out of it, so the cash you receive will be lower. The calculator on this page shows both.
| Combined LTV | Lender appetite | Pricing |
|---|---|---|
| Under 60% | Strong, the widest choice | Best available |
| 60% to 65% | Good, where most cases sit | Competitive |
| 65% to 70% | On strong cases | Modest premium |
| Above 70% | Limited, selected scenarios only | Higher, needs a very strong case or extra security |
Get your current mortgage balance from a recent statement and use a realistic value, not what you paid. Those two figures decide almost everything else.
Your mortgage lender's consent
To register a legal second charge, you'll normally need consent from your existing mortgage lender, because its charge usually puts a restriction on the title. Consent is the most common cause of delay on second charge bridges, so we check the likely position before you spend anything.
Consent granted
Many lenders have a standard process and reply within a few working days to a week. Investment property with a clear purpose is usually smoothest. The request can run alongside the valuation and legals.
Widest choice, best pricingConsent delayed
Some lenders, including certain building societies, take two to four weeks. That can be fatal to an auction deadline, so check your lender's timescale before committing.
Plan around itConsent refused
Some lenders refuse second charges as policy. A legal second charge can't then be registered, but an equitable charge may be possible on selected products.
Consider an equitable chargeThe equitable charge option
An equitable charge secures the loan through an equitable interest rather than a registered legal charge. It's a specialist route with real limits:
- You'll normally need evidence that consent was requested and refused, or in some cases is still pending
- Combined LTV is often limited to 65%, and up to 70% on selected cases
- It's mainly for residential property
- Some lenders won't help if consent was refused because of arrears or credit issues on the mortgage, or behind flexible or offset mortgages
- Selected products are priced at standard second charge rates, from 0.93% a month
It isn't a like-for-like replacement for a legal second charge, and your mortgage terms still apply. If consent is available, the legal second charge is usually the better route.
Second charge bridge vs remortgage, and vs a second charge mortgage
Second charge bridge or remortgage?
| Second charge bridge | Full remortgage | |
|---|---|---|
| Existing mortgage | Kept in place | Replaced |
| Early repayment charges | Avoided | May apply during a fixed period |
| Speed | Typically 5 to 21 days, depending on consent | Usually 4 to 8 weeks |
| Rate | Higher, short-term | Lower, long-term |
| Amount | Just the extra you need | May raise more than you need |
| Term | 1 to 24 months, with an exit | Long-term, no exit needed |
| Best when | Your rate is good, ERCs apply, speed matters, the need is short-term | Your rate is poor, you need long-term money, no ERCs |
An early repayment charge of 2% to 3% on a £300,000 mortgage is £6,000 to £9,000. A second charge bridge of £60,000 at 0.90% a month for six months costs £3,240 in interest. Even at a higher rate, leaving the first mortgage alone is often cheaper overall.
Second charge bridge or second charge mortgage?
They share the same security structure but do different jobs. A second charge mortgage is long-term borrowing over 5 to 25 years, assessed on your income and usually regulated. A second charge bridge is short-term, asset-led and built for speed.
| Second charge bridge | Second charge mortgage | |
|---|---|---|
| Purpose | Short-term capital until an exit | Long-term extra borrowing |
| Term | 1 to 24 months | Typically 5 to 25 years |
| Speed | Typically 5 to 21 days | Typically 4 to 10 weeks |
| Underwriting | Equity, combined LTV and exit | Full affordability on income |
| Exit needed? | Yes, and it must be credible | No, repaid from income |
| Regulation | Unregulated on most investment and business cases | Usually regulated |
| Payments | Monthly rate, retained, rolled or paid monthly | Monthly capital and interest |
If you have a clear exit within 24 months, a bridge usually fits. If you need long-term borrowing repaid from income, a second charge mortgage may suit better. If that's regulated, we arrange an independent FCA-authorised adviser at no cost to you.
Second charge bridging rates and costs
Rates start from around 0.83% a month for qualifying cases with a conservative combined LTV, clean credit and a clear exit. Second charge bridging typically runs 0.10% to 0.30% a month above an equivalent first charge, because the lender ranks behind your mortgage.
| Scenario | Indicative rate | Max combined LTV | Notes |
|---|---|---|---|
| Residential, low combined LTV, strong exit | From 0.83% pm | Up to 65% | Clean credit in the last 12 months |
| Residential investment, standard | 0.90% to 1.15% pm | Up to 70% | Where most cases price |
| Fixed rate option | 1.01% to 1.25% pm | Up to 70% | Where certainty matters more than the lowest rate |
| Commercial or semi-commercial | 1.10% to 1.35% pm | Up to 65% | Fewer lenders, more detailed underwriting |
| Adverse credit | 1.20% to 1.50% pm | Up to 65% | The property and exit carry most weight |
| Equitable charge, consent refused | From 0.93% pm | Often 65%, up to 70% selected | Selected products, no extra equitable loading |
The full cost
| Cost | What to expect |
|---|---|
| Interest | Charged on the second charge loan only, not your mortgage. Retained, rolled up or paid monthly |
| Arrangement fee | From 1%, typically 1.5% to 2% of the gross loan, usually deducted on completion |
| Valuation | Nothing on qualifying AVM cases, more where a physical valuation is needed |
| Legal fees | Your solicitor and the lender's, covering title, consent and the deed of priority |
| Consent fee | Some mortgage lenders charge an admin fee to process consent |
| Other | 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 |
A lower rate with higher fees can cost more on a short loan than a slightly higher rate with lower fees, so compare the total. On a £60,000 second charge at 0.90% a month, the interest is £540 a month, worked out on the £60,000 only.
Work out how much you can raise
Enter the value, your mortgage and the loan. You'll see your maximum, the combined LTV and the cash after fees.
Is a physical valuation always needed?
No. On qualifying standard residential cases, an automated valuation (AVM) confirms the value the same day, with no surveyor visit and usually no valuation fee. AVMs tend to be available on smaller loans at lower combined LTVs. The bigger the loan, the lower the LTV a lender will accept on an AVM.
AVM usually works
- Standard houses, bungalows and flats
- Good local sales evidence
- A term mortgage as the first charge
- A long lease, if leasehold
Physical valuation usually needed
- New builds and short leases
- Weak AVM confidence
- Larger loans or higher combined LTV
- Non-standard or unusual property
More on this: AVM bridging loans and no valuation bridging loans.
When is second charge bridging used?
Auction deposits and purchases
Release equity from a property you own to fund an auction buy. See auction bridging.
Refurbishment money
Fund works on another property without touching the mortgage, then refinance at the higher value.
Business cash flow and tax bills
HMRC liabilities, working capital or a deposit, raised quickly against property you own.
Portfolio capital
Raise money against one property to buy another, without remortgaging the whole portfolio.
Development breathing space
Ease pressure on a development project until a sale or refinance completes. See development exit.
Settlements and buy-outs
Matrimonial or probate settlements, or buying out a co-owner, without forcing a sale or remortgage.
Who can get a second charge bridging loan?
It's asset-led. Your equity, combined LTV, consent position and exit matter far more than your income or credit score.
Borrower
Individuals, limited companies, LLPs and SPVs. Landlords, investors, business owners and developers, including first-time investors. UK and non-UK nationals with specialist lenders.
Property
Residential investment, HMOs, and commercial or semi-commercial with specialist lenders. Usually worth £100,000 or more, in England, Scotland or Wales.
Exit
Clear and achievable within the term: a sale with comparables, a refinance you can qualify for, or an evidenced capital event. Vague exits are the most common reason for refusal.
Bad credit
Selected lenders consider adverse credit, usually at higher rates (typically 1.20% to 1.50% a month) and a lower combined LTV (up to 65%). If your exit is a refinance, your credit will matter to that lender too, so we check it at the start. See bad credit bridging loans.
Regulated or unregulated?
If you or a close family member live in the property, the loan is likely to be regulated. Investment, commercial and business-purpose cases are usually unregulated. Aura Capital arranges unregulated loans, and for regulated cases we arrange an independent FCA-authorised adviser at no cost to you. See regulated bridging.
How a second charge bridge works, step by step
Straightforward cases with an AVM and quick consent can complete in 5 to 10 working days. Slower consent, complex cases or a full valuation usually mean 3 to 4 weeks. There are no guarantees, as consent timing is in the mortgage lender's hands.
Decision in principle and consent check
We work out your combined LTV and available equity, check AVM eligibility and look at the likely consent position with your mortgage lender, before you pay anything. If consent looks unlikely, we look at the equitable charge option straight away.
Consent request and valuation together
The consent request goes to your mortgage lender while the valuation is instructed and solicitors are appointed. Running these together is what saves the time.
Offer and deed of priority
Once consent, valuation and initial legal checks are in, the lender issues its offer, and the solicitors prepare the deed of priority setting out the ranking between the two lenders.
Completion
Funds are released and the second charge is registered at HM Land Registry. Your exit plan is confirmed from day one.
Send these for a same-day DIP
- The address and current value
- Your mortgage lender and balance
- The loan you need and what for
- Term and exit
- Any early repayment charges
What helps it move quickly
- A recent mortgage statement
- A mortgage lender with a quick consent process
- An AVM-eligible property
- Adverse credit disclosed early
Second charge bridging case studies
Auction deposit, buy-to-let mortgage kept, Manchester
A landlord with a £320,000 buy-to-let and a £160,000 fixed-rate mortgage (3% ERC) needed £75,000 for an auction purchase. Remortgaging would have cost a £4,800 ERC. A £75,000 second charge at 0.95% a month for six months was approved on a strong exit at 73% combined LTV, above the usual maximum. Consent took 4 working days and completion 11. The bridge was repaid from the sale at month 4, and the original mortgage stayed in place.
£75,000, 0.95% pm, 11 working daysConsent refused, equitable charge, Bristol
A property owner needed £55,000 for a business opportunity, but their building society refuses second charges as policy. The refusal was confirmed in writing at decision in principle stage, before any costs, and an equitable charge at 61% combined LTV completed on day 14. It was repaid from business income in month 5.
£55,000, 61% combined LTV, day 14HMRC deadline, London investment property
A portfolio landlord faced a hard HMRC deadline. Their £650,000 investment property had a £280,000 fixed-rate mortgage with 14 months of ERCs left, so remortgaging was too slow and too costly. A £120,000 second charge at 62% combined LTV and 0.87% a month, with retained interest and a same-day AVM, completed in 7 working days.
£120,000, 62% combined LTV, 7 working daysSecond charge bridging loan FAQs
What is a second charge bridging loan?
Short-term finance secured on a property that already has a mortgage. The bridging lender ranks behind your existing lender, so you can raise capital without remortgaging or disturbing your current mortgage. It's repaid in one go from a sale, refinance or capital event, usually within 1 to 24 months.
How is combined LTV calculated?
Add your existing mortgage balance to the new loan and divide by the property's value. On a £600,000 property with a £250,000 mortgage, a 65% limit allows total borrowing of £390,000, so the maximum new loan is £140,000 gross. At 70%, it's £170,000.
Do I need consent from my existing mortgage lender?
Normally, yes, for a legal second charge, because the mortgage lender's charge usually restricts the title. Many lenders consent within a few days to a week, while some take two to four weeks or refuse as policy.
What happens if consent is refused?
A legal second charge can't be registered, but an equitable charge may be possible on selected products. You'll normally need evidence of the refusal. Combined LTV is often limited to 65%, up to 70% on selected cases, and it's mainly for residential property. Some lenders won't help if the refusal was due to arrears on the mortgage.
What rates and maximum combined LTV apply?
Rates start from around 0.83% a month on qualifying cases, with most residential investment cases between 0.90% and 1.15%. The maximum is up to 70% combined LTV on qualifying cases, and lower for commercial property or adverse credit.
Can I raise capital without remortgaging?
Yes, that's exactly what a second charge bridge does. Your mortgage stays in place on its existing rate, and you avoid early repayment charges, which can make it cheaper overall than remortgaging even at a higher rate.
How quickly can a second charge bridge complete?
Straightforward cases with an AVM and quick consent can complete in 5 to 10 working days. Slow consent, complex cases or a full valuation usually mean 3 to 4 weeks. Consent timing is the biggest unknown.
Is a physical valuation always needed?
No. Qualifying standard residential cases can use an automated valuation the same day, usually with no valuation fee. Larger loans, higher combined LTVs, new builds and unusual property usually need a surveyor.
Can I get a second charge bridge with bad credit?
Selected lenders consider adverse credit, usually at higher rates (typically 1.20% to 1.50% a month) and up to 65% combined LTV. Equity and a strong exit carry most weight.
What is the difference between a second charge bridge and a second charge mortgage?
A second charge bridge is short-term (1 to 24 months), asset-led, quick and needs an exit. A second charge mortgage is long-term (typically 5 to 25 years), assessed on your income, repaid monthly and usually regulated.
Is interest charged on my whole mortgage?
No. Bridging interest is charged on the second charge loan only. Your existing mortgage payments continue separately.
Can a limited company get a second charge bridge?
Yes. Limited companies, LLPs and SPVs can all borrow, usually with directors' personal guarantees.
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 for landlords, investors and business owners across England, Scotland and Wales.
- Team transacted
- £500m+
- Lender panel
- 50+
How we compiled the figures
Rates, combined LTVs and costs reflect cases placed through our whole-of-market lender panel and are reviewed monthly. Criteria vary by lender, and no single product offers every feature on this page.
Related bridging products
Each product page has its own criteria and rates.
Raise capital and keep your mortgage
Send the property value, your mortgage lender and balance, the loan you need and your exit. We'll work out your combined LTV, check the likely consent position and compare the whole market the same day, 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, including your existing mortgage. Second charge bridging is subject to lender criteria, mortgage lender consent, underwriting, valuation, legal due diligence and exit assessment. Figures are indicative, based on our lender panel in October 2026. Aura Capital is a trading name of Chammosair Limited, registered in England & Wales, company no. 15786496. Aura Capital is an independent whole-of-market 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.