Second Charge Bridging Loan Case Study — Canterbury, Kent
A borrower needed a second charge bridging facility completed within one month to meet time-sensitive business commitments. Traditional lenders could not move at the required pace. Aura Capital delivered a £116,000 facility against a £1,000,000 Canterbury property — no valuation fee, AVM approved on day one, funds drawn in 10 days.
The Situation
Our client held a residential property in Canterbury, Kent — valued at £1,000,000 — against which a first charge mortgage was already registered. They needed to raise capital quickly to support time-sensitive business commitments, and needed it structured in a way that did not disturb their existing mortgage arrangements.
A second charge bridging loan was the appropriate solution: it sits behind the existing first charge lender, accessing the equity in the property without requiring the first charge to be repaid or restructured. For borrowers with a mortgage in place on a well-equitied asset, a second charge bridge is often the fastest and most cost-efficient route to liquidity.
The client had approached traditional lenders, but none could move within the required timeframe. With business commitments on the line and a deadline approaching, Aura Capital was instructed to deliver within one month.
What Is a Second Charge Bridging Loan?
A second charge bridging loan is a short-term facility secured against a property that already has a first charge mortgage registered against it. The bridging lender takes a second ranking security position — behind the first charge lender — and lends against the available equity in the asset.
Second charge bridging is widely used by borrowers who need to raise capital quickly without disturbing an existing mortgage, particularly where the mortgage has favourable terms they do not want to break. It is also useful where a full remortgage would take too long or incur early repayment charges that make it uneconomical.
Combined with a no valuation approach, a second charge bridge can be structured and completed at significant pace — as this case demonstrates. Where an Automated Valuation Model (AVM) is appropriate, the need for a physical RICS inspection is removed entirely, eliminating both the cost and the lead time a surveyor instruction would introduce.
How Aura Capital Structured the Deal
The valuation was conducted using an Automated Valuation Model — a desktop assessment that draws on market data, comparable transactions, and property-level analytics to arrive at a value conclusion without a physical inspection. The AVM was approved on the first day of the process, at zero cost to the borrower. There was no surveyor to instruct, no inspection to schedule, and no report to wait for.
No valuation fee. No surveyor. No delay. The AVM was approved on day one, removing the most common source of cost and friction in a second charge bridging transaction. The borrower paid nothing for the valuation and lost no time waiting for a report.
The facility was structured at £116,000 — 50% LTV against the £1,000,000 asset value — at a rate of 0.97% per calendar month. Interest was fully retained for the 12-month term, meaning the borrower had no monthly payment obligation and could deploy the capital directly into their business commitments without managing ongoing finance costs.
Documents were sent electronically and signed remotely. There were no office visits, no notary appointments, and no unnecessary steps between application and completion. From the date of application to funds drawn, the entire transaction took 10 days.
Day-by-Day: From Application to Funds
The Numbers
| Location | Canterbury, Kent |
| Asset value | £1,000,000 |
| Loan amount | £116,000 |
| LTV | 50% |
| Rate | 0.97% per calendar month |
| Term | 12 months |
| Charge | Second charge |
| Interest | Fully retained |
| Valuation | AVM — zero valuation fee |
| Time to completion | 10 days |
| Purpose | Business capital raise |
| Product | Bridging Finance (Unregulated) |
Why This Case Worked
The low leverage was the foundation. At 50% LTV against a £1,000,000 asset, the security position was strong — even in a second charge position behind an existing mortgage. That headroom allowed Aura Capital to apply an AVM rather than requiring a physical inspection, which in turn enabled the transaction to move at a pace no traditional lender could match.
The second charge no valuation approach is not appropriate for every case — it works where the asset is well-evidenced, the LTV is conservative, and the available equity provides meaningful security in the second charge position. This case met all three criteria clearly, making the AVM route both appropriate and straightforward to execute.
The electronic document process removed the last remaining source of delay. With the valuation resolved on day one and underwriting moving quickly, the only remaining variable was legal execution — and by handling that electronically, the timeline was compressed to the point where funds were drawn just 10 days after the initial application.
For borrowers with a deadline, this is exactly what no valuation bridging finance is designed to deliver: a lending decision grounded in proper assessment of the asset, executed without the procedural delays that prevent conventional lenders from moving at the pace a commercial situation requires.
Products Used in This Case
This transaction was delivered using Aura Capital's second charge no valuation bridging loan — structured for a borrower who needed rapid liquidity against an equitied residential asset without disturbing their existing first charge mortgage. If you need to raise capital quickly against a property you already hold a mortgage on, and want to avoid the cost and delay of a physical valuation, a second charge no valuation bridge may be the right fit.
Related products that may also be relevant include our no valuation bridging loans for first charge cases where a desktop or AVM assessment is appropriate, and our broader bridging finance range for residential and investment property across England and Wales.
Need a Second Charge Bridge — Fast?
If you need to raise capital quickly against a property you already have a mortgage on, Aura Capital can assess your case, confirm the AVM route where appropriate, and move to completion without unnecessary delay. No portals, no layers of approval — direct access to decision-makers from day one.
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