Second Charge Receivership Rescue Bridging Loan
A property owner's buy-to-let had been placed into receivership by Bank of Ireland following missed mortgage payments. A Together second charge on their main residence added further pressure. Aura Capital structured a £204,719 dual-security bridging loan — a first charge on the BTL to clear the receivership and redeem both existing charges, and a second charge on the main residence to clear the Together debt — leaving the existing main residence mortgage untouched.
The Situation
The borrower held two properties — a buy-to-let in the East Midlands and their main residence in the East of England. The BTL, a detached link house currently vacant with an estimated rental income of £1,000 pcm, had fallen into arrears with Bank of Ireland, the first charge lender. Bank of Ireland had formally appointed receivers — a serious enforcement position that, left unresolved, would result in the forced sale of the asset and the destruction of the equity the borrower held within it.
Compounding the position, Together held a second charge on the borrower's main residence — a separate debt of £54,000 that was also causing pressure. The main residence carried an existing first charge mortgage of £195,000 which the borrower wished to keep in place, with only the Together second charge being cleared.
The borrower needed a single bridging facility to address both positions simultaneously: rescue the BTL from receivership by clearing all charges against it, and clear the Together second charge on the main residence — without disturbing the existing mortgage. Speed was critical. Every day in receivership compounds legal and administrative costs and increases the risk of the asset being marketed for forced sale.
The Security Structure
Detached Link House
| Value | £210,000 |
| Status | Vacant — in receivership |
| First charge | Bank of Ireland — £120,719 |
| Second charge | Existing lender — £30,000 |
| Total debt | £150,719 |
| New charge | First charge (post-redemption) |
| Amount to clear | £150,719 |
Cottage
| Value | £450,000 |
| Status | Owner occupied |
| First charge | £195,000 — staying in place |
| Second charge | Together — £54,000 |
| New charge | Second charge (behind existing) |
| Amount to clear | £54,000 (Together only) |
How Aura Capital Structured the Deal
The facility was structured across both securities as a single bridging loan of £204,719 at 0.95% per calendar month, with interest fully retained over a 12-month term. Retained interest was appropriate given that the BTL was vacant at drawdown — generating no income from which monthly payments could be serviced — and the main residence carried no rental income.
Two charges cleared. Two lenders redeemed. Receivership stood down. Existing mortgage untouched. The facility was structured to clear the Bank of Ireland first charge and the existing second charge on the BTL simultaneously — exiting the receivership in a single transaction — while separately clearing the Together second charge on the main residence, leaving the first charge mortgage in place undisturbed.
The dual-security structure required careful coordination. Taking a first charge on the BTL post-receivership meant ensuring that all existing charges were redeemed at completion and that the receivership was formally stood down before or simultaneously with drawdown. Taking a second charge on the main residence behind the existing first charge mortgage required the existing mortgage lender's consent to the second charge — a standard requirement in second charge lending that adds a legal coordination layer to the process.
Together's second charge on the main residence was a specific focus. Together is an active and well-understood lender in the specialist market, and their charge documentation and redemption process is established — knowing how to manage the redemption efficiently was a material factor in keeping the transaction on track.
Lender selection was precise. A facility of this nature — dual security, receivership position, adverse credit, first and second charge across two properties — requires a lender with genuine appetite for complexity and the underwriting capability to assess it properly. Not all bridging lenders will consider a receivership rescue; fewer still will take dual security across a BTL and a main residence simultaneously. Aura Capital identified a lender with real-time appetite for this profile and structured the case to meet their underwriting requirements from the outset.
The Full Numbers
| Security 1 | Detached link house (BTL) — East Midlands |
| Security 1 value | £210,000 |
| Security 1 debt cleared | £120,719 (Bank of Ireland first charge) + £30,000 (existing second charge) = £150,719 |
| New charge — Security 1 | First charge (post-redemption) |
| Security 2 | Cottage (main residence) — East of England |
| Security 2 value | £450,000 |
| Security 2 existing mortgage | £195,000 — stays in place |
| Security 2 debt cleared | £54,000 (Together second charge) |
| New charge — Security 2 | Second charge (behind existing mortgage) |
| Combined security value | £660,000 |
| Total facility | £204,719 |
| Rate | 0.95% per calendar month |
| Interest | Fully retained |
| Term | 12 months |
| Adverse credit | Missed payments noted |
| Exit strategy | Refinance onto longer-term facilities |
| Product | Bridging Finance (Unregulated) |
Why This Case Worked
The combined security value of £660,000 against a total facility of £204,719 — even accounting for the £195,000 existing mortgage remaining in place on the main residence — provided the lender with a well-secured position across both assets. On the BTL alone, the post-redemption first charge of £150,719 against a £210,000 value is 71.8% LTV. On the main residence, the combined debt of £195,000 plus £54,000 against £450,000 is 55.3% LTV. Both positions were individually serviceable; the dual-security structure provided additional comfort.
The receivership position, while acute, is a known and manageable scenario in the specialist bridging market. Bank of Ireland's receivership process is established, and the mechanics of standing down a receiver as part of a bridging completion — with all charges being redeemed simultaneously — is a transaction type that experienced bridging lenders understand and can underwrite. The key is identifying those lenders quickly and placing the case with precision, rather than submitting broadly and waiting.
The Together redemption was the secondary workstream. Together's second charge on the main residence represented a separate creditor relationship requiring its own redemption statement, its own legal discharge, and its own coordination within the completion timeline. Managing two redemptions across two securities simultaneously, within a single facility completion, is the execution challenge that this type of transaction presents — and it is precisely the type of case where specialist broker experience determines whether completion happens on time or slips.
Products Used in This Case
This transaction was delivered using Aura Capital's dual-security second charge bridging loan capability — structured as a receivership rescue with a first charge on the BTL and a second charge on the main residence. If you are facing receivership, a distressed second charge position, or need to clear a Together or similar lender quickly, speak to Aura Capital directly.
Related products that may also be relevant include our bridging loans for bad credit for borrowers with adverse credit histories, and our broader unregulated bridging finance range.
BTL in Receivership or a Distressed Second Charge to Clear?
Aura Capital structures dual-security bridging facilities across BTL and residential property — including receivership positions, Together redemptions, and adverse credit — with direct access to lenders who understand complex security structures. Same-day assessment available.
Get a QuoteThis case study has been anonymised to protect client confidentiality. Locations have been generalised. Outcomes vary depending on individual circumstances. This does not constitute financial or legal advice.
