Second Charge Mortgages

Additional finance option for homeowners

Second charge mortgages (or secured loans) are secured against your existing property and allow you to use your equity to raise finance. It can be a loan of anything from £20,000 upwards, depending on your income and the amount of equity you have in your properties.

Person calculating costs

A second charge mortgage is an FCA-regulated product with the same paperwork, contract and process as a first-charge mortgage.

There are a wide range of acceptable reasons for capital raising via a second charge mortgage including for business purposes, debt consolidation, tax bills, weddings, school fees and property purchase.

Why consider a second charge mortgage?

  • To capital raise from existing residential or buy to let properties
  • In order to keep a competitive rate on your first charge mortgage which would be lost if you remortgaged
  • To keep your existing first charge mortgage as an Interest Only mortgage
  • To avoid high Early Repayment Charges on a current mortgage
  • If your credit status has changed
  • When funds are needed quickly
  • Maybe a remortgage or further advance has been declined
  • If you are stuck in debt management or you have a large amount of unsecured debt in the background
  • You have had changes to your income/employment or if COVID has affected your self-employed income over the past few years
  • You want to raise funds for business use or repay a tax bill
  • You are looking for a higher income multiple, are failing on affordability or are wanting to use projected income if self-employed

It’s important to think carefully before securing other debts against your home, so we recommend a free consultation with our second-charge team to find out whether this could be the right option for you.