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Second Charge Mortgages

Loans from £20,000 to £1 million

  • All credit profiles considered.
  • 4.9 star rating on Feefo reviews.
  • Fixed rates, so you can budget. 
  • Over 35 years experience helping customers like you.
  • Get a decision in principle today

Loans are secured against property - your home may be repossessed if you do not keep up repayments.

Second Charge Mortgages
 
 
 
 

How much do you need to borrow?

To qualify you must:

be a UK resident and own a property
be aged 25-85 with a minimum income of £20,000

Sorry, we are unable to help you as Secured Loans are only available to Homeowners.
Minimum Loan Amount is £20,000

Or call us now on 0800 032 4646

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Loans are secured against property - Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.
We are a loan broker Authorised and Regulated by the Financial Conduct Authority. We do not offer mortgages from high street lenders, so you should apply there first. If you were rejected, we may be able to help you.
We do not offer mortgages from high street lenders, so you should apply there first. If you were rejected, we may be able to help you.
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What is a second charge mortgage?

 
 
 
 

A second charge mortgage is a type of loan, which is commonly used to help people consolidate debt, fund home improvements or any other large purchase you can think of.

The loan is taken out in addition to your existing mortgage, hence the term "second charge". It is also commonly known as a "secured loan" or "homeowner loan"

With this option, a property is taken as security against the loan. As a result, lenders are usually more relaxed with their criteria compared to other options. Therefore, it is a useful option to use if you have been rejected for an unsecured loan, remortgage or further advance.

It can also help those looking for larger loan sizes, as lenders are usually more comfortable lending bigger sums of money when a property is used as security. This is because they can repossess the property and get the money they have lent back if you fail to repay.

If you are looking to use this option to consolidate debt, it is important to be aware you may be extending the terms of the debt and increasing the total amount you repay.

Is a second charge mortgage right for me?

 
 
 
 

Depending on your personal situation and the reason for the loan, a second charge mortgage could be the right solution for you.

We have over 35 years’ experience helping customers get these solutions. Some of the common reasons you may look into this option include:

Declined for unsecured finance - Qualifying criteria for second charges is less strict as a property has been used as security against the loan. This means you may have a greater chance of being accepted compared to unsecured funding options.

You will face high early repayment charges by remortgaging - Many mortgage providers impose early repayment charges if you want to end your deal earlier than agreed. These can be expensive, and may make remortgaging a very unattractive option. 

Avoiding re-mortgaging - You may have a good deal on your current mortgage and don't want to lose it by remortgaging to raise additional funds. Arranging a second charge means your existing mortgage can be kept at its current rate, and you can raise the extra money you need.

When you need to borrow a larger amount of money - If you are completing a big project, a second charge mortgage may be the best option. This is because you can access bigger loan sizes than some other funding options.

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What are the borrowing terms on a second charge mortgage?

 
 
 
 

Repayment terms are flexible. You decide if you would prefer a longer or shorter repayment period, depending on your needs.

If you decide to spread your repayments over a longer amount of time, you will reduce your monthly payments. However, you may end up paying more in interest over the course of the loan.

Choosing a shorter repayment period will mean your monthly payments are higher, but you will pay less interest on your loan overall. 

It's important for you to weigh your options up carefully and consider what you would value most. Always make sure you can comfortably afford the solution you choose, as your property may be at risk of repossession if you fail to repay. 

We have repayment options ranging from 3 to 30 years, offering you a chance to find a repayment term that best suits your needs.

woman calculator loan

What are the interest rates for second charge mortgages?

 
 
 
 

Interest rates will vary based on many factors. These factors could include the sum of money you are looking to borrow, the repayment term and your credit score.

We take the time to understand your situation, so that we can find the best product we have available.

Since we are a mortgage broker, we have a range of different lenders on our panel. Through our panel, we have access to over 600 products, with a range of rates. This includes both fixed and variable options.

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How does the amount of equity I have in my house affect a second charge mortgage?

 
 
 
 

Lenders will take into consideration the amount of equity in your home when determining loan sizes.

If you have paid off a large sum of your mortgage, you will have more equity in your house. So if you have not paid off much of your mortgage, you will not have much equity in your home.

Ideally, you want to have as much equity in your property as possible, as this can unlock larger loan sizes and better terms.

How do I apply for a second charge mortgage?

 
 
 
 

We have made applying for this option as simple as possible. With the help of our knowledgeable team, we can help remove some of the stress that can come with applying for a loan.

➀ Make an enquiry – Call us or enquire through our online form. You will have to answer some questions about your application, so we can understand your circumstances. This will allow us to find you the best product we have available.

➁ Leave it to us – We will search our database to find the best solution to your unique situation.

➂ Receive your solution – We'll get in touch with a solution if we can find one that is suitable. Then it's up to you if you want to proceed. If you do, we'll help you through the rest of the process.

One of our expert team will contact you to talk through your application and the results of our findings. 

How do I enquire?

 
 
 
 

We want to make the process of applying as smooth as possible. Here are the main steps involved in our application process.

  • Enquire

    Step 1: Submit an enquiry

    Fill out our enquiry form online or call us to speak directly to one of our advisors.

  • Speak to the team

    Step 2: Speak to the team

    After reviewing your enquiry, one of our experts will call you to discuss your situation.

  • We will handle the rest

    Step 3: We'll handle the rest

    If we find you a product that fits your needs and you're happy, we'll take care of the rest for you.

  • Completion

    Step 4: Completion

    Once all of the paperwork is completed, you will receive your funds.

What our customers say about us

 
 
 
 
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"The Loan Engine dealt with my bridging loan, and I can honestly say that they were more proactive than me, which is saying something! I can't fault them at all - every time I rang, they knew exactly the latest position of my case, and were always helpful and polite. "
Mrs W, Bordon
22 Jan 2024
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"Great. Very helpful. Worked hard for us. Worth 5 stars. Use them anytime. "
Mr H, York
17 Jan 2024
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"They’re friendly and helpful start to finish sandip, emily thank you. From start to finish very helpful I will recommend to everyone thank you."
Mr S, Merthyr Tydfil
05 Jan 2024
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"Excellent service from start to finish. They went the extra mile when complications arose, big shout out to Thisara. I can’t recommend them enough!"
Mrs M, Leeds
12 Dec 2023
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Frequently Asked Questions - Second Charge Mortgages

 
 
 
 
  • Is it easy to get a second charge mortgage?

    People who are finding it difficult to qualify for unsecured loans may find it easier to get approved for a 2nd charge mortgage. By using a property as security, it reduces the risks to lenders, which means they may be more flexible with their criteria. As a result of this, you may be more likely to get approved.

  • What are the risks of a second charge mortgage?

    Similarly to your first mortgage, if you don’t keep up with the repayments, you risk having your property repossessed. It is important that you make sure you are comfortable with the repayment amount before you take out the loan, so that you can avoid any difficulties.

  • Can I sell my property with a second charge on it?

    If you sell your property you will likely have to pay off your second charge first. Some lenders may allow you to move the mortgage to a new property, but it's best to check with your provider before you make any plans.

    Our blog moving house with a loan secured on your property explains this in more detail.

  • Do I qualify for a second charge mortgage?

    Whether or not you qualify for a second charge mortgage will depend on several factors, including:

    • Property status - To qualify for this option you must have your own property. This will be used as security against the loan. 
    • Equity in your property: The amount of equity you have in your property will determine how much you can borrow.
    • Credit history: Your credit score and credit history will be considered by lenders to assess your ability to repay the loan.
    • Income: Lenders will consider your income to ensure you can afford the repayments. 
    • Existing debts and financial commitments: Lenders will also take into account any other outstanding debts or financial commitments you have, such as credit cards or other loans.

    It is important to note that lenders will have different eligibility criteria and requirements. Therefore, it is essential to compare different lenders and their conditions to determine if you qualify. 

    Our expert advisors will assess your application and check it against the full range of products from our specialist lenders to give you the best solution possible.

  • Is a second charge mortgage the same as a secured loan?

    Yes, a second charge mortgage is the same as a secured loan and homeowner loan.

  • What can I use a second charge mortgage for?

    These options can be used to help you fund a wide range of different purposes. Some of the most common uses are: 

Useful guides and blogs

 
 
 
 
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