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Second Mortgages

Loans from £20,000 to £1 million

  • All credit profiles considered
  • Help with any legal purpose
  • No surprises or hidden fees
  • Enquiring will not impact your credit score
  • Flexible terms from 3 to 30 years

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

Second 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.
second mortgages with tools in the shape of a house

What is a second mortgage?

 
 
 
 

A second mortgage, also known as a secured loan, is a funding option that uses a property as security. Usually, the property is your home, and the loan is taken out in addition to your current mortgage. 

Using a property as security can reduce the risk to lenders, meaning that they may be more relaxed about who they lend money to. Because of this, you may find that you have a better chance of being approved. It also means you may be able to borrow a larger amount and you may qualify for a lower interest rate, compared to other unsecured loans.

However, since they are secured against your property, failing to keep up with repayments puts your home at risk of repossession. Therefore, it's crucial to carefully assess affordability before applying.

These loans serve various purposes and can assist with any legal financial need. We specialise in providing fast second mortgages from a range of lenders nationwide, so we may be able to help you. 

Our loans range from £20,000 up to £1 million, with both fixed and variable interest options available.

man with question marks to show what a second mortgage is

Is a second mortgage a good idea?

 
 
 
 

It depends on your personal situation and what you need the money for. Common reasons for choosing this option include:

  • Re-mortgage rates are expensive - When raising extra finance some people choose to ’re-mortgage' to a new first mortgage provider. However, if interest rates offered by the new provider are higher than your existing mortgage, it may increase the total cost of borrowing. Arranging a second mortgage for the extra borrowing will allow you to leave your current mortgage in place and may work out to be a cheaper option.
  • Avoid early repayment charges – Some lenders have early repayment charges if you want to re-pay a loan earlier than agreed. These charges may also occur if you want to remortgage your property to raise extra funds. Arranging a second mortgage for just the extra borrowing means you will leave your existing mortgage in place and avoid any early repayment charges.
  • Unable to get unsecured funding – The criteria for this option is typically stricter, as an asset has not been used as security. For this reason, you may find it harder to qualify for this option, particularly if you have any complex circumstances. Second mortgage lenders can be more flexible, so they are often able to help where others cannot.
  • Borrowing money to fund large projects – With a second mortgage you are able to borrow from £20,000 up to £1 million. Therefore, if you have a large project that you want to undertake, this may be a good solution for you.

Before making any decisions, it is important that you think carefully about whether this is the right option for you. Speaking with a qualified mortgage advisor can help you understand if it is suitable and affordable.

checklist for getting a second mortgage

How do you apply for a second mortgage?

 
 
 
 

We know that taking out a loan can feel like a big task, so we have tried to make our process as smooth and simple for you as possible.

To make the process easy we have outlined some key steps you will need to take to successfully apply. These are:

  1. To start you need to decide how much money you would need to cover your plans and how long you would like repayments to be spread out by.
  2. After this you can either call our experts or use our online form above to make an enquiry.
  3. Using our panel of specialist lenders, we will look through over 600 products to find the right loan for your circumstances. We will go through this with you, so you can decide if it is the right option for your plans. If it is, we will work with you to get your application finalised.

Our experts always want to help you find the right type of funding you need to achieve your goals, so you can be assured we will always recommend the best solution available for your circumstances.

credit cards for how much can i borrow for a second mortgage

How much can I borrow on a second mortgage?

 
 
 
 

The amount of money you can borrow depends on your circumstances.

Factors that are taken into consideration include your credit profile, the level of equity in your property and your income.

These are considered to ensure that we find you an affordable loan, which ticks all of your boxes.

Our advisors are skilled in assessing affordability, and they will always go through this process with you. This means you can understand how the product meets your needs.

We have loans available ranging from £20,000 up to £1 million, so we have access to products that are suitable for most situations.

keys with house attached displaying second mortgages

What are the borrowing terms on a second mortgage?

 
 
 
 

Terms on this type of loan vary between different lenders. However, typically they have longer repayment periods available, compared to some other borrowing options. This may allow you to have some flexibility over your monthly payments.

Our team have access to a wide range of lenders and products, with terms ranging from 3 to 30 years. Therefore, it is possible that we have a product available that has a suitable monthly repayment term for you.

percent sign to show rates for second mortgages

What are the rates on second mortgages?

 
 
 
 

The interest rate that you will be able to get will depend on the amount of money you want to borrow, the repayment term, and some other factors such as your credit history and how much finance you can afford to repay.

As a second mortgage broker, we deal with many different lenders. This means we can provide competitive second mortgage rates, with both fixed and variable options available.

Our main goal is to get you a competitive interest rate for your circumstances, so we will do everything we can to achieve this.

house filling up for second mortgage borrowing amount

Does the amount of equity affect a second mortgage?

 
 
 
 

Yes, it does. Lenders will look at the amount of equity in your home when deciding how much they can lend to you. Equity is the difference between what you owe on your mortgage and the current value of your property.

In general, the more equity you have in the property, the more you will be able to borrow.

magnifying glass for second mortgage

Can I get a second mortgage?

 
 
 
 

As long as you own a property, you may be able to get a second mortgage. The main qualifying factor for this type of loan is that you own a home, as they are secured against a property.

Before taking out this solution, it is important that you weigh up all your options carefully, as your property could be at risk of repossession if you fail to repay.  

We can help you look for a 2nd mortgage and will do our very best to help you secure the right loan for your requirements.

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 Mortgages

 
 
 
 
  • What is the interest rate on a second mortgage?

    The interest rate you are eligible for will ultimately depend on your personal circumstances, including factors like your credit profile, how much income you have and the level of equity in your property.

    Interest rates can be fixed, variable or tracker. You may be able to get a lower interest rate compared to other borrowing options, because you have used your property as security against the loan.

  • What can it be used for?

    Your loan can be used for virtually any purpose, so long as it is legal.

    Many people choose to use these loans to consolidate their debts, in order to reduce their monthly outgoings.

    If you are thinking of consolidating existing borrowing, you should be aware that you might be extending the terms of the debt and increasing the total amount you repay

    Another common use of these loans is to raise funds for home improvement projects, or another big purchase such as a deposit for a second property.

  • What information is needed?

    You will need to speak with one of our mortgage advisors. If we can help and you are interested in the loan we recommend, you’ll need to sign and return some forms along with evidence to support your application. For example, providing proof of your income.

    All of our lenders have different criteria and processes, so other information may be needed later, but our advisors will talk this through with you.

  • How long can a second mortgage be taken out for?

    These loans allow you to borrow a large amount of money over a long or short repayment term.

    We have flexible terms available from 3 to 30 years. This gives you the chance to have a repayment period which suits your plans.

  • Can I get a second mortgage with bad credit?

    Even if you have a bad credit history, there may still be options available to you. Using a property you own as security reduces the financial risk to lenders and means they can be more flexible with their qualifying criteria.

    However, as with any type of finance, if you have bad credit your lender choices may be more limited and you may be charged a higher interest rate.

  • Is it possible to repay a second mortgage early?

    It is possible to repay your loan early.

    We have many products available, with and without early repayment charges. This means that if you do want to repay your loan early, we should be able to find you a product which allows you to do this without being charged. If you think you could be in a position where you could repay early, speak to our team and they will be able to advise you further.

  • Is a secured loan a second mortgage?

    Yes, they are the same thing, a loan secured against property.

  • Is a further advance the same as a second mortgage?

    A further advance is normally extra borrowing from your existing mortgage provider.

    Whereas, a second mortgage is a loan from another lender which does not involve your existing mortgage provider.

  • How do second mortgages work?

    These loans work in a similar way to other finance options, where you take out a certain amount of money and will repay it over a specified time frame. Each month you will have to make repayments which will include any interest charges you may have incurred.

    The main difference with these solutions is that you are borrowing against your house. Consequently, if you do not make your agreed monthly repayments, then your lender could repossess your property.

  • How hard is it to get a second mortgage?

    Getting this borrowing option can be quite simple. The main qualifying factor is that you will need to be a homeowner, as you will be borrowing against your home.

    When you apply, you do not even need to have a positive credit profile, as some lenders are still prepared to let you borrow if you have bad credit. Having bad credit can lower the options available to you, but it is still possible.

  • How can I take out a second mortgage?

    There are a few different ways you can take out this solution, including by going to a bank, lender or a broker. Each of these may offer different products and services, so it is important that you research each option carefully to determine where you may have the most success.

    If you have any complex circumstances you may find it easier to get help from a broker, as they have access to a range of different products.

  • What do I need to consider before taking out a second mortgage?

    Before you take out this funding option, it is important for you to consider a couple of factors first, including:

    - If you can afford the repayments.

    - How long you require the loan.

    - Whether you think you would be in a position to repay the loan early, in which case you may want to consider getting a product with no early repayment charges.

    - Whether you are comfortable to secure an additional mortgage against your property.

  • Are second mortgages risky?

    If you make your monthly repayments, this option can be quite safe.

    However, difficulties can arise if you fail to make your monthly repayments, as that could put your property at risk of repossession.

  • Is a second mortgage on property right for me?

    Determining whether this solution is right for you depends on your personal situation and requirements.

    Speaking with a mortgage advisor could help you to understand the different options that are available to you and therefore may give you a good steer on whether it is a suitable course of action to take.

Useful guides and blogs

 
 
 
 
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