Detached house

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
  • 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
White bungalow

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.

Case Studies

Second charge mortgage for land purchase

A client came to us wishing to purchase a piece of land adjacent to their property to make their garden larger. A further advance with a high street bank had been declined due to affordability, plus they had unsecured debt on credit cards for which the monthly repayments were increasing. We were able to arrange a second charge mortgage to purchase the additional land and consolidate their unsecured debt. Their monthly repayments were reduced and the land purchase could go ahead.  (June 2024)

Consultant: Rachael Peach

Missing employment history

Our client wanted to borrow funds to clear their credit cards and to make some home improvements, but they had been declined for a further advance with their existing lender due to their employment history and the amount of debt in the background. Our client didn’t have the 12 months’ employment history that most lenders expect. However, we were able to source a lender who was happy with their employment and was able to offer a deal that saved them £111 per month and provided sufficient home improvement funds. (January 2024)

Consultant: Rachael Peach  

Rising mortgage repayments and debt consolidation

Our clients were looking to consolidate debt that resulted from taking out credit during Covid. They had already been declined for a further advance due to affordability and were concerned as their mortgage payments looked set to double in the near future. We were able to arrange a second charge mortgage to consolidate their debt, reducing their monthly payments by £556.63 per month and giving them a bit of cushioning if their mortgage repayments do increase as anticipated next year. (October 2023)

Consultant: Rachael Peach

Contact Details

Trading office: Building Eight, Watchmoor Park, Camberley, Surrey, GU15 3YL

Registered in England No. 5695802

Tel: 01276 601040 or 0800 170 1888