Second Charge Mortgages

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.

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.

Speak with a consultant

Case Studies

Outstanding credit commitments and tax bill

A client came to us looking to raise £60,000 to consolidate numerous outstanding credit commitments. It also emerged that the client had a large, outstanding tax bill costing them £7,000 per month. We were able to organise a second charge mortgage to repay all sums owing to HMRC and consolidate all outstanding credit commitments for a total monthly payment of £2,235. This solution took stress away for our client and made everything more manageable. (September 2023)

Consultant: Rachael Peach

Financing home improvements

Our client wanted to borrow £50k in order to consolidate their outstanding credit commitments and make some home improvements. They had already been turned down for a further advance due to affordability. Their aim was to maintain similar outgoings and, after looking at a variety of options, we sourced a competitive second charge provider for our client. This allowed them to increase the value of their home and pay off all outstanding credit commitments at the same time. (August 2023)

Consultant: Rachael Peach

Unsecured debt

A client was exiting a 10-year fixed mortgage with a balance of £118k. Their property was valued at £700k but they had built up £127k of unsecured debt through home improvements. They were declined a further advance by their lender due to the large amount of debt. With monthly payments exceeding £3,000, they needed a more manageable solution. We arranged a second charge mortgage on a repayment basis over 22 years at a cost of £1,066 per month. The client was delighted to have a single, manageable payment with one provider. (June 2023)

Consultant: Rachael Peach

Second Charge Mortgages

Second charge mortgages (or secured loans) are secured against your existing property and allow you to use your equity to raise finance.

Why consider a second charge mortgage?

Case Studies

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