A second charge mortgage, also known as secured loan, is secured on a home or investment property. They are called second charges because they have secondary priority behind your first mortgage when it comes to repaying the loan. Often used as an alternative to remortgaging, they are a great way to raise funds for a wide range of purposes. These include debt consolidation, home improvements, school fees and much more.

Second charges can often take a lot less time to complete than a standard remortgage. Second charge lending is deemed more generous than mainstream mortgage lending, with some providers allowing total borrowing of up to six times income. You will need to approach the first charge lender for permission to allow a second charge.

Areas we can help:

• Debt consolidation
• Home improvements
• Pay off existing loans
• Avoid early repayment charges
• Raise capital on buy to let property
• Raising funds for business investments
• Purchasing abroad
• Onward property purchases
• School fees
• Tax bills
• Transfer of equity
• Weddings

Why choose it?

A second charge mortgage could be beneficial for the following reasons:

• Change in credit rating – A drop in credit rating could mean you would have to pay more interest on your clients whole mortgage (as opposed to just the additional borrowing). Taking out a second mortgage for the extra borrowing and leaving the first mortgage untouched, could save your client money
• Early repayment charge – If your clients mortgage is subject to a high early repayment charge, you could save them money by taking out a second charge instead of remortgaging. We will always investigate additional borrowing as a cheaper alternative
• Time – Second charges can often take a lot less time to complete than a standard remortgage

Criteria

For loans secured on residential properties:

• Lending in England, Scotland, Wales and Northern Ireland
• Up to 90% LTV
• Loans from £5k To £2.5m (more by referral)

 

For loans secured on Buy-to-Let properties:

• Lending in England, Scotland, Wales and Northern Ireland
• Up to 80% LTV
• Loans from £5k to £1m (more by referral)