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
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

Urgent house repairs and monthly outgoings

A client came to us seeking urgent funding to repair their roof before winter. This required immediate access to funds in order to carry out the necessary works. However, the client was concerned about a potentially large increase in their monthly outgoings. Not only were we able to release funds for the roof repairs, but we also consolidated three loans that the client had outstanding. By doing this we actually reduced their monthly outgoings and helped complete the urgent house repairs, giving them peace of mind. (September 2024)

Consultant: Rachael Peach

Debt consolidation and rising mortgage payments

Our clients had been declined by their lender for a further advance due to affordability. With substantial debt resulting from furlough during the pandemic and mortgage payments set to increase in the near future, they were very keen to consolidate their debt and be in a position to switch to a better mortgage rate. We were able to help them by arranging a second charge mortgage to consolidate their debt. This solution enabled them to save over £550 per month on repayments, placing their finances in a much better position. (August 2024)

Consultant: Rachael Peach

Second charge mortgage for inherited property

A client approached us seeking a second charge mortgage to buy out their siblings shares of a property they had inherited together. Their goal was to hold the property solely in their name so that they could rent it out and manage it independently. To facilitate this, we are arranging the second charge against their current residential property. This move allows the client to consolidate ownership and pursue their plans for the inherited property while using their existing home as security for the mortgage. (July 2024)

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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