Second Charge Mortgages.

  • A second charge mortgage is a secured loan taken against a property where an existing mortgage remains in place.


  • It may be considered where a homeowner wants to raise funds but does not want to disturb their current mortgage.

[ PROBLEM ]

  • Missed payments

  • Defaults

  • CCJs

  • Payday loan history

  • Debt management plans

  • IVA history

  • Bankruptcy history

  • Low credit score

  • Thin credit file

  • High unsecured borrowing

  • Previous mortgage decline

What is a second charge mortgage?

  • A second charge mortgage is secured against your property behind your existing first mortgage.


  • Your current mortgage remains in place, and the second charge lender takes a separate legal charge over the property.


  • Because the loan is secured, your home may be at risk if repayments are not maintained.

When might a second charge mortgage be considered?

  • Your current mortgage rate is worth keeping

  • Remortgaging would trigger an early repayment charge

  • You need to raise additional funds

  • Your existing lender will not offer a further advance

  • Your income or credit profile has changed

  • You want to keep your first mortgage separate

  • You are considering debt consolidation

  • You need funds for home improvements or another acceptable purpose

Second charge mortgage VS remortgage

  • A remortgage replaces your existing mortgage with a new one. A second charge mortgage sits alongside your existing mortgage.


  • The right option depends on interest rates, fees, early repayment charges, loan amount, affordability, credit profile and future plans.

How we help?

  • Mortgage Centre reviews your existing mortgage, borrowing requirement, credit profile, affordability and property position before a lender approach is considered.


  • This can help assess whether a second charge mortgage, remortgage, further advance or another option may be more suitable.

[ FAQs ]

  1. Is a second charge mortgage the same as a secured loan?

    They are closely related. A second charge mortgage is a loan secured against your property in addition to your existing mortgage.

  2. Can I get a second charge mortgage with bad credit?

    Possibly. Some lenders may consider adverse credit, but this depends on the case, affordability, property value and current mortgage position.

  3. Is a second charge cheaper than remortgaging?

    Not always. It depends on the rates, fees, early repayment charges and amount borrowed.

  4. Can I use a second charge mortgage for debt consolidation

    Possibly, but this requires careful advice. Securing unsecured debts against your home can increase risk and may increase the total amount repaid over time.

[ WHAT DO YOU NEED ]

Personal

Passport

Proof of address

Credit report

Income

Payslips & P60



SA302s & Accounts



Bank statements

Property

Memorandum of Sale

Estate agent details

Solicitor details

Your Questions, Answered

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[ GLOSSARY ]

  • HMO: House in Multiple Occupation

  • SPV: Special Purpose Vehicle

  • IVA: Individual Voluntary Arrangement

  • DMP: Debt Management Plan

  • CCJ: County Court Judgment

[ DISCLAIMER ]

Your home may be repossessed if you do not keep up repayments on your mortgage.