Second Charge Mortgages

What Is a Second Charge Mortgage?

A second charge mortgage (also called a secured loan) sits behind your existing first charge mortgage. It's secured against your property but doesn't replace your current mortgage.

This can be useful when you've built up equity and need to raise capital, but remortgaging would be costly or impractical. Second charges typically have different eligibility criteria and can accommodate more complex situations.

When Does This Make Sense?

• You're on a competitive rate you don't want to lose
• Early repayment charges would make remortgaging expensive
• You need funds for property renovation or improvement
• You want to consolidate debts into one lower payment
• Your circumstances have changed (self-employed, retired)
• You need capital for business purposes

Important Considerations

Second charge mortgages are regulated and require careful consideration. Key points to understand:

• Your home is at risk if you fail to make payments
• Total borrowing across both mortgages matters for affordability
• We'll always compare to remortgaging to find the best option
• Independent legal advice may be recommended