Second Charge Loans

Mortgages

Mortgage advice that’s as unique as you are

A second charge loan can be a great way to raise capital against the equity in your home, whether it’s for home improvements, business purposes, or consolidating other borrowing, without having to disturb your existing mortgage arrangement. There are many different products to choose from, so it is important to get the solution that is most suitable for your needs.

To help you make the right decision we have put together our Top Tips for second charge loans:

How much can I borrow?
The amount you can raise will depend on the equity in your home and your ability to comfortably afford the additional repayments, alongside your existing mortgage, so it’s important to be realistic from the outset.

How does the loan to value work?
A second charge loan sits behind your existing mortgage, so lenders will look at the combined loan to value across both borrowings when deciding how much you can raise and at what rate.

Have you considered the extra costs?
Second charge loans typically come with arrangement fees, valuation fees and legal costs, and it’s worth weighing these against the cost of remortgaging or further advancing with your existing lender.

Is a second charge the right route?
Depending on your circumstances, it may be more cost effective to remortgage or arrange a further advance with your current lender, so we’ll always compare the options before recommending a second charge.

Existing mortgage terms matter.
If your current mortgage has attractive early repayment charges or a low fixed rate, a second charge loan can allow you to raise funds without losing that deal.

Know what you’re using the funds for.
Whether it’s home improvements, school fees, or consolidating existing borrowing, being clear on the purpose helps us match you with the right lender and product.

Remember a second charge loan is secured against your home, and there are lots of different products available, so it is important you get the right solution for you.