Second Charge Mortgage Rates - October 2026
| Combined LTV | Typical Rate Range | Typical Max Loan |
|---|---|---|
| Up to 65% | 5.5–6.5% | £500,000 |
| 65–75% | 6.0–7.5% | £500,000 |
| 75–80% | 7.0–8.5% | £350,000 |
| 80–85% | 7.5–9.0% | £250,000 |
| 85–90% | 8.5–10%+ | £150,000 |
When a Second Charge Makes Sense
A second charge mortgage is particularly well-suited when you want to raise capital but are locked into your current mortgage with significant early repayment charges (ERCs). Rather than pay the ERC to remortgage, a second charge allows you to borrow the additional funds without touching your existing mortgage deal.
Common uses include home improvements, debt consolidation, business investment, helping a child with a house deposit, or covering a tax bill. The loan is secured against your property, so lenders can advance larger sums at lower rates than unsecured alternatives such as personal loans or credit cards.