Second Charge Mortgages
Second charge mortgages let you raise capital against your property's equity without touching your existing mortgage - preserving a competitive first charge rate while accessing additional secured finance from 130+ specialist lenders.
When a second charge makes more sense than remortgaging
A second charge mortgage is the right product when remortgaging would cost more than it saves - particularly where your first charge carries a competitive fixed rate with early repayment charges that make a full remortgage uneconomic. Loan sizes from £10,000 to several million, LTV up to 85% combined across first and second charge, and repayment terms from 3 to 30 years.
Every reason to raise capital, handled
Home Improvements
Raise capital for extensions, conversions, or major renovations without remortgaging. The improved property value often supports a higher LTV than you might expect, and the second charge rate is typically competitive with a full remortgage rate.
Preserve Your First Charge Rate
If your existing mortgage is on a competitive fixed rate with a significant ERC, remortgaging is expensive. A second charge leaves the first charge completely unchanged while accessing additional equity at a separate second charge rate.
Debt Consolidation
Consolidating unsecured debt - credit cards, personal loans - into a second charge typically reduces monthly outgoings significantly. We model the total cost over the full term before recommending consolidation.
Business Capital
Business owners use a second charge on their residential property to raise working capital, fund a business acquisition, or provide additional security. Lenders assess the residential property as security rather than the business's trading history.
Adverse Credit Accepted
Specialist second charge lenders serve borrowers with CCJs, defaults, or missed payments where mainstream remortgage lenders would decline. Rate reflects the credit profile but access to equity is not blocked.
Self-Employed and Complex Income
Second charge lenders assess income using the same flexible criteria as specialist mortgage lenders. SA302 tax calculations, accountant's certificates, and complex income structures all handled by specialist panel lenders.
How it works
Share the capital requirement
Tell us the amount you need, your property value, existing mortgage balance, and purpose. We confirm the maximum second charge available and identify the most competitive lender for your profile.
Lender matching
We assess your income, credit profile, and property value against the full second charge lender panel before approaching any lender - ensuring the application is presented correctly the first time.
Application and valuation
We manage the application and coordinate the valuation. First charge lender consent is obtained where required as part of the process.
Drawdown
Second charge mortgages typically complete within 2 to 4 weeks. Simpler cases with clear income and straightforward credit can complete faster.
Looking to raise capital against your property?
Tell us the amount needed, your property value, and existing mortgage balance. We compare the full second charge panel and return the best available terms.
Frequently asked questions
What is the difference between a second charge mortgage and remortgaging?
A second charge mortgage sits alongside your existing first charge without disturbing it. Remortgaging replaces your existing mortgage with a new one. A second charge is more cost-effective when your first charge has a competitive rate or a high early repayment charge that would make remortgaging expensive.
How much can I borrow on a second charge mortgage?
Up to 85% of the property value combined across first and second charge. For a property worth £400,000 with a £200,000 existing mortgage (50% LTV), a second charge of up to £140,000 (bringing combined LTV to 85%) is within appetite for most specialist lenders.
Can I get a second charge mortgage with bad credit?
Yes. Specialist second charge lenders serve borrowers with CCJs, defaults, IVAs, and missed payment history. The rate reflects the credit profile but access is not blocked in the way it would be on a mainstream remortgage.
Will a second charge mortgage affect my existing mortgage?
Not directly - the first charge lender's terms do not change. However, the first charge lender may require notification that a second charge is being placed. We manage this process and ensure the first charge lender's consent is obtained where required.
How long does a second charge mortgage take to arrange?
2 to 4 weeks from application to drawdown for most second charge mortgages. The timeline is driven by the valuation and legal process rather than underwriting in most cases.
Explore related pages
Remortgage
Full remortgage comparison - when to switch and when to second charge.
Remortgage to Release Equity
Capital raising via remortgage as an alternative.
Second Charge Bridging
Short-term second charge for time-sensitive capital needs.
Debt Consolidation Remortgage
Consolidate debt into first charge as an alternative.