Second Charge Mortgages

Are you aware of second charge mortgages?

Second charge mortgages are ideal for customers looking to capital raise by releasing equity from their existing residential property. Our second charge loans can be arranged quickly without affecting your existing mortgage.

In years gone by, brokers and consumers resisted taking one because of the lack of regulation and transparency. That’s all changed with the Financial Conduct Authority (FCA) now managing all regulatory control. Consumers are protected just you would be if were taking out a personal loan.

Second charge mortgages are often this because they are a secured loan used to release equity, instead of remortgaging or taking out a personal loan. Second charge mortgages use the borrower’s home as security. It is named a “second charge mortgage” because you will be paying this off alongside your existing mortgage. Whilst it is termed a “mortgage”, it should be seen as more like a personal loan which is secured against your property; hence the two payments.

Second charge mortgages can be used for all manner of uses, for example, clearing debts, consolidating your cash position, refurbishments of your property, investing in your business. In essence, it doesn’t have to go towards the property you are securing it against.

Kieran Hayes here outlines the benefits of second charge mortgages

Another benefit of the second charge mortgage is that if you have a little debt, this will not be held against you, unlike when calculating a mortgage. The second charge mortgage is calculated against the equity in your property.  

How do second charge mortgages work in practice? Watch our helpful case study

Remortgages are still available, however, these work where you pay back your existing mortgage and have just one payment. You can still raise finance, but with a remortgage, you might have to pay an early settlement or redemption on the existing mortgage. This can run into many thousands of pounds. Do read the small print on your existing mortgage before proceeding in this direction. To read more about remortgaging, please click here

What’s very good news for you is that we have preferential relationships with all the major lenders for mortgages, remortgages and second charge mortgages. To discuss your options or book a no obligation, free consultation please call us on 020 3126 4898 or email: