Second Charge Mortgages

Need help or assistance finding the right service? Call us on 0121 309 0444

Introducing Second Charge Mortgages

A Second Charge Mortgage can help a variety of people for a wide range of purposes.

A Second Charge loan in essence is a second mortgage against a client’s property. This ranks behind their main mortgage, allowing them to use equity they have in the property as security for further finance.

  • Applicable for a wide range of funding scenarios
  • Offers a more bespoke lending solution

Buy-to-Let Second Charges

Whether your client is a landlord of one property or many, there are a range of Second Charge products which would allow them to secure a loan against a property they own but don’t live in. Buy-to-Let Second Charges are often used to help facilitate the purchase of another property or help with renovation costs.

  • Individual / Limited Company BTL’s Second Charges
  • Interest-only or repayment basis

Download Application Form

When should Second Charge Mortgage be considered?

Second Charge loans are now a viable option to an increased number of clients, for a wide range of circumstances.

If you have clients who:

  • Want to retain preferential terms for their existing mortgage.
  • Have an impaired credit history, failed credit score or are in an IVA.
  • Are older borrowers who are struggling to get credit.
  • Have complex financial affairs.
  • Are self-employed, have a short employment history or have recently changed jobs.

  • Need a higher loan to value rate than is otherwise available.
  • Want flexible repayment options.
  • Have recently started trading as a limited company or a sole trader.
  • Need a loan for reasons not usually permitted by other forms of finance.

What are acceptable loan purposes for Second Charges?

There isn’t a strict set criteria for what a Second Charge loan can or can’t be used for. In fact, one of the advantages of this type of loan is the flexibility it offers the borrower.

The purposes can be split into three categories:

Personal

  • Debt consolidation
  • Tax bills
  • Home improvements

Investment

  • Business purposes
  • Purchase or
    contribution towards
  • Buy-to-Let

Family

  • Weddings
  • School fees
  • Helping children/
    grandchildren financially

Remortgage or a Second Charge loan?

Whilst a remortgage or further advance on an existing property is often the first option considered, that doesn’t necessarily mean that (first charge) option is in the client’s best interests, nor might it be achievable. Typical scenarios when it may be appropriate to consider a Second Charge loan instead of a mortgage include:

  • If your client has an interest-only mortgage it
    may NOT be in their best interest to remortgage.
  • If your client has a tracker mortgage it may
    NOT be in their best interest to remortgage.
  • If your client has a mortgage with low fixed rates it
    may NOT be in their best interest to remortgage.
  • If your client’s credit rating has deteriorated it may
    NOT be in their best interest to remortgage.
  • If your client is in an Early Repayment Charge period it
    may NOT be in their best interest to remortgage.
  • If your client has a mortgage with a low variable rates
    it may NOT be in their best interest to remortgage.

Download Application Form