Our Expertise
Second Charge
A second charge is a separate secured loan taken alongside your existing mortgage, leaving your current deal untouched.
Overview
What is second charge?
A second charge mortgage, sometimes called a secured loan, is borrowing secured against a property that already has a mortgage on it. The existing lender keeps the first charge, and the new lender takes a second charge behind it.
It is sometimes considered where a client wants to raise funds but does not want to disturb an existing mortgage, for example because of an attractive rate or an early repayment charge. Because the borrowing is secured on your home, it carries the same fundamental risk as a mortgage.
Who might this be suitable for?
- Homeowners with an existing deal they do not wish to disturb
- Clients facing significant early repayment charges
- Borrowers whose circumstances have changed since the first mortgage
- Clients raising funds for home improvements or other approved purposes
How Help to Lend can help
- 01We compare a second charge against a remortgage or further advance so the choice is an informed one.
- 02We set out total cost over the term, not just the monthly payment.
- 03We explain the risks of adding further secured borrowing to your home.
- 04We manage the application and the consent process with the first charge lender where required.
Assessment
What may lenders and providers consider?
Available equity
The combined borrowing against your property influences whether a second charge is possible.
Affordability
The new lender assesses your ability to meet both the first and second charge payments.
Term
Extending borrowing over a longer term may reduce monthly cost but increase total interest paid.
Priority of charges
The first charge lender is repaid first on a sale, which affects the second lender's pricing.
Criteria vary between providers and can change at any time. Nothing here confirms that a particular lender or insurer will accept an application.
The Process
How we work through it together.
- 01
Understand
We start with a conversation about your circumstances, plans and objectives.
- 02
Assess
We review your position, affordability and mortgage requirements in detail.
- 03
Recommend
We identify suitable mortgage and protection options and explain the reasoning.
- 04
Apply
We prepare and manage the application, liaising with the lender on your behalf.
- 05
Progress
We keep the case moving and keep you informed at every stage.
- 06
Complete
We support you through to completion and remain available afterwards.
FAQs
Frequently asked questions
Related
Related expertise
Capital Raising
Releasing funds from the equity held in your property.
Debt Consolidation
Combining borrowing into one payment, with the risks explained.
Remortgaging
Review your existing deal and consider the options available to you.
Adverse Credit
Advice for clients whose credit history needs a considered approach.
Speak to an adviser about your circumstances.
We'll explain the options clearly and tell you what to prepare, with no obligation.
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