Second Charge Residential Mortgages

If you have a client who already has a property but is interested in accessing the equity with in it, they may be considering re-mortgaging or a second charge mortgage. There are pros to both and because clients’ needs and circumstances vary, carrying out an exercise to compare a capital raising re-mortgage with a second charge mortgage and a further advance, will enable your client to make the best short- and long-term decision.

For existing property owners

Only existing property owners are eligible for second charge mortgages and their reasons may vary widely, from wanting to raise capital for personal reasons, such as for education fees, wedding costs, debt consolidation, home improvements or to pay tax bills. Landlords may also wish to raise business capital against existing buy to let properties to upgrade or expand their property portfolios.

Flexible lender benefits

If your client is already on a good fixed-rate deal, a second charge mortgage is likely to be the better option, as opposed to re-mortgaging or a further advance. The lenders in our exclusive network are flexible and understand extraordinary client circumstances, what’s more, unlike re-mortgaging, second charge mortgages are not capped at £35,000 and completion is usually achieved faster.

Speed and efficiency

Established over many years, our assessment process has been refined so that we can quickly and efficiently assess your client’s needs and match them with suitable opportunities through our network of lenders. We can liaise directly with your client (which means the onus of responsibility from a compliance perspective sits with us), or we can consult with you while you deal directly with them.

Key features

Second Charge Residential Mortgages Summary

LTVUp to 100%.
Rates fromLowest rates starting from 6.59%.subject to status and application
TermMaximum term 40 years.
LocationUK coverage
Property types
  • Most property types accepted.
Client types
  • Already has an interest only mortgage.
  • Property owners approaching retirement.
  • Current mortgage has redemption penalties.
  • Earns income through multiple sources.
  • Existing home or property owners.
  • Investment or buy to let property owners.
  • Self-employed (including recently).
Client scenarios
  • Adverse credit history (wants to maintain current mortgage).
  • Capital release for business investment (i.e. buy to let) without re-mortgage time constraints.
  • Debt consolidation.
  • Education fees (school/university).
  • Equity transfer.
  • Existing low mortgage rate and looking to raise capital.
  • Further advance at a higher rate.
  • Holiday home purchases.
  • Home improvements and/or while living elsewhere.
  • Luxury purchases.
  • New mortgage separate from existing mortgage.
  • Pay off second charge mortgage earlier (than main mortgage).
  • Paying tax bills.
  • Raising business capital against buy to let property.
  • Raising deposit for further property purchase.
  • Re-mortgaging but wants to avoid ERC’s.
  • To avoid paying upfront fees.
  • To borrow into retirement.
  • To raise capital but keep existing low rate.
  • To receive advance sooner (than standard re-mortgage).
  • To retain interest-only main mortgage.
  • Unable to re-mortgage due to adverse credit history.
  • Weddings.


How long does a client need to have been self-employed?

Our lenders can look at clients who have been self-employed for a min of 1 year.

Can you lend to someone in a probation period?

Our lenders can consider applicants within a probation period and day one employment.

My client has had several late/missed payments on their credit cards in the past 12 months, will they be able to raise further finance?

The lenders we use do not penalise clients with recent adverse and are willing to take a view on all types of credit profiles.

Can you do a second charge app in joint names when the first charge/deeds are in single name?

Yes you can, without disturbing the first mortgage and the deeds of the property. Although some lenders insist upon an application in joint names if the client is married.

Can I have a drawdown facility for my home improvements?

Yes. As of January 2021 we now have a lender who can offer a drawdown facility.

Can you offer a second charge mortgage on a fixed rate with no ERC’s?

While some fixed products do carry an early redemption charge, we do have a large selection of fixed rates that are ERC free.

Do your lenders take into account the client’s debt to income ratio?

A couple do, but the majority do not. Therefore, we are often able to provide a second charge to consolidate debt where many high street lenders will not.

Does land registry need to have been updated before further borrowing can happen?

No, we have options that don’t require land registry to be updated.

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