Explore Secured Loans

What is a second charge mortgage?

A second charge mortgage is a loan that is secured against the equity in your home. It is based on the difference between the value of your home and the amount you have left on your current mortgage.

How do you qualify?

You need to demonstrate how much equity you have accumulated in your property so far and that you’ll be able to show how you will meet the repayments on both mortgages.

Your current lender will need to approve your second mortgage application. Not sure how to move forward? Talk to us. We have a team of friendly mortgage experts to help you.

How much can I borrow?

This depends on your income and the amount of equity in your home. We will need to do a full affordability assessment. However, income multiples can be higher than that of a typical mortgage.

The minimum amount is usually £1,000.

Key features

  • Up to 95% Loan to Value
  • Interest Only Options
  • Higher Income Multiples
  • Flexible Underwriting

Why might you need a second charge mortgage?

  • Remortgaging isn’t an option due to age
  • You do not meet mainstream lenders affordability requirements
  • There is not enough equity in your property
  • You have early repayment charges
  • You have poor credit

What can it be used for?

  • Home Improvements
  • Debt Consolidation
  • Business Use & Tax builds
  • Purchase another property (or use for deposit)
  • Completing a Project
  • Holiday Homes
  • Weddings & Luxury Purchases

Book an appointment with our secured loan expert today!

Lendese Commercial Limited is an appointed Representative of Commercial Finance Brokers UK Limited which are authorised and regulated by the Financial Conduct Authority.

Talk to us!

Speak to an advisor



    Common questions from our customers about second charge mortgages.

    Lendese have access to thousands of mortgage deals, including many exclusive deals not available elsewhere, along with specialist lenders who can assist with unique situations.


    A second charge mortgage enables you to borrow money whilst leaving your current mortgage in place. 

    Your main mortgage provider will retain a first charge, meaning the new additional lender will gain a second charge.

    It uses the equity in your home as collateral. It is a great way to access further funds without having to remortgage.

    Second charge mortgages will usually be at a higher rate as the lender is entitled to their money after the first charge holder. 

    However, second charge loans may be more flexible and allow you to borrow more.

    Some of the befits of a second charge secured loan are;

    • Achieve approval even with a low credit score – these are generally not mainstream lenders so can be more flexible.
    • Avoid early repayment charges; You may be tied into your current mortgage so a remortgage isnt an option when extra funds are needed.
    • Home Improvement & Debt Consolidation; Affordability criteria with second charges might make it easier to borrow.
    • Handle big expenses. You could also use the money to pay for significant life events such as a wedding, honeymoon or a luxury family holiday. You may even wish to invest in starting a new business.

    Generally the rates and fees are slightly higher with second charges. However they provide an invaluable solution for unique situations or borrowers who arent able to fit standard mortgage criteria.

    If your credit score is already in a secure, reliable position before applying for a second charge mortgage, then it should remain similar throughout the loan. However, if you have struggled to keep up with repayments in the past, then this extra loan against you could negatively impact your credit.

    We are happy to review your credit profile before progressing any type of mortgage so that you have peace of mind and know where you stand.