Raise funds without touching your existing mortgage
A second charge mortgage, also known as a secured loan, can release equity from your home while your current mortgage stays exactly as it is.
What is a second charge mortgage?
It is a separate loan secured against the equity in your home, alongside your existing first charge mortgage.
Your current mortgage remains unaffected and stays in place. The second charge is a separate mortgage using the equity in your property.
This can be useful if you do not want to lose a preferential rate on your existing mortgage, or would face heavy early repayment charges to leave a fixed rate early. Further borrowing can be used for any legitimate purpose.
Common reasons to borrow
People use second charge mortgages for all sorts of plans. These are some of the most common.
Home improvements
Extensions, a new kitchen or bathroom, or landscaping the garden.
Consolidating debts
Bring debts together into one monthly payment. This may increase the total you repay.
Business funding
A cash injection into your business.
Another property
A deposit for another property, such as a buy to let.
Second charge or remortgage?
Second charge mortgage
- Your existing mortgage and rate stay in place
- Can avoid early repayment charges on your current deal
- A separate monthly payment alongside your mortgage
- Secured against your home
Remortgage
- Replaces your existing mortgage with a new one
- May trigger early repayment charges on your current deal
- One monthly mortgage payment
- Secured against your home
Which is right depends on your circumstances. We compare both before we recommend anything.
Common questions
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No. Your existing mortgage stays in place on the same terms. The second charge is a separate loan with its own monthly payment.
It depends on the equity in your home, your income and your credit history. We will look at your circumstances and explain what may be possible.
A second charge mortgage is secured against your home, so your home may be repossessed if you do not keep up repayments. Think carefully before securing other debts against your home.