Second charge mortgages.
A second charge mortgage is a separate loan secured against your home, sitting behind your existing mortgage. It can let you borrow without changing your current deal. Rates tend to be higher than a first mortgage, and the total cost depends on the term.
We can advise on your second charge ourselves, or introduce you to a specialist if that suits your situation better. There's no fee to you if we introduce you.
If you go ahead, the firm we introduce you to pays Lawes Financial a referral fee. You don’t pay it, and it doesn’t affect the advice you receive or the terms you’re offered.
Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.
Written by Nathan Lawes, independent mortgage broker. Figures sourced and dated. Last reviewed .Read them in this order.
Start with the basics, then compare it with a remortgage, then the details that apply to your case.
- 01 · Start hereWhat is a second charge mortgage?How it works, what it costs and the risks, in plain English.Read
- 02 · CompareSecond Charge Mortgage or Remortgage to Borrow More?The two main routes side by side, including early repayment charges.Read
- 03 · CompareCan you borrow against your home without remortgaging?Further advances, second charges and other options.Read
- 04 · PracticalitiesDo you need your mortgage lender’s permission for a second charge?What your first lender is told, and when consent comes up.Read
- 05 · A specific useDebt consolidation with a second charge: what the total cost actually looks likeWhy a lower monthly payment can mean paying more overall.Think carefully before securing other debts against your home.Read
What clients ask first.
MoneyHelper’s free guide to second charge mortgages explains how they work and what to check before you apply. You can check our authorisation on the FCA register.
Will a second charge affect my current mortgage?
Your existing mortgage stays as it is, with the same rate and term. The second charge is a separate loan with its own lender and its own monthly payment.
How much can I borrow?
It depends on the equity in your home, your income and your outgoings. Lenders look at the combined borrowing on both loans against the value of your property.
Is it more expensive than a remortgage?
Rates on second charges tend to be higher than on first mortgages. If your current deal has an early repayment charge, a second charge can still work out cheaper overall. The comparison depends on your figures.
How long does it take?
A second charge often completes in a few weeks, depending on the valuation, the lender and how quickly documents come together.
Where to go next
- ServiceSecond charge mortgages with LawesHow we work, what it costs, and when we introduce a specialist.
- CalculatorSee what repayments could look likeTry different amounts and terms. An illustration, not an offer.
- Talk it throughA 20-minute call with NathanNo obligation. We'll work out whether a second charge, a remortgage or something else fits.
Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.