Get The Best Second Charge Mortgage Rates with Lending Expert
If you are considering a second charge mortgage or second charge loan, Lending Expert can help you find the best rates from the whole of the UK market.
With the option to borrow up to £500,000 repaid over 1 to 30 years, our price comparison table allows you to compare the rates and terms offered by the UK’s most competitive secured lenders.
Your home will be used as security and can usually receive funds in a matter of weeks. Simply compare the different loan options provided and click on ‘Check My Eligibility.’ You will be asked to complete a few questions online and partnered with the award-winning Loans Warehouse, we can provide you a personalised quote today!
What is a Second Charge Mortgage?
A second charge mortgage, commonly known as a ‘second mortgage’ or ‘second charge loan’ can be an effective way to raise funds without having to remortgage or leave your home.
Your home is used as a security, so it is also referred to as a secured loan, and this may be at risk of repossession if you cannot keep up with payments.
It is called the second charge because it is the second in line to be paid every month, with your main mortgage on your home acting as your first charge. So the LTV is likely to be lower than your first charge and the interest rates are a little higher, since the second charge mortgage lender is now second in line to receive payment.
- Raise money against the equity already paid into your home
- Continue to live in your home
- Repay over 1 to 30 years
A second charge mortgage means that you take a lump sum out of the mortgage which has already been paid on your home. You can use the equity of the home to secure the loan, meaning that you will have two mortgages on the house.
You can also only take out a mortgage on the equity which you have paid into the house, so for example a £200,000 house with £110,000 on the mortgage means that your second charge mortgage will only be available up to £90,000. You will need to discuss the equity with the lender before making any decision.
Why Take Out a Second Charge Mortgage?
Today, second charge loans are very popular as a way to pay for home improvements, to consolidate debts or pay for large purchases such as an event, wedding, gifting to family members or to start a business.
Certainly in the case of debt consolidation, if you have multiple loans, student debt and credit card bills outstanding, you can settle the accounts much quicker if you can pay them off immediately and stop the interest and fees from accruing over time. Be aware that you are moving unsecured debt into secured debt which could put your house at risk.
- Ideal for debt consolidation and large purchase such as weddings
- Can help those who are self-employed
- Can be more cost-effective and practical than remortgaging
Second charges can be popular for those who are unable to get approved for unsecured loans due a recent spell of bad credit or because they are self-employed. Or perhaps the rates are so favourable, it makes more economical sense than other traditional loans.
Equally, if you are looking to access some money, using a second charge loan can be more cost-effective than remortgaging. If you wish to remortgage within a certain timeframe, this can incur early repayment fees or you may find yourself paying more due to current rates or the increased value of your home. It is worth doing your homework beforehand and getting quotes from different lenders, but sometimes using a second charge mortgage is cheaper.
What is the Eligibility Criteria?
- UK only
- Must be a homeowner
- Must have equity in their home
- Can afford monthly repayments
- Employed and earning a regular income
- All credit histories considered
What Information Do I Need to Provide to Apply?
- Current equity in your home
- Value of your home
- Proof of address and ownership
- Proof of income
- Amount you wish to borrow and how long for
Can I Take Out a Second Charge Mortgage for Buy-to-Let or as a Contractor?
Yes, you can apply for a second charge mortgage for buy-to-let purposes or as a contractor. You may wish to take out a loan in order to build up or renovate another property to create an additional stream of income or as part of your job.
Our partners are willing to consider second charge loans for any purpose – simply submit your details in less than 5 minutes and get a provisional quote today!
How Much Can I Borrow?
Lending Expert works with second charge mortgage companies who offer £10,000 to £500,000 over 1 to 30 years – with the amount you can borrow based on your income, house valuation and equity in your current home.
When Should You Not Take Out a Second Charge Loan?
Using a second charge mortgage may not be appropriate for every type of debt consolidation. If you are taking lots of credit cards and converting them into a secured loan, this could put your property at risk if you have no foreseeable plan to repay them on time. Some types of debt may be perfect for consolidation such as paying off student debt or school fees.
If you are already struggling to pay off your first mortgage payments, adding further debt on top may not be advisable. This could put you under greater financial pressure and put your house at risk of repossession.
How Can Lending Expert Help Me Get a Second Charge Mortgage?
Lending Expert is proud to be working with the UK’s leading second charge mortgage companies and Loans Warehouse, voted the number 1 secured loans broker in the country.
Offering a free and no-obligation quote, we require a few basic details which can be completed using our online form.
We have helped hundreds of people find the best second charge deals for them – changing their lives and giving them important financial freedom.
With no fees for applying and no impact to your credit score, simply enter your details using our form provided and we can give you an indicative quote today!