Second Charge Mortgages

A second charge mortgage (also known as a secured loan against property or second charge on property) is a mortgage that’s secured against your home, so you need to own your own property or hold a mortgage to be eligible.

Second charge loans can be used for many different purposes. Types of loans include:

• Secured home improvement loans
• Secured debt consolidation loans
• or you can get a second charge mortgage to buy a new car!

Once the second charge mortgage is agreed, the money will be paid into your bank account and it’s yours to spend.

You’ll then start making your lower monthly payment to the lender until it’s paid off.

A second charge mortgage may enable you to access the cash that is tied up in the value of your home without needing to re-mortgage or extend the term of your current mortgage deal.

If you’ve got good credit, a second charge mortgage should be cheaper compared to an unsecured loan.

If you’ve got bad credit, you’re more likely to be accepted for a second charge mortgage because the lenders have your home as security.

You can usually borrow larger amounts of money, and spread the payments over a longer amount of time, compared to an unsecured loan.

To be eligible for a second charge mortgage, you’ll usually need to be a homeowner. This is because the lender will secure the loan against the equity in your property.

In other words, it’s based on the difference between the current value of your property and the amount you owe on your mortgage. So, if you have little or no equity in your home, you may not be eligible for a secured loan.

The amount you can borrow will depend on how much equity you have in your property, how much you can afford to repay each month and your credit rating.

Yes, you can. In fact, a second charge mortgage may be easier to get hold of than other types of loan if you have a bad credit rating.

And, if you keep up with the repayments on a second charge mortgage, you can actually repair your credit rating over time.

Yes, you can. In fact, a second charge mortgage may be easier to obtain than other types of loan if you are self-employed.

No, getting a quote will not impact your credit score.

Whatever type of loan you’re looking for, or whatever part of the loan process you’re at, a broker can help. It’s not just about finding the lowest interest rate — there are other things to consider. For example, if you’re thinking about starting a family, flexibility is an important feature. Or if you want to renovate, easy access to equity can help.  If you’re looking for a house improvement loan this may be the solution. With so many products, you have so many choices.

Once we agree on the right second charge mortgage for you, we take care of the application and get everything in place for the approval process, then see it through to completion. We do the hard work for you.

Yes, second charge mortgages/secured loans are regulated by the Financial Conduct Authority (FCA) so you should always make sure that you are working with an FCA approved broker. Newable Commercial Finance Ltd is authorised and regulated by the Financial Conduct Authority and is entered on the Financial Services Register (FRN 723703).