Find the best Second Charge Mortgages

  - Borrow from £1,000 to £2,500,000 from the UK's largest range of second charge mortgage providers.
  • Borrow from £1,000 to £2,500,000
  • No credit check on enquiry
  • Options available for Defaults, Mortgage arrears and CCJs

Second Charge Mortgages - Compare second charge mortgage providers
Provider Headline Rate Max LTV Loan Amount Term Apply today
Min Max Min Max
 
. Masthaven Bank
3.84% 65% £10000 £500000 3.0 Years 35.0 Years Speak to a Broker .
. Representative APRC: 4.10% (Variable) .
. Prestige
3.89% 65% £10000 £2500000 3.0 Years 25.0 Years Speak to a Broker .
. Representative APRC: 4.00% (Variable) .
. Paragon Personal Finance
3.90% 65% £30000 £500000 5.0 Years 25.0 Years Speak to a Broker .
. Representative APRC: 4.10% (Variable) .
. Shawbrook
3.90% 65% £10000 £500000 3.0 Years 25.0 Years Speak to a Broker .
. Representative APRC: 4.10% (Variable) .
. Shawbrook
3.90% 65% £10000 £500000 3.0 Years 25.0 Years Speak to a Broker .
. Representative APRC: 4.10% (Variable) .
. United Trust Bank Ltd
4.05% 60% £10000 £125000 3.0 Years 30.0 Years Speak to a Broker .
. Representative APRC: 4.90% (Variable) .
. Masthaven Bank
4.09% 70% £10000 £500000 3.0 Years 35.0 Years Speak to a Broker .
. Representative APRC: 4.30% (Variable) .
. Paragon Personal Finance
4.10% 65% £30000 £500000 5.0 Years 25.0 Years Speak to a Broker .
. Representative APRC: 4.30% (Variable) .
. Shawbrook
4.10% 65% £10000 £100000 3.0 Years 25.0 Years Speak to a Broker .
. Representative APRC: 5.00% (Variable) .
. Shawbrook
4.10% 65% £10000 £100000 3.0 Years 25.0 Years Speak to a Broker .
. Representative APRC: 5.00% (Variable) .
Representative Example: Representative Example: If you borrow £33,000 over 14 years at a rate of 7.280% variable, you will pay 168 instalments of £349.88 per month and a total amount payable of £58,779.84. This includes the net loan, interest of £21,984.84, a broker fee of £3300.00 and a lender fee of £495.00. The overall cost for comparison is 9.6% APRC variable.

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AA’s first-time buyer mortgage enters chart

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The table above shows second charge mortgages in rate order. You can click on the column headings to reorder the table. Moneyfacts.co.uk shows whole of market secured loans information. We will refer you to Loans Warehouse, an independent credit broker authorised and regulated by the Financial Conduct Authority. They will source the most appropriate second charge mortgage based on your circumstances and any legal or contractual relationship will be with them.

Disclaimer: THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER LOAN SECURED ON IT. Loans are subject to status and valuation, secured on residential property and not available to those under 18. The APRC quoted will be offered to a majority of applicants. You may be offered a higher rate depending on your personal circumstances. All rates and terms may change without notice so please check with Loans Warehouse before undertaking any borrowing.

Moneyfacts.co.uk Limited is an independent credit broker not a lender and will receive a payment from Loans Warehouse where customers take a loan following a link to them from Moneyfacts.co.uk. This arrangement does not affect our independence.

 

On this page:

  1. What is a second charge mortgage?
  2. Why get a second charge mortgage?
  3. What is the difference between a second mortgage and a remortgage?
  4. Am I eligible for a second charge mortgage?

What is a second charge mortgage?

Second charge mortgages (sometimes just called 'second mortgages') are a type of secured loan that sits on top of your main (or 'first') mortgage. If you think of a normal residential mortgage as a secured loan on the property you are buying, then a second charge mortgage is a secured loan on the property you already have.

Second mortgages are commonly used as an alternative to remortgaging or taking out a personal loan as a method of raising money. However, if you get a second charge mortgage, you effectively have two mortgages to pay off, so it's important to understand the risks.

Why get a second charge mortgage?

Second charge mortgages are sometimes used as an alternative to remortgaging or getting a personal loan. There are many reasons why they may be used, including:

  • If your credit rating has decreased. Remortgaging in this case may cause you to pay more interest on your whole mortgage.
  • If your mortgage has an early repayment fee. Early repayment fees are usually a percentage-based fee so will depend on the size of your existing mortgage, but they could be thousands of pounds. It might work out cheaper to get a second mortgage instead.
  • If you are finding it hard to get approved for a personal loan or other form of unsecured borrowing.

What is the difference between a second mortgage and a remortgage?

Remortgaging to get a lump sum means taking out a new mortgage for the value of your current mortgage as well as the extra amount of cash you want to borrow. So, instead of having a mortgage and a loan, you just get one bigger mortgage. For some people, this makes budgeting more straightforward.

However, a second mortgage can be thought of as a homeowner loan that you have in addition to your existing mortgage. It uses the equity you have in your home as security, and essentially sits on top of your existing mortgage. While this means you will have two mortgages on your home, your first mortgage will always take precedence.

However, being unable to pay your second mortgage could also result in you losing the property, regardless of whether you manage to keep paying your 'first' mortgage. In this case, the first mortgage lender will be repaid first when the property is sold, and the second mortgage lender will then get their money back, assuming the property is still worth more than both mortgage amounts combined.

Am I eligible for a second charge mortgage?

In order to get a second charge mortgage, you do obviously need to be a homeowner, but you don't actually need to be living in the property you want to take the second mortgage out on.

Bad credit isn't necessarily a roadblock to getting a second charge mortgage either. Even if you have bad credit, you may still be able to get a second charge because the lender uses your existing home as security. However, you may be charged a higher rate than if you had a better credit rating.

Written by Leanne Macardle, last updated: 25/05/2018