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
 
. Paragon Personal Finance
3.65% 65% £30000 £500000 5.0 Years 25.0 Years Speak to a Broker .
. Representative APRC: 3.90% (Variable) .
. Masthaven Bank
3.74% 65% £10000 £500000 3.0 Years 35.0 Years Speak to a Broker .
. Representative APRC: 4.00% (Variable) .
. Paragon Personal Finance
3.85% 65% £30000 £500000 5.0 Years 25.0 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% 70% £20000 £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
3.90% 60% £10000 £125000 3.0 Years 30.0 Years Speak to a Broker .
. Representative APRC: 4.70% (Variable) .
. Masthaven Bank
3.94% 65% £10000 £500000 3.0 Years 35.0 Years Speak to a Broker .
. Representative APRC: 4.20% (Variable) .
. Masthaven Bank
4.04% 65% £10000 £500000 3.0 Years 35.0 Years Speak to a Broker .
. Representative APRC: 4.30% (Variable) .
Representative Example: Representative Example: If you borrow £34,000 over 14 years at a rate of 6.550% variable, you will pay 168 instalments of £345.15 per month and a total amount payable of £57,985.20. This includes the net loan, interest of £20,090.20, a broker fee of £3400.00 and a lender fee of £495.00. The overall cost for comparison is 8.7% APRC variable.

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Two-year mortgage rate at 21-month high
Two-year mortgage rate at 21-month high

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Home purchases see highest February since 2007
Home purchases see highest February since 2007

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Mortgage Freedom Day has come early
Mortgage Freedom Day has come early

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Higher-LTV mortgage rates still decreasing
Higher-LTV mortgage rates still decreasing

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Two-year fixed mortgage rate at 19-month high
Two-year fixed mortgage rate at 19-month high

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Mortgage valuations are not in-depth surveys
Mortgage valuations are not in-depth surveys

Mortgage valuations shouldn’t be confused with a property survey. You should consider having a surve... More

You and your mortgage
You and your mortgage

What is your relationship with your mortgage? Are you repaying it off as quickly as you can – are yo... More

West Brom’s 2-year FTB mortgage now number 2
West Brom’s 2-year FTB mortgage now number 2

West Brom BS has reduced the rate on its two-year fixed first-time buyer (FTB) mortgage by 0.15%, wh... More

Virgin Money improves three-year mortgage
Virgin Money improves three-year mortgage

Virgin Money has reduced the rate on one of its three-year mortgages by 0.02%. This deal offers the ... More

Tesco’s FTB mortgage rockets into first place
Tesco’s FTB mortgage rockets into first place

Tesco Bank has reduced selected mortgage rates, which sees its five-year fixed first-time buyer (FTB... More

Hinckley & Rugby tops discounted mortgage chart
Hinckley & Rugby tops discounted mortgage chart

Hinckley & Rugby BS has reduced the rate on its discounted variable rate mortgage by 0.25%, as a res... More

Barclays’ 5yr fixed mortgage improved
Barclays’ 5yr fixed mortgage improved

Barclays Mortgage has reduced the rate on its five-year fixed deal by 0.20%, making it the lowest of... More

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.

 

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.