Second Charge Mortgage Lenders

Our Second Charge Mortgage Service

Why choose us for a second mortgage

Fair Mortgages can provide you with a first class service if you are looking for a second charge mortgage on your home. 

Special features of what we offer include:

• Borrow from £10,000 up to £2.5m

• Access to leading market rates from 2nd charge mortgage lenders

• Access to exclusive loan deals not available on high street

• Fast turnaround - a property valuation may not be required

• We have lenders who will take into account previous defaults and missed payments 

• As part of our service we can review whether remortgaging is a better option for you in raising finance.

To investigate your second charge options call our specialist team on 0117 403 4474 or fill in our call back form. 

If you’re looking for finance, you may be wondering what a second charge mortgage, also known as a secured loan can offer you.

Second charge mortgage lenders

If you’re looking to borrow a larger sum of money but already have an existing mortgage you may be wondering what second charge mortgages are available to you.

To see a selection of lenders who might be able to offer you a 2nd charge mortgage, you can use our free mortgage calculator tool. You just need to select ‘Homeowner/Secured Loan’ from the selection menu. 

How second charge mortgages work

Second charge mortgages also known as homeowner loans can be secured against a property with which you have an existing mortgage you are still paying off. This is because they are secured under what is known as a ‘second charge’ basis while your original mortgage is done so under a ‘first charge’ basis.

What this essentially means is that if you failed to keep up with your repayments to a lender, either of them could go to court to order a repossession of your home, if this was to happen then once the property was sold the capital would first be used to repay your debt to the first charge lender as they have priority, what was left would then be used to repay the second charge lender up the value of the outstanding debt. 

Second charge mortgages are secured on the equity of your home of which you own, if your home is worth £300,000 and you have £50,000 left to pay on your mortgage this means you own equity of £250,000 which you may be able to take out a second charge loan on. 

Uses of second charge mortgages

Unsecured loans are often limited to a maximum of £25,000, so homeowners looking to borrow large sums of money may wish to consider a second charge mortgage; they can also be paid off over a longer period of time than personal loans.  They may also be more readily available than personal loans to borrowers who have poor credit scores.

The capital borrowed through a homeowner loan can be used for any legal, non-commercial purpose which could include home improvements, large purchases or debt consolidation. 

Things to consider

While second charge mortgages do present a way to borrow large sums of money, it is important to remember that they are secured against your home failure to keep up with your repayments can result in the repossession of your home.

There may be alternatives to a second charge mortgage such as remortgaging or personal loans.

If you have been thinking about using a second charge mortgage to consolidate other debt then consider that spreading your payments over a longer time frame may result in you repaying more than if you stuck to your existing arrangements even if it reduced your monthly repayments. 

Getting a second charge mortgage

Similar to applying for a standard mortgage a lender will want to assess the risk posed by lending to you as such during application they will want to carry out a professional valuation of the property and to assess your credit score and other specific financial circumstances.

There a wide range of lenders who offer second charge finance options, so it is worth shopping around thoroughly before you apply to try and make sure you are getting the best deal available, you may find it beneficial to speak to a professional with expert knowledge of the market who can offer you advice and help you find a product.

If you would like to speak to a Fair Mortgages adviser you can call us on 0117 403 4474 or request a call back for a free initial consultation.