SECOND CHARGE MORTGAGES

Finding the right secured loan for you

My Hero

Second charges, also known as secured loans, can be useful where you need additional funds at a competitive interest rate.

Your existing mortgage may be on a low lifetime tracker rate, or you may have an interest- only mortgage with an uncooperative lender, or you are simply tied in on your current deal.

They are called second charge mortgages because if you were to find yourself unable to pay your mortgage - or first charge mortgage - that would take priority over the secured loan.

About secured loans

A second charge mortgage can offer more flexibility. The purpose of the secured loan can be varied, it can be used for:

● Business purposes
● Tax bills
● Debt consolidation
● Home improvements

If you wanted to invest in a buy-to-let property you would need to take out a buy-to-let mortgage, and for some types of business finance you may be better off with a commercial loan.

Should I get a second charge mortgage?

Second charge mortgages have become more mainstream and a more acceptable way of borrowing.

As more lenders have started to offer them, the fees and interest rates have reduced.

Second charge lenders will charge slightly higher rates because they are next, rather than first, in the queue, should you default on your mortgage.

But second charge or secured loan lenders tend to underwrite their mortgage lending on a bespoke basis. This means lenders are often willing to go the extra mile.

Second charge mortgages and independent mortgage advice

As an independent mortgage adviser we provide advice on all types of mortgages.

The Mortgage Credit Directive introduced in 2016 meant independent mortgage advisers have to provide full advice on both first charge and second charge mortgages.

Even before the directive this was something we offered, as we have excellent and long-standing relationships with specialist and mainstream second charge lenders.

We are authorised by the FCA [link to register] to give advice on second charge mortgages.

"The advice and recommendations provided were great and really helped us to secure a property and get the mortgage that suited us."

Mrs Z Dillon, Farnborough

See our case studies section for examples where we have assisted our clients. As always, if you do have an enquiry, do not hesitate to contact us.

RELATED CONTENT

First-time buyers


Speed is of the essence in the purchase process and quite often can be a determinant factor for you in obtaining your dream property.


EXPLORE

Remortgaging


Is now the best time to remortgage? Mortgage interest rates are still historically very competitive and now may be the best time to assess...


EXPLORE

Buy-to-let


Here at Independent James we can provide you with the right advice to maximise your profit potential in a tight rental market. It is well...


EXPLORE

Offset


Offset Mortgages allow you to repay your mortgage in a more flexible manner. In essence, mortgage interest is not payable on the sum...


EXPLORE

Creatives


We realise the varied nature of your work, and more importantly working hours, can make the simplest of tasks difficult to...


EXPLORE

Contractors


In recent years there has been a shift towards people contracting, with the format allowing flexible working arrangements and often...


EXPLORE

Second charge mortgages


As a result of the European Mortgage Directive (implemented on the 21st March 2016) to call ourselves ‘Independent’...


EXPLORE

Commercial


As our clients have grown with us and are looking at various forms of commercial funding, our expertise has also developed in these...


EXPLORE

Green & Ethical Mortgages


With the energy crisis and global warming front and centre of people's minds, more banks and building societies are now...


EXPLORE



Top