Applying for a Second Charge Mortgage is easy. Simply complete the quick enquiry form below and our team will search over 400 loans with exclusive rates for homeowners.
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Our advisors are available Monday-Friday 9am to 8pm and Saturday 9am-3pm, giving you plenty of opportunity to seek a quick overview of what your mortgage deal could potentially look like.
You will be matched to an advisor who will answer your questions, queries and provide quality advice for your personal circumstances and the specific mortgage product suited to you.
A second charge mortgage is a type of secure borrowing against the equity owned within a property. Technically when a second charge mortgage is in place there are two separate mortgages secured against one property.
A second charge mortgage can be obtained even if the applicant does not reside in the property, and therefore buy to let properties may be eligible for this type of financial product.
As with standard mortgages and other borrowing, a lender will tailor an offer depending on the personal circumstances of the applicant. The amount that can be borrowed on a second charge mortgage will depend on:
Typically, lending is capped at 75% loan to value (LTV) of the property value for a buy to let mortgage however there are differences between lenders.
Some lenders may be prepared to offer second charge mortgages on small values as little as £10,000 however should your requirements be needing finance for less than £25,000 it may be worth comparing the terms against a personal unsecured loan.
Whereas there are a handful of mortgage lenders that may even offer 100% of the property’s value with a second charge mortgage depending on the applicant’s personal circumstances.
The total amount that can be offered on a second charge mortgage will likely vary between lenders and therefore expert financial advisers can assist with navigating the market as they have in-depth knowledge of lenders terms and recent borrowing.
As with most financial options, there will be various factors involved and considerations to evaluate including:
Most property owners can apply for a second charge buy to let mortgage and their application will be reviewed and analysed against the lender’s borrowing criteria and affordability checks.
The main criteria that a lender will be interested in is the level of equity available within the property for the loan to be secured against, and the income of the applicant to cover the repayments.
As we have briefly mentioned, an applicant does not need to live in the property to apply for a second charge mortgage, and in some circumstances, even further borrowing can be made such as a third or fourth mortgage on the same property.
Although on face value, the second charge buy to let mortgages are available for all, it is highly recommended that specialised financial advice is obtained before making an application to ensure that a second charge mortgage is the most cost-effective approach to achieve the objectives and that an application is likely to be accepted.
The interest rates on buy-to-let second charge mortgages are typically lower than other forms of finance and for this reason, are a financially wise option for landlords looking for a loan.
The exact rate you will be able to secure depends on a variety of factors. For example, borrowers with a healthy credit history borrowing an amount regarded as affordable at a low loan-to-value (LTV) will usually be offered at extremely competitive rates as you will be regarded as a low-risk applicant.
If you have a poor credit history or a high LTV, then the rates offered to you are likely to be high to pay back for the added risk for the lender.
Still, even those with poor credit can attain a loan from specialist lenders who specialise in receiving applications from individuals with bad credit. Get in touch with us today, for a free no-obligation consultation with one of our expert advisers.
Our advisers are used to working with customers with poor credit history and can help you navigate the entire UK loan market to find a suitable lender with the most competitive terms for your circumstances.
Just like a regular mortgage, you submit an application to a lender via a broker or directly. The next steps involve the lender assessing your application and looking into key details such as affordability, credit history etc.
Can you use a new lender?
Yes! Many people assume that you must take a second charge mortgage out with your current mortgage provider, but you don’t. It can be much more advantageous to search the whole market to find a lender offering the most competitive rates, which our expert advisers will be more than happy to help you with.
We would just like to thank you for all the hard work and time you have spend over the last few months arranging us a new mortgage deal. We will save so much. We are very thankful for securing us our first mortgage and enabling us to buy our lovely family home we will be forever grateful. Thank you for all the phone calls, emails and answering any questions I had when re mortgaging, you made the process quick and easy.
Thanks, the move went well and we are now surrounded by boxes but excited about starting the next chapter of our life in the new house. Marianne and I would like to say a huge thanks to you for your help in arranging this mortgage and will be recommending you to all our friends. It really has been a lot easier having professionals like yourselves managing the process.
Just want to say a massive thank you for helping us buy our dream home, you made the whole mortgage application stress free! We got a brilliant deal, which was fully explained and we were kept informed throughout every step of the mortgage application journey. Whilst the mortgage application was being approved, they also sorted our insurance policies and completed a re-mortgage on another property.. absolutely brilliant service!
Your team have gone above and beyond to help me and my partner get our first house. I am so impressed by how helpful and understanding they have been throughout the process. I spoke with you on the off chance during my search for a mortgage and less than a week later we had an offer accepted on a house. Me and my partner were pretty clueless when it came to the mortgage process but thanks to the team we have now completed on our first perfect home.
Just thought I’d drop you a quick email to say thank you for your wonderful service and helping us out massively in purchasing our first home together in Ashton. We couldn’t have done it without you and you explained everything so well and made sure we had a good understanding. Thank you again! And if we ever need more advice expect to hear from us!!
Representative Example: If you borrow £15,000 over 10 years. Initially, on a fixed rate for 5 years at 5.10% and for the remaining 5 years on the lender’s standard variable rate of 5.05%, you would make 60 monthly payments of £184.29 and 60 monthly payments of £185.99. The total amount of credit is £17495; the total repayable would be £22,216.80 (this includes a Lender fee of £995 and a broker fee of £1,500). The overall cost for comparison is 8.8% APRC representative.
Rates between 3.4% to 29.% APRC. Repayment terms between 3 and 30 years.
As a mortgage is secured against your home, it could be repossessed if you do not keep up the mortgage repayments.
Think carefully before securing other debts against your home
If you are thinking of consolidating existing borrowing you should be aware that you may be extending the terms of the debt and increasing the total amount you repay.