Second charge mortgages

We can make this easy

What is a second charge mortgage?

The security for a second charge mortgage is the borrower’s existing home or investment property, and the mortgage is made in addition to the first charge mortgage. Second charge mortgages are an established part of the mortgage lending market, and they can provide additional funds for clients looking to raise capital for a wide variety of purposes.

Types of mortgages covered within this division:

Capital raising secured on residential and buy-to-let properties, by way of second charge mortgage.

Typical client scenarios

Your client:

• Wants to raise capital on buy-to-let properties/across portfolios, without the time constraints of a remortgage.
• Wishes to avoid the ERCs that a remortgage would incur.
• Is looking to raise capital but wants to retain their existing low rate.
• Has acquired some adverse credit history since taking out their main mortgage and is unable to find a remortgage deal.
• Wishes to keep the new mortgage separate from their main mortgage.
• Wants to pay off the second charge mortgage much sooner than the main mortgage.
• Wishes to receive the advance sooner than a standard remortgage could deliver.
• Has an interest-only main mortgage and wishes to retain it.
• Wishes to borrow beyond normal retirement age.
• Does not want to pay any upfront fees.

Available for a wide variety of purposes including:

• Home improvements
• Home improvements to main residence, while living at a separate address
• Debt consolidation
• Raising a deposit for onward property purchases
• Raising funds for business investment
• Weddings
• School/university fees
• Holiday home purchase
• Luxury purchases
• Tax bills
• Transfer of equity.