Second Charge mortgages

A second charge mortgage is additional borrowing secured against a property that already has a mortgage. It allows you to access equity without remortgaging, keeping your existing mortgage deal intact.

Consider a second charge mortgage when you need additional funds but want to keep your existing mortgage deal, when you have early repayment charges, or when you need quick access to funds for specific purposes.

The amount you can borrow depends on your equity, typically up to 85-90% of the property value minus your existing mortgage. The exact amount depends on your circumstances and the lender's criteria.

Second charge mortgages can be used for home improvements, debt consolidation, business purposes, education costs, or other personal expenses. The specific purposes vary by lender.

Second charge mortgage costs include arrangement fees, legal fees, valuation fees, and potentially broker fees. These costs can range from £1,000 to £3,000 or more, depending on the loan amount and lender.

The second charge mortgage process typically takes 4-8 weeks, depending on the complexity of your case and the lender's requirements. It may be faster than remortgaging as it doesn't involve changing your existing mortgage.

Some lenders may consider second charge mortgage applications for borrowers with minor credit issues, though the criteria may be stricter. You'll typically need a larger deposit and may face higher rates.

You'll need proof of income, bank statements, current mortgage statements, property details, and identification. The exact requirements vary by lender and your circumstances.

Yes, self-employed borrowers can get second charge mortgages, though you'll need to provide detailed accounts and tax returns. Some lenders may require longer trading history for self-employed borrowers.

If you're struggling with payments, contact your lender immediately. They may offer payment holidays or other support options. It's important to address issues early to avoid defaulting on either mortgage.