Other Financial Services
Second Charges – Secured Loans
Second charge mortgages (or second mortgages) are so-called because they take second priority behind your main mortgage. They are a secured loan, which means they use the borrower’s home as security. So only homeowners can apply for them.
Example
Your home is worth £500,000 and you have £225,000 left to pay on your mortgage, the maximum you can borrow is £275,000 (the remaining equity value).
Because of the greater risk involved in second charges, lending criteria is much stricter and involves affordability assessments and ‘stress tests’.
In certain cases, a second charge mortgage may be cheaper than re-mortgaging. However, we will need to go through the numbers as well as the eligibility and particular circumstances with you before making suitable recommendations.

