2nd Charge Mortgages

What is a 2nd Charge Mortgage?

A 2nd charge mortgage is also known as a second charge mortgage, second line mortgage or a second mortgage. It is a type of loan that is secured against a property behind a 1st charge. They are called this because they rank lower in priority than a 1st charge mortgage (the primary mortgage), but are secured against the same property.

We find that 2nd charge mortgages are primarily used by homeowners to access equity in their property and are taken out whilst maintaining their existing 1st charge mortgage. This helps enable you to access additional funds, without the refinancing or making changes to your primary mortgage terms that may still have time to run on a low fixed rate.

2nd charge mortgages often provide more flexibility in regard to what you can use the money for and the qualifying for the loan (as this is normally based off of LTV, and serviceability). Because of this, they can be used for a variety of purposes, such as:

• Debt consolidation that may have arisen.
• To compliment your existing mortgage.
• Investing in additional property or businesses.
• Home improvements and plans, such as extensions.
• Even fund school or university fees.

Next steps …

If you are looking for a 2nd charge mortgage or would like to understand further what it can be used for, contact our team today .

We’ll help provide the information you need, or be able to start the process of obtaining this type of loan for you.

If this doesn’t quite sound like what you need, you can also check out our additional Regulated Mortgage services, Residential Mortgages or Self-Build.