Second Charge Mortgage Broker

We provide second charge mortgage solutions for UK clients looking to raise finance.

• Second Charge Mortgages from £10,000
• Funds secured typically within 2-3 weeks
• 6x income borrowing and higher
• Loan purpose can include: home improvements, deposit for buying second home, debt consolidation, business purposes, car purchase, school fees, investment/holiday properties, gifts to a family member, paying tax bills, weddings, lifestyle funding etc.
• Fees can be rolled up and added to the loan
• Market leading second charge mortgage rates
• Up to 100% loan to value
• Term - 1 to 30 years
• Residential and BTLs (buy to let, both regulated and unregulated)
• No early redemption fee options (ERCs) even with fixed rates
• No legal cost options - external solicitors often not required
• Adverse credit options - some lenders consider CCJs, IVAs, DMPs and more
• Up to 4 applicants on a mortgage
• Joint borrower, sole proprietor accepted
• England, Wales & mainland Scotland 
• Fast professional service. We understand that sometimes finance needs to be arranged quickly!

Through our market knowledge, we can deliver enhanced, bespoke or exclusive terms.  

Call us on 0203 900 4322 to discuss your requirements.

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What is a Second Charge Mortgage Broker?

A second charge mortgage broker is a financial specialist who helps homeowners secure additional borrowing against their property. These brokers act as intermediaries between borrowers and lenders, offering access to a wide range of second charge mortgage products.

In the UK, while some high street banks offer second charge mortgages, many specialist lenders operate primarily through brokers. This means working with a broker can often give you access to deals and rates you wouldn't find on your own.

A good second charge mortgage broker has in-depth knowledge of the market, understands which products you're eligible for, and maintains strong relationships with lenders. These relationships can work in your favour, as brokers can often negotiate better terms and present your application in the best light.

What Does a Second Charge Mortgage Broker Do?

A second charge mortgage broker assesses your financial situation and property value to help you find the most suitable second charge mortgage. Their role includes:

• Evaluating your borrowing needs and financial circumstances
• Searching the market for appropriate products
• Explaining the terms and conditions of different options
• Handling the application process on your behalf
• Negotiating with lenders to secure the best possible terms

The Benefits of Using a Second Charge Mortgage Broker

• Expertise: Brokers have in-depth knowledge of the market and can provide tailored advice.
• Access to Better Deals: Brokers often have access to exclusive products and rates not available directly to consumers.
• Time-Saving: Brokers handle the research and paperwork, streamlining the process for you.
• Problem-Solving: For clients with complex financial situations or poor credit histories, brokers can often find solutions that might not be apparent to the average consumer.

Working with a broker ensures efficiency and compliance, streamlining communication between you, the lender, and other parties involved in the process (such as solicitors and valuers).

Do Banks Offer Second Charge Mortgages?

While some high street banks do offer second charge mortgages, the range of products is often limited compared to what's available through specialist lenders. Many of these specialist lenders operate primarily through brokers.

Second charge mortgages from specialist lenders can be more flexible and may be more suitable for those with complex financial situations. Working with a broker gives you access to this wider range of options, increasing your chances of finding a product that fits your specific needs.

Second Charge Mortgage Case Studies

How Long Does It Take to Arrange a Second Charge Mortgage?

The process of arranging a second charge mortgage typically takes 3-6 weeks, but this can vary depending on your circumstances and the complexity of your application. Factors that can affect the timeline include:

• The speed of property valuation
• The efficiency of your solicitor
• How quickly you can provide necessary documentation
• The lender's current processing times

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When Should You Consider a Second Charge Mortgage?

Common reasons for seeking a second charge mortgage in the UK include:

• Home improvements
• Debt consolidation
• Business funding
• Purchasing additional property
• Paying off tax bills

For example, let's say you want to add an extension to your home. A second charge mortgage could provide the funds you need without disrupting your existing mortgage arrangement.

UK Market Insights: Second Charge Mortgages in 2024

As of 2024, the UK second charge mortgage market is competitive. Rates start from as low as 7% for well-qualified borrowers. However, rates can vary significantly based on individual circumstances and loan-to-value ratios.

How Do You Repay a Second Charge Mortgage?

Unlike bridging loans, which are typically repaid in one lump sum, second charge mortgages are usually repaid in monthly instalments, much like a standard mortgage. The loan term can range from a few years to 25 years or more, depending on your circumstances and the lender's criteria.

It's crucial to understand that a second charge mortgage is secured against your property, in addition to your first mortgage. This means your home could be at risk if you fail to keep up with repayments on either mortgage.

Some lenders may offer flexible repayment options, such as overpayment facilities or payment holidays. A broker can help you find products with terms that suit your financial situation and goals.

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Can I Get a Second Charge Mortgage with Bad Credit?

Yes, it is possible to get a second charge mortgage with less-than-perfect credit. While a good credit score can help you secure better rates, second charge mortgage lenders often take a more holistic view of your financial situation.

Factors that lenders consider include:

• The amount of equity in your property
• Your current income and employment status
• The purpose of the loan
• Your overall debt-to-income ratio

If you have credit issues, working with a broker becomes even more valuable. They can identify lenders who specialise in bad credit second charge mortgages and help present your application in the best possible light.

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Second Charge Mortgage Calculator

Use our second charge mortgage calculator below to get an indicative quote on costs and fees. It offers an estimate of potential interest payments based on the amount you're looking to borrow, the length of term and your interest rate.

How Easy Is It to Get a Second Charge Mortgage?

The ease of obtaining a second charge mortgage depends on various factors, including:

• The amount of equity in your property
• Your income and employment status
• Your credit history
• The purpose of the loan
• The policies of individual lenders

With the right help, applying for a second charge mortgage can be a straightforward process. If you have significant equity in your property and a stable income, you have a good chance of being approved.

Related: How To Get A Second Charge Mortgage – Read more about how we can secure you a favourable second charge mortgage at Clifton Private Finance

Looking for expert guidance on second charge mortgages? Our team of specialist brokers is here to help. Get in touch today for personalised advice.

Get Expert Second Charge Mortgage Advice Today

We offer expert advice, industry knowledge, and access to a wide range of lenders to ensure you get the best rates for your circumstances.

Call our team on 0117 959 5094 to discuss your requirements or book a consultation below.

You can also use our 24/7 enquiry service through live chat - contact us any time, and we'll get back to you as soon as possible.

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FAQs

What's the difference between a second charge mortgage and remortgaging?

A second charge mortgage is an additional loan on top of your existing mortgage, while remortgaging involves replacing your current mortgage with a new one.

Can I get a second charge mortgage with bad credit?

It may be possible, but it depends on your overall financial situation. A broker can help you explore your options.

How much can I borrow with a second charge mortgage?

This depends on factors like your income, credit score, and the equity in your property. Some lenders offer up to 95% of your property's value, minus your existing mortgage.

How long does it take to arrange a second charge mortgage?

The process typically takes 3-6 weeks, but a broker can often help speed things up.

Are second charge mortgage rates higher than first charge mortgage rates?

Generally, yes. However, rates can vary widely, and a broker can help you find the most competitive deals.

Can I use a second charge mortgage for buy-to-let properties?

Yes, many lenders offer second charge mortgages for buy-to-let properties.

What happens if I can't repay my second charge mortgage?

As with any secured loan, your property could be at risk if you fail to keep up with repayments. Always ensure you can afford the repayments before taking out a second charge mortgage.