A Simple, Flexible Way to Access Extra Funds Without Changing Your Main Mortgage
Sometimes you just need a bit of extra breathing room. Maybe it’s to fix up your home, clear some debts, or put money into a new project. A second charge mortgage can help you do that without changing your main mortgage. It’s simply a way to release some of the value you’ve already built in your property.
At Commercial Finance Network, we keep things simple. No jargon, no pressure – just clear advice and support from people who understand how important getting it right really is.
Rest assured – as a whole-of-market broker, we work with all the second charge mortgage lenders, so we’re confident we can find you the best rates and terms which suit your exact requirements.
Second Charge Mortgage Available For:
- Individual borrowers and UK businesses
- Residential properties
- Commercial properties
- Unoccupied real estate
Regardless of your earning potential and financial discipline, you can still find yourself running low on readily available finances. As is the wont of financial crises, they present themselves at the most inopportune times, making matters worse. Most people and businesses, when faced with such money problems, look to get external funding, typically in the form of personal loans.
Personal loans, as convenient as they may be, aren’t always the best way out of such situations. For starters, personal loans can only provide a small, temporary support, that, as you may well know, is often very expensive. Moreover, your credit score will always dictate if you can get a personal loan, and how big it will be.
Second charge mortgages offer a better, more reasonable and certainly more affordable alternative to such loans. A 2nd charge mortgage, also referred to by many as a second mortgage, a homeowner mortgage or simply, a secured loan, is essentially a loan taken against a property you own. Commercial Finance Network helps you find customised, affordable and unprecedentedly flexible second mortgage quotes from responsible lenders across the UK.
Try our Second Charge Mortgage Calculator today to see how much you can borrow and what you’re monthly payments will be.
Key Features of Our 2nd Charge Mortgage Services
- We work with ALL the second charge lenders
- Second charge loans starting from as low as £10,000
- Second mortgages available across the board for all properties
- Lowest second charge mortgage rates
- Secured property loans for up to 95% LTV
- Industry-leading interest rates for secured loans (fixed and tracker rates available)
- Second charge mortgages available despite bad credit
- Over 10 years’ of experience in the UK finance industry
- Receive quotes from whole of market lenders
- Guaranteed decisions within 24 hours
- Fair valuation and thorough paperwork assistance
- Fast processing and disbursement
- 24 x 7 customer service
What Is a Second Charge Loan?
A second charge mortgage is a second mortgage on the property you already own.
It is a convenient, easy and fast way of raising funds when you need them the most. Thousands of homeowners and businesses across the UK use second mortgages to address emergency cash requirements. As the name suggests, a second charge mortgage can claim the second charge on property, while the original mortgage claims the first charge. It’s important to know and understand that second charge mortgages, just like all other property mortgages, are secured against the property.
Hence, if you are taking a second mortgage on your home, the lender can repossess your home if you fail to repay the mortgage on time.
Advantages of Taking a Second Charge Mortgage
- Available on nearly all properties
- Flexible loan terms – from 6 months to 10 years
- Loan size in proportion with your equity in the property
- Hassle-free, fast paperwork
- Affordable 2nd charge mortgage rates
- No need to alter the framework of the original mortgage
- Available even when you have a bad credit score
Why Do People Need A 2nd Charge Mortgage?
For a variety of reasons.
The underlying reason, however, is always to make up for the cash shortfall towards another expense. Some of the common reasons for homeowners and businesses across the UK to take second mortgages and secured loans are:
- Raising capital for business ventures
- Paying tax dues
- Emergency personal or family requirements like home improvements, weddings, education, healthcare, buying a new car etc.
- Consolidating expensive debts
- Raising funds to buy or lease another property
- Transferring one’s equity in a property
- Miscellaneous cash crises
Second Charge Mortgage vs Remortgaging
Many homeowners assume that taking a second charge mortgage is just the same as remortgaging a property. The reality, however, couldn’t be more different.
Taking a second mortgage is inherently different in purpose, scope and structure from remortgaging a property. When you take a second mortgage on your home or any other property you own, you essentially take a loan for which the property acts as a security. On the other hand, when you remortgage a property, you establish a new mortgage altogether to replace the original mortgage.
Example
Let’s consider an example to understand how taking a second charge mortgage differs from remortgaging. A homeowner wants to raise £35,000 to fund an extension, for which the planning permission has already been obtained. The property in question is already mortgaged for £250,000, with repayments scheduled for 10 more years.
Having exhausted other credit options, the homeowner cannot access an affordable personal loan. So, he goes on to take a second charge mortgage on the property at a suitable interest rate. The repayments for this secured loan will be in tandem with the repayments for the interest-only original mortgage.
If, on the other hand, the homeowner had decided to remortgage the property for, let’s say, £300,000, he would have gained access to an additional capital of £15,000. However, the early redemption penalty (typically 2-5%) for the original mortgage would have nullified this extra capital. So, remortgaging would, in effect, have been a significantly more expensive and unreasonable deal than the second mortgage.
You Can Get a Second Charge Mortgage Despite Bad Credit!
Bad credit is one of the most common reasons that compel individuals and businesses to go for secured loans. Having a bad credit score against your name not only affects your potential to get a loan, it also acts as a bottleneck for you to improve your creditworthiness.
Secured loans like second mortgages are the best course of action to take in such situations. Since second charge mortgages are inherently tied to the market value of the property, lenders see them as reasonably free of risks. Therefore, it’s often possible to get a second charge mortgage in spite of a less-than-favourable credit score.
Why Commercial Finance Network?
When you are applying for a second charge loan, it’s important to understand the exact deal you are getting. Many property owners find themselves dealing with unreasonable interest rates for long periods of time, simply because they picked a wrong deal.
With Commercial Finance Network, you take guesswork out of the equation. Instead of accepting the first loan offer that comes your way from the local high street lender, you can now choose from dozens of competing, fair and affordable second charge mortgage offers from responsible lenders across the UK.
“With fair valuation, fast processing & thorough support, Commercial Finance Networks makes getting a second charge mortgage a truly hassle-free process.”
Along with this luxury of choice, as a leading second change mortgage broker, Commercial Finance Network brings to the mix vast experience in the UK financing industry. With us at the helm, you can stay assured that your interests will always be safeguarded, preserved and cared for.
Here’s why Commercial Finance Network’s second charge mortgage services have come to be known as an industry standard:
- Each second charge mortgage we broker is customised to suit the borrower’s exact requirements.
- Our panel of lenders consists of specialist and responsible lenders across the UK. This allows us to find for you the most affordable second charge mortgage offer.
- Second charge mortgage quotes you’ll receive from us will be based exclusively on a fair and reasonable valuation of your property.
- We provide thorough, end-to-end support for every second mortgage application.
- Our customer service team is available to address any issues you may have along the way. All loan decisions are conveyed within 24 hours.
FAQs – Second Charge Mortgage
What is a second charge mortgage?
A second charge mortgage is just another loan secured by your home, in addition to your main mortgage, which is the first charge mortgage. A 2nd charge mortgage lets you get some of the money out of your home without changing your current deal. This is great if you need money for home improvements, paying off debt, or other big plans.
How does a 2nd charge mortgage actually work?
A 2nd charge mortgage uses the equity in your home as security, but your original mortgage stays in place. You’ll make separate payments to the second charge lenders, often at a different rate. It’s a flexible way to borrow without disturbing a good first charge mortgage.
Who offers second charge on property?
Second charge mortgage lenders include both mainstream banks and specialist finance companies. Some focus on helping people who might not fit the usual lending criteria – for example, those who are self-employed or have had credit challenges in the past. For best access to the best 2nd charge mortgage rates speak with a second charge mortgage broker.
Why would I choose a second charge loan over a remortgage?
A second charge loan can be a good idea if you have a good rate on your main (first charge) mortgage or would have to pay a lot of money to switch. It lets you borrow more money without affecting your first mortgage, which is great if you only need extra money for a specific purpose.
Are second charge mortgage rates high?
Second charge mortgage rates can be a little higher than your main mortgage, but that’s not always the case. 2nd charge rates vary depending on your credit history, equity, and income. The good news is, second charge lenders have become far more competitive in recent years.
Can I get a 2nd charge mortgage if I have bad credit?
Yes, you can. Many second charge lenders take a more personal view than traditional banks. They’ll look at your current situation and the equity in your home, not just your credit score. If the numbers work, you could still be approved and funds released quickly to you.
How much money can I get with a second charge mortgage?
The amount you can borrow depends on how much your property is worth, how much equity you have, and what you can afford. Some second charge mortgage lenders will lend you between £10,000 and several hundred thousand pounds, depending on your situation.
What are the best 2nd charge mortgage rates?
It can be hard to figure out second charge mortgage rates on your own, so it’s good to have someone on your side. At Commercial Finance Network, we work with all of the second charge lenders to find rates and terms that really work for you, not just what looks good on paper.
Find the Best Second Charge Mortgage Quotes – Right Here, Right Now!
When it comes to niche finance products like second charge mortgages, high street lenders and banks have little new to offer. The same old off-the-shelf loan quotes based on exceedingly lower valuation of your property usually leave you with smaller loan sizes and higher interest rates. In many cases, the perks of taking a second mortgage are all but lost in the maze of lopsided loan structures.
But that doesn’t have to be the fate of your 2nd charge mortgage. When you are attaching a valuable security to the loan, you should never have to settle for anything that doesn’t fit your requirements. This is where having a vastly experienced whole of market broker like Commercial Finance Network on your team makes all the difference.
Settle for nothing but the best – Contact us today to request a free second charge mortgage quote!