A second charge mortgage is perhaps better known as a secured loan, a term now used for any loan facility protected by assigning a portion of the free equity in your property to the lender.
As an ‘asset-backed facility’, a secured loan can offer much more flexibility than an unsecured loan. For example, larger loans, typically those over £25,000, can be repaid over a longer-term (10 years or longer). This can help clients who have been declined a personal loan or have a bespoke loan requirement and need to keep the monthly cost down. Common reasons for needing a second charge loan include:
A married couple living in Cambridgeshire wanted to make some home improvements and needed £8,000 for this work. They also wanted to reduce their credit commitments if possible, as current monthly payments were £584. A County Court judgment (CCJ) for £5,080, which was registered against them three years earlier, was also still unsatisfactory and needed to be cleared.
At an annual rate of 3.75% for two years, a loan from Optimum Credit was taken out over 20 years with monthly payments of £456. This reduced their monthly commitments by £128. The clients also received the £8,000 needed for the home improvements and managed to clear the CCJ.
A second charge mortgage can only be arranged if you already own your own home and have an existing mortgage in place, hence the name of a ‘second charge’. If you have any questions, get in touch, we’d be happy to discuss everything with you.
As an independent second charge mortgage broker, The Lending Channel deals with a panel of lenders and searches the market for the best deal on your behalf. A broker fee is charged for this service and is typically added to the value of the amount advanced, but an early repayment is also an option.
In our efforts to offer a simple and straightforward service, we ensure that you are made fully aware of any fees at the outset, and all enquiries are treated on a no-obligation basis. All loan fees are usually added to the net loan facility leaving you with no upfront charges to pay.
The criteria for a second charge mortgage
If you have landed on this page and you are not a direct client looking for a lending solution, perhaps you are interested in introducing business to us?
If you'd like to introduce us to a client or recommend business to us, please call for more details or follow the Introducers Link.
The Lending Channel are brokers, not charge lenders. We use a representative panel of lenders to source suitable lending solutions and are fully authorised and regulated by the Financial Conduct Authority. Firm Registration no. 626787.
A Debt Consolidation Loan can reduce your monthly credit charges significantly, with a possible fall by as much as 50%. However, debt consolidation can affect your credit score, depending on the option you choose, so it's always recommended you seek expert advice beforehand.
As an independent loan broker, we can advise on the options that apply to you and your circumstances and then assess the market to find a lender that is best for you.
It is likely that you will be charged a fee for our service, but that does depend on the type of facility you apply for and the solution we offer you. However, all enquiries are treated on a free, no-obligation basis, and you will be made fully aware of any fees to be charged before committing to any proposed route.
Fees can be added to the net loan facility, meaning that you would have no costs to cover immediately if you decide to proceed. Alternatively, you can pay your fees separately.
We have a long, established history providing financial solutions to clients who may face challenging circumstances, including Commercial Mortgages, Short-Term Finance Options and Specialised Buy-To-Let Mortgages.
We offer tailored lending solutions to match your specific circumstances, so call us now on 01738 583008 or complete the online enquiry to start the ball rolling.
We can help even if you have a CCJ, Individual Voluntary Arrangements (IVA), existing debt management plan or adverse credit history, including default on a payment or Trust Deed.
You reduce the monthly repayments considerably because you use a second charge mortgage (a form of a secured loan) to consolidate your credit over a much more extended period than is possible with an unsecured loan. This also allows you to borrow a much higher amount than is typical with an unsecured loan.
Up to £2.5m on standard plans. Our loans are all subject to status, affordability and having sufficient equity in your property.
No. Unfortunately, our secured loans are all second charge mortgages, which require a first mortgage charge to be in place.
Yes, quite possibly, but this will ultimately be determined by how much equity you have in your property.
No, we are a national loan broker based in Scotland who help clients all over the UK. We will compare loans for you and select the product that best suits your needs and criteria.
Yes, we are a small but growing family run business.
Typically, it will take anywhere between two and four weeks, provided the initial paperwork is returned quickly.
Usually, you will be charged a fee, and some lenders also set their own arrangement fees. All fees are typically added to the net loan facility, and there are no upfront charges.