What is a second mortgage?
A second mortgage, often called a second charge mortgage or secured loan, is a separate loan secured on a home that already has a first mortgage. It runs alongside the first mortgage rather than replacing it. The first lender is repaid first if the property is sold or repossessed, and both repayments must be maintained.
Read more about second charge mortgages, also known as secured loans or homeowner loans. These are different from a mortgage to buy a second property.
How does a second charge mortgage work?
A second charge mortgage leaves an existing mortgage in place and adds a separate secured loan. A lender assesses the application, including affordability and the property, before taking a charge that ranks behind the first mortgage. The borrower then has two separate secured repayments, and missing either can put the home at risk.
Explore how the process works and the factors affecting eligibility.
When might people compare a second mortgage with other borrowing?
People commonly compare a second charge mortgage with remortgaging, a further advance from their existing lender or unsecured borrowing. Each can have different costs, terms, eligibility and risks. A second charge can keep an existing mortgage unchanged, but it creates another secured debt; a regulated adviser can assess the available options.
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No route is automatically better. Compare total cost, fees, repayment term and any risk to your home. Eligibility and terms depend on your circumstances and the lender; a regulated adviser can assess your options.
Read the full comparison of second mortgages and remortgaging, or explore rates and costs.
What needs careful consideration before secured borrowing?
Secured borrowing can put a home at risk if repayments are missed. The interest rate is only one cost: fees, APRC, the repayment term and any early repayment charge can affect the total amount repaid. Consolidating shorter-term debts over a longer secured term can increase total cost even if monthly payments fall.
Read about risks of a second mortgage and borrowing with adverse credit before starting an enquiry.
How does the quote journey start?
The Get a quote form is a short enquiry. It covers the amount and purpose, the property and mortgage, your name, age and address, employment, income and a self-assessed credit view, with email and phone last. The form is sent to Loans Warehouse for assessment, and Loans Warehouse contacts you. Sending the form is not an application, an offer or a guarantee that finance will be available.
Start a quote, try our repayment calculator, or explore what a second mortgage can be used for.