How it works
A second charge mortgage is a separate loan secured on your home, behind your main mortgage. Your existing mortgage deal stays in place.
When it can beat remortgaging
- Your main mortgage has a low fixed rate you want to keep
- Remortgaging would trigger a large early repayment charge
- Your credit or income has changed since you took the first mortgage
Costs to compare
Look at the rate, broker and lender fees, valuation and legal costs, and the total amount repayable, then compare against a further advance or remortgage.
The risk
Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.
Common questions
Does my first lender need to agree?
Usually not, although your mortgage terms may require you to tell them.
Is a second charge mortgage regulated?
Yes, when secured on your home it is regulated by the FCA.
This guide is general information, not personal financial advice. If you are worried about debt, free help is available from MoneyHelper, StepChange and Citizens Advice.
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