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What are Second Charge Mortgages?

A second charge mortgage is a type of secured loan that allows homeowners to use the equity in their property as collateral for additional borrowing. This loan is called a "second charge" because it is secondary to your main mortgage, which is the "first charge." The amount you can borrow depends on the equity you have in your home and your ability to repay the loan. Second charge mortgages can be a useful financial tool for those who need to access a substantial sum of money but do not want to remortgage their primary mortgage.

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How Second Charge Mortgages can be used

Second charge mortgages offer flexibility in how the funds can be utilised. Common uses include:

Home improvements: Renovating or extending your property to increase its value or improve your living space.

Debt consolidation: Combining multiple high-interest debts into a single, more manageable repayment.

Large purchases: Funding significant expenses such as buying a car, financing a wedding, or covering education costs.

Business investments: Providing capital for business expansion or new ventures.

Emergency funds: Accessing money quickly for unexpected financial needs.

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The Chartwell Difference

Why It's Important to Use a Qualified Advisor for Second Charge Mortgages

Navigating the complexities of second charge mortgages requires expertise and careful consideration. Using a qualified advisor ensures you receive professional guidance tailored to your unique financial situation. Here’s why it’s crucial:

Expert Assessment

A qualified advisor will evaluate your financial circumstances to determine if a second charge mortgage is the best option for you.

Access to Better Deals

We have access to a wider range of lenders and products you won't find on the high street, ensuring you get the most competitive rates and terms.

Comprehensive Advice

Get detailed advice on the implications of taking out a second charge mortgage, helping you understand the costs, risks, and benefits.

Smooth Process

Advisors handle the paperwork and negotiations, making the application process more efficient and less stressful for you.

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What our customers say

See what real customers have to say about their experiences with the Chartwell Funding team

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Josh and the team at Chartwell made my remortgage a very smooth experience. I was updated regularly and they were on hand to answer any questions, the process was quick and efficient and the team are really knowledgeable and friendly. Highly recommended

Joanne

First time using Chartwell Funding..... and wont be my last. Dealt with Chris and Josh, who were both extremely professional in everyway, and I must admit patient also! Each step of the way was communicated with me. Another mention must go to Jordan, who is organising our insurance. Again another professional and friendly service.

Andrew

Every member of the team I spoke to was helpful & responsive. They found us a mortgage offer in good time with the monthly repayments that we’d requested. They charged us a fair rate for the service. Shout out to both Kain & Star for being particularly helpful throughout the process.

Sean

Chartwell Funding are a fantastic company at securing mortgage/remortgage funding. Robert and Izzy's knowledge of the mortgage market is second to none. I would thoroughly recommend them if you are looking for a mortgage.

Geraint

Excellent service, very friendly and knowledgeable. Used them got years and plan to keep using them. Have had Matt help me buy more of my flat and eventually move into my house. Wouldn't of been possible without him. Highly recommend

Phil

We had an excellent experience with Stephen at Chartwell Funding during our recent house purchase. He was super-quick at responding to emails or calls and very much gave the impression that nothing was too much trouble. Chartwell were recommended to us by a family member who was very impressed with their service. My partner and I strongly recommend them as well.

Dan

Frequently asked questions

Here are some of the most common FAQs we hear about buying a home

Can I get a second charge mortgage with bad credit?

It is possible to get a second charge mortgage with bad credit, although it may come with higher interest rates and stricter terms. Some lenders specialise in providing loans to individuals with poor credit histories.

What are the interest rates for second charge mortgages?

Interest rates for second charge mortgages are generally higher than for first charge mortgages due to the increased risk to the lender. The exact rate will depend on your credit history, loan amount, and lender policies.

What is a second charge mortgage?

A second charge mortgage is a type of secured loan that uses the equity in your home as collateral. It is called a 'second charge' because it is secondary to your primary mortgage. This means that if you default on your payments, your primary mortgage lender is paid first, and the second charge lender is paid from the remaining proceeds.

How can Chartwell help with second charge mortgages?

Chartwell's expert advisors can assess your financial situation, explain your options, and help you secure a second charge mortgage that meets your needs. They have access to a wide range of lenders and can provide personalised advice to ensure you make an informed decision.

Why would I need a second charge mortgage?

A second charge mortgage can be useful if you need to borrow a substantial amount of money and have equity in your property. It is often used for purposes such as home improvements, debt consolidation, funding a new business, or other large expenses.

How much can I borrow with a second charge mortgage?

The amount you can borrow with a second charge mortgage depends on the equity you have in your home, your credit history, and your ability to repay the loan. Typically, lenders allow you to borrow up to 75-85% of your property's value, minus your existing mortgage balance.

How is a second charge mortgage different from remortgaging?

A second charge mortgage allows you to borrow additional funds without changing the terms of your existing mortgage. Remortgaging involves replacing your current mortgage with a new one, which can potentially offer better rates or terms but might incur early repayment charges.

How do I apply for a second charge mortgage?

To apply for a second charge mortgage, you typically need to provide information about your existing mortgage, your income, expenses, and the purpose of the loan. A mortgage advisor can help you navigate the application process and find the best deal for your situation.

What are the risks of a second charge mortgage?

The main risk of a second charge mortgage is that your home is used as collateral, meaning you could lose your property if you fail to make payments. It's essential to ensure that you can afford the repayments and to consider the long-term financial implications.

How can Chartwell help with credit repair?

Chartwell can provide personalized advice and support to help you understand your credit report, identify areas for improvement, and implement effective credit repair strategies. Our experts guide you through the process, helping you achieve a better credit score and secure more favorable financial opportunities.

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Get in touch with Chartwell today for a free consultation and expert advice to help you find the best solution to your mortgages and insurance needs

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