Second Charge Loan

Second Charge Loan

If you need a Second Charge Loan, we can help


  • Provide Mortgage Advice
  • Raise capital for a variety of purposes
  • Research all the best mortgage offers
  • Provide you with a professional hassle free service
About Second Charge Loans

Second charge loans are often referred to as second mortgages, because they have secondary priority behind your main (or first charge) mortgage.  They are often used as a way to raise money further money against the equity in a property, when it is not possible or preferable to increase the first mortgage.

A second charge mortgage allows you to use some of the remaining equity you have in your home, as security against another loan. It means you will essentially have two mortgages on your Buy-to-Let property.

Second charge loans can be arranged on a variety of property types including your own home, a Buy-to-Let property and a commercial property. They can be arranged both on a long term basis e.g. 25 years or on a short term ‘bridge’ basis of say up to 12 months.

Why a second charge loan?

The following are some examples of how our clients have used second charge loans

Client A had some credit problems after taking out his first mortgage. He wishes to raise money against the equity in his property, but remortgaging meant he would end up paying more interest on all of his mortgage. Taking a second charge loan meant that he could keep the competitive rate on his first mortgage.

Client B had a first mortgage with a high early repayment charge.  It was cheaper for him to take out a second charge mortgage rather than to remortgage and pay the fee.

Client C wanted to borrow more on her Buy-to-Let property, but the rental income was not high enough to meet a standard lenders affordability requirements. An equity second charge loan was able to be granted. As there are no monthly payments to make, this lender did not require the rental income to be higher.

What if you move house?

If you sell your home you could pay off your second charge mortgage at that point. It could be possible, subject to the lenders agreement, to transfer it to a new property.


To take out a second charge loan, you will normally need to seek permission from your first mortgage lender. Most lenders will allow this but some lenders do have restrictions. It is worth calling your lender to check their policy before proceeding with a second charge application.

Your buy to let property may be repossessed if you do not keep up repayments on your mortgage.

Reliance Mortgages Ltd Reliance Mortgages Ltd (FCA No.794930) is an Appointed Representative of Connect IFA Ltd which is Authorised and Regulated by the Financial Conduct Authority (FCA No. 441505). The FCA does not regulate Business Buy to Let Mortgages and Commercial Mortgages to Limited Companies. Reliance Mortgages Registered Office: 1st Floor Holborn Gate, 330 High Holborn, London, WC1V 7QT. Company Registered in England and Wales Reg.11022139. Reliance Mortgages Ltd is registered with the Information Commissioner's Office under registration reference: ZA288283. Copyright © 2019 All Rights Reserved
  • Reliance Mortgages Limited (FCA No. 794930) is an appointed representative of Connect IFA Limited (441505) which is authorized and regulated by the Financial Conduct Authority.
  • Commission disclosure: We are a credit broker and not a lender. We have access to an extensive range of lenders. Once we have assessed your needs, we will recommend a lender(s) that provides suitable products to meet your personal circumstances and requirements, though you are not obliged to take our advice or recommendation. Whichever lender we introduce you to, we will typically receive a commission from them after completion of the transaction. The amount of commission we receive will normally be a fixed percentage of the amount you borrow from the lender. Commission paid to us may vary in amount depending on the lender and product. The lenders we work with pay commission at different rates. However, the amount of commission that we receive from a lender does not have an effect on the amount that you pay to that lender under your credit agreement.
  • The guidance and/or advice contained within this website is subject to the UK regulatory regime and is therefore primarily targeted at consumers based in the UK.
  • There will be a fee for mortgage advice the precise amount will depend upon your circumstances, but we estimate that it will be 1% of the loan amount.
  • A fee of £199 payable at the outset when you apply for the mortgage. We don’t charge any fee for insurance services.
  • Your home may be repossessed if you do not keep up repayments on your Mortgage.