Homeowner Loan Lenders

A second charge mortgage lender is a regulated financial institution that provides a second loan secured against a property that you have an existing mortgage on. The term second charge refers to the legal priority of the loan. This means that if the property were to be repossessed, your primary mortgage provider would be paid off first, and the second charge lender would be repaid from any remaining funds.

Because of this legal positioning, second charge loans are underwritten by specialist lenders rather than traditional high street banks.

A second charge mortgage provider sits behind the main lender, offering a separate, standalone secured loan running parallel to your first mortgage. They differ in both the type of loan they offer, and the type of criteria they have.

Primary lenders focus heavily on strict affordability and LTV criteria, whereas second charge providers typically use specialist bespoke underwriters that allow more flexibility around income types, credit history, and loan purposes.

The UK second charge market consists primarily of specialist lenders and financial institutions, rather than high street brands, such as those listed above.

Each second charge provider assesses applications on a case-by-case basis, making them particularly useful if your financial situation falls outside standard high street rules.

While a handful of lenders allow direct enquiries, the vast majority of UK second charge mortgage lenders operate exclusively through intermediary channels. This means you will usually need to work with a specialist second charge mortgage broker to access their full range of products.

Using an FCA-regulated broker, like ourselves, helps ensure you are matched with a lender whose criteria fit your personal circumstances while saving you from unnecessary credit searches.

Borrowing from a second charge lender is often an option if you’re unable to remortgage due to a decline in financial circumstances. It can also help you to protect a low interest rate on your existing mortgage if you want to utilise your equity without remortgaging the whole loan onto a higher rate.

It can also be another way to borrow more without activating Early Repayment Charges (ERCs) by remortgaging before your first mortgage deal ends.

Most second charge lenders offer loans starting from £10,000 up to £500,000 or more, depending on your available equity and personal income. Borrowing limits are calculated based on your property’s Loan-to-Value (LTV) ratio.

Second charge lenders will typically lend up to 75%–85% LTV, though select specialist providers may stretch up to 90% LTV for borrowers with strong credit profiles. Keep in mind that the LTV is inclusive of your current mortgage, so if your outstanding loan is at 40% LTV, you could borrow between 35-40% with an absolute maximum of 45%.

Yes, this is one of the main advantages of specialist second charge providers. They are typically much more likely to consider applicants with adverse credit history, such as historic missed payments, CCJs, or defaults, than a traditional mortgage lender.

They are usually also open to applicants with complex income streams, including self-employed accounts, director dividends, contractor day rates, and bonus structures.

Because second charge lending carries a higher risk than first-charge mortgages, their interest rates are generally slightly higher. However, that said, they are usually still significantly lower than unsecured personal loans or credit cards.

Fees vary from one provider to the next, but typically include:

• Lender Arrangement Fees (which can often be added to the loan balance)

• Valuation Fees

• Broker Fees

Yes, they need this before a second charge loan can complete. Your first charge mortgage lender must give their formal consent (Deed of Postponement or lender consent), which confirms they agree to allow another charge to be registered against the title.

Your mortgage broker and second charge provider handle this request on your behalf as part of the underwriting process.

The timeline for securing a second charge mortgage is typically taking between 2 to 4 weeks from application to payout. Delays can occur, usually depending on how quickly consent is obtained from your primary lender, however, they are generally faster than a full remortgage or property purchase mortgage.