2nd Charge Mortgages

What is A 2nd Charge Mortgage?

A second charge mortgage, or second charge loan, is perhaps better known as a secured loan; a term now used for any loan facility protected by assigning a portion of the free equity in your property to the lender.

For more information, discuss your circumstances and to find out how we can source you the best deals available and get in touch.

As an ‘asset-backed facility’, a secured loan can offer much more flexibility than an unsecured loan. For example, larger loans, typically those over £25,000, can be repaid over a longer-term (10 years or longer). This can help clients who have been declined a personal loan or have a bespoke loan requirement and need to keep the monthly cost down. Common reasons for needing a second charge loan include:

  • Debt consolidation: as a credit repair exercise post a decree or default or as part of a debt management plan to reduce monthly credit commitments, which can be by up to 50%.
  • Capital spending: financing a car or boat, home improvements, or the holiday of a lifetime.
  • Tax bill: bringing an end to HMRC pressure.
  • Protect a low mortgage rate: your current mortgage lender might want to increase your current interest rate if you need to apply for a further advance. Taking out a second charge mortgage instead can protect your original mortgage rate.
  • Portfolio landlords may need a deposit for additional investment properties.
  • Been declined for a mortgage or loan already.


Client need

A married couple living in Cambridgeshire wanted to make some home improvements and needed £8,000 for this work. They also wanted to reduce their credit commitments if possible, as current monthly payments were £584. A County Court judgment (CCJ( for £5,080, which was registered against them three years earlier, was also still unsatisfied and needed to be cleared.


At an annual rate of 3.75% for two years, a loan from Optimum Credit was taken out over 20 years with monthly payments of £456. This reduced their monthly commitments by £128. The clients also received the £8,000 needed for the home improvements and managed to clear the CCJ.

Can I get a second mortgage?

A second charge mortgage / second charge loan can only be arranged if you already own your own home and have an existing mortgage in place, hence the name of a ‘second charge’. If you have a questions, get in touch, we’d be happy to discuss everything with you.

As an independent second charge mortgage broker, the Lending Channel deals with a panel of lenders and searches the market for the best deal on your behalf. A broker fee is charged for this service and is typically added to the value of the amount advanced, but an early repayment is also an option.

In our efforts to offer a simple and straightforward service, we ensure that you are made fully aware of any fees at the outset, and all enquiries are treated on a no-obligation basis. All loan fees are usually added to the net loan facility leaving you with no upfront charges to pay.

The criteria for a second charge mortgage / second charge loan

  • Loan to value (maximum of 100%)
  • Loans from £5,000 to £2,500,000
  • Terms range from 3 to 30 years
  • The age range is from 18 to 85 (at the end of the loan)
  • Many income sources are acceptable, including DWP, second jobs, maintenance, pension income
  • CCJs, defaults, mortgage arrears and low credit scores are acceptable on many plans
  • Interest-only repayment options are available with some lenders
  • Buy to let, or investment properties can be used as security
  • 3rd charges can be sourced


If you have landed on this page and you are not a direct client looking for a lending solution, perhaps you are interested in introducing business to us? 

If you'd like to introduce us to a client or recommend business to us, please call for more details or follow the Introducers Link

The Lending Channel are brokers, not charge lenders. We use a representative panel of lenders to source suitable lending solutions and are fully authorised and regulated by the Financial Conduct Authority. Firm Registration no. 626787.

Debt Consolidation

A Debt Consolidation Loan can reduce your monthly credit charges significantly, with a possible fall by as much as 50%. However, debt consolidation can affect your credit score, depending on the option you choose, so it's always recommended you seek expert advice beforehand.
As an independent loan broker, we can advise on the options that apply to you and your circumstances and then assess the market to find a lender that is best for you.
It is likely that you will be charged a fee for our service, but that does depend on the type of facility you apply for and the solution we offer you. However, all enquiries are treated on a free, no-obligation basis, and you will be made fully aware of any fees to be charged before committing to any proposed route.
Fees can be added to the net loan facility, meaning that you would have no costs to cover immediately if you decide to proceed. Alternatively, you can pay your fees separately.
We have a long, established history providing financial solutions to clients who may face challenging circumstances. 

We offer tailored lending solutions to match your specific circumstances, so call us now on 01738 583008 or complete the online enquiry to start the ball rolling. 

We can help even if you have a CCJ, Individual Voluntary Arrangements (IVA), existing debt management plan or adverse credit history, including default on a payment or Trust Deed.

Debt Consolidation FAQs

How do Debt Consolidation loans work? 

You reduce the monthly repayments considerably because you use a second charge mortgage (a form of a secured loan) to consolidate your credit over a much more extended period than is possible with an unsecured loan. This also allows you to borrow a much higher amount than is typical with an unsecured loan.

What is the maximum loan I could get? 

Up to £2.5m on standard plans. Our loans are all subject to status, affordability and having sufficient equity in your property. 

Will I still qualify if I don’t have a mortgage?  

No. Unfortunately, our secured loans are all second charge mortgages, which require a first mortgage charge to be in place.

Can I get a loan if I have a poor credit rating and have been turned down elsewhere? 

Yes, quite possibly, but this will ultimately be determined by how much equity you have in your property. 

Are you the lender? 

No, we are a national loan broker based in Scotland who help clients all over the UK. We will compare loans for you and select the product that best suits your needs and criteria.

Are you an independent company? 

Yes, we are a small but growing family run business.

How long will my loan take to process? 

Typically, it will take anywhere between two and four weeks, provided the initial paperwork is returned quickly.

Will I be charged a fee?

Usually, you will be charged a fee, and some lenders also set their own arrangement fees. All fees are typically added to the net loan facility, and there are no upfront charges.

The Lending Channel are members of the National Association of Commercial Finance Brokers (NACFB).
2/1 King James VI Business Centre, Friarton Road, Perth, PH2 8DY
Tel: 01738 583008 | Fax: 01738 500402

The Lending Channel are authorised and regulated by the Financial Conduct Authority.
Company number SC334818
Data Protection Act: Z2030159


Request a Call Back
To comply with data protection regulations (2018), we are unable to store and use your information unless you give us your permission. Please select Yes to allow this. View our data protection policy for details.*
Web Design by Inspire