Second Charge Mortgages (Secured Loans)
A second charge mortgage can be a flexible way to raise funds without changing your existing mortgage. Whether you need money for home improvements, debt consolidation, a large purchase or investment, our partners can help you find the right second charge solution.
PD Finance acts as an introducer only for this type of business.
What Is a Second Charge Mortgage?
A second charge mortgage is a loan secured against your property, running alongside your existing mortgage. Instead of remortgaging your whole loan, you keep your current mortgage and add a separate second charge on top.
This is ideal if you:
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Have a great existing mortgage rate you don’t want to lose
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Are tied into early repayment charges
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Recently started a new job or became self-employed
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Want to borrow more but can’t raise enough through a remortgage
When a second charge might be right for you V.S Remortgage.
You’re on a low fixed rate
Leaving your current mortgage could cost more than adding a second charge.
You have early repayment charges
Avoid paying thousands in ERCs.
You need to borrow for a specific reason
Not all mortgage lenders allow borrowing for certain purposes.
Your credit has changed
You can keep your current mortgage and use a specialist lender for the second charge.
Affordability works better split across two loans
Separating the loans can sometimes give stronger affordability results.
How Much Can You Borrow?
Second charge mortgages typically allow borrowing from:
Second Charge Mortgage Rates
Rates depend on:
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Credit score
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Loan-to-value (LTV)
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Employment status
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Income and affordability
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Loan purpose
Our partners compare a wide panel of second charge lenders to get you the best available options for your situation.
You may benefit from a second charge mortgage if you:
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Are tied into a fixed rate with ERCs
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It's right for your circumstances
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Have credit blips that affect remortgage options
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Want to consolidate debts into one monthly payment
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You are undertaking large renovations or extensions
Our partners help you understand whether a second charge is truly the best solution.
Second Charge - Frequently Asked Questions
Will a second charge mortgage affect my existing mortgage
No. Your existing mortgage stays exactly the same — only the new second charge is added on top.
Can I get a second charge with bad credit?
Yes. Many specialist lenders offer second charge options for clients with missed payments, defaults or lower credit scores.
How long does a second charge mortgage take to complete?
Most cases complete within 1- 4 weeks, depending on documents and lender requirements.
Can I pay off my second charge early?
Yes. Some lenders charge an early repayment fee, while others are more flexible. We’ll explain the terms clearly before you apply.
What can I use a second charge mortgage for?
Common uses include renovations, debt consolidation, business purposes, large purchases, or covering unexpected expenses.
Moving Home?
Can I Port My Mortgage?
If you are you planning on moving to a new house but want to keep your mortgage, you can do this as long as your mortgage is portable, you can make the transition smoothly. The lender will assess the value of the property and your financial status to ensure that you can still afford the mortgage. It's typically easier if the new home is worth the same or less than your current mortgage. In some cases, you may even be able to increase your mortgage if you can manage the repayments. However, if you cannot keep your current mortgage, you will likely need to pay it off, which may result in early repayment charges.
DISCLAIMER: Re-mortgage
Your home may be repossessed if you do not keep up repayments on your mortgage. You may have to pay an Early Repayment Charge to your existing lender if you remortgage.