What is a Second Charge Mortgage—And Could It Work for You?

Zak Hewes
Jul 7
2 min read

When you need to borrow more money but don’t want to change your current mortgage, a second charge mortgage could be the solution. It’s a lesser-known option, but for the right person, it can be a smart financial move.

At Your Mortgage Manager, we’re here to make the complex feel simple—so let’s break it down.

🔁 Second Charge Mortgage vs. Remortgage: What’s the Difference?

A remortgage is when you replace your current mortgage with a new one—often to release equity or get a better rate.

A second charge mortgage, on the other hand, is a separate loan secured against your property, in addition to your existing mortgage. You keep your current mortgage as it is and borrow a second amount from a different lender, using your home as security for both.

Example:

You owe £150,000 on your current mortgage but your home is worth £300,000. You may be able to take out a second charge loan of, say, £40,000 using the equity you've built up—without disturbing your first mortgage.

✅ The Pros of a Second Charge Mortgage

Keep your current mortgage deal: Especially useful if you're locked into a low rate or fixed term with early repayment charges.
Access to larger loan amounts: Useful if you’ve built up equity in your home.
Flexible uses: Great for home improvements, debt consolidation, business investment, or helping a family member.
Available for self-employed or adverse credit: Some lenders offer second charges when a standard remortgage isn't possible.

⚠️ The Cons to Be Aware Of

Secured against your home: Like your main mortgage, your home is at risk if you can't keep up the payments.
Potential for higher interest: Especially if you have poor credit or the loan-to-value ratio is high.
Two sets of payments: You’ll now have to manage two monthly payments instead of one.
Fees may apply: Valuation, legal, and broker fees can be involved—though we aim to keep costs transparent and competitive.

👌 Who Is a Second Charge Mortgage Ideal For?

A second charge mortgage may be a smart choice if:

You’re on a great mortgage rate and don’t want to remortgage.
Your current lender won’t allow further borrowing.
You have early repayment charges that would make a remortgage expensive.
You’re self-employed or have poor credit, and remortgaging would be costly or unlikely.
You need funds quickly, and a second charge could be arranged faster than a full remortgage.

📝 How to Apply for a Second Charge Mortgage

At Your Mortgage Manager, we make the process simple:

We assess your current mortgage, equity, and affordability.
We search the market for second charge deals—including specialist lenders.
We handle the paperwork and lender communication.
We’ll guide you through to completion, ensuring the new loan works for your needs now and in the future.