Second Charge Mortgage coming into its own

After years of being known as a first charge mortgages slightly less attractive cousin, second charge is starting to come into its own.

With many lenders offering lower rates and the majority of master brokers charging lower fees, today’s second charge borrower has access to a very real alternative to a re-mortgage or further advance.

Indeed, second charges are having something of a renaissance. The renewed and growing interest from the intermediary market — arguably prompted in March 2016 when the European Mortgage Credit Directive came into force — can be demonstrated by significant growth in both second charge loan volume and value during the past quarter.

Figures recently released by the Finance & Leasing Association reveal that second charge mortgage business increased in August by 27.5% in value and 30% in volume, compared with the same month in 2016.

What is more, consumers are beginning to gain awareness of the second charge option and to understand how it can assist them now and in the future.

Who can benefit?

Second charge mortgages are not necessarily the best option for every client wishing to capital raise. Typically, they prove useful for clients who are:

  • Tied into a fixed mortgage with restrictive early repayment charges
  • Benefiting from an existing low mortgage rate
  • Being offered a further advance with a higher rate


Would you like to know more?


If you are considering taking out a new secured loan please do make contact and one of our qualified advisers will be happy to help.