Secured Loans - 2nd charge mortgage advice

Secured loans can be a very useful tool for raising extra money, which includes all the reasons listed on the Capital Raising page.
Otherwise known as second-charge loans, these loans sit behind your main mortgage and legally count as a 2nd mortgage.

The costs of setting up a secured loan are generally a little higher than a first charge mortgage, but the majority of these loans can be redeemed at any time without penalty which provides useful flexibility.

An alternative to a secured loan may be to take a further advance from your main mortgage lender, but this is not always possible and not always appropriate to the purpose for which you need the money. Nevertheless, that is an option we will always review on your behalf.


  • avoid an early repayment charge on your main mortgage if you are currently tied into a fixed period
  • Impaired credit may make it more difficult to arrange a first charge mortgage
  • you may wish to retain the benefit of a very low standard variable rate or base rate tracker on your main mortgage
  • you may not wish to disturb an interest only mortgage
  • it may be more difficult to meet the affordability criteria of a first charge mortgage than a secured loan i.e. the money you need may not be available from your main lender
  • you may have been caught out by the tightening of affordability criteria on BTL mortgages
  • you may want the flexibility to take the loan over a shorter period or to repay it entirely when the time comes to arrange a re-mortgage
  • you may need time to repair your credit record before taking on a new first mortgage


  • we will review your circumstances and your existing mortgage in order to advise the most appropriate solution to meet your needs
  • we will advise you of the costs involved in the various options available to you
  • by using a secured loan we can often raise more money, if required, than would be available on a first charge mortgage
  • if you choose to apply for a secured loan we will liaise on your behalf with an independent packaging company to ensure that any proposed loan is appropriate to your circumstances
  • we will ensure that all the costs and terms of the secured loan are fully explained to you before you make a final commitment
  • we will monitor the application process from start to finish, liaise with you regarding information requirements from the lender and work to ensure that everything goes smoothly

Think carefully about securing other debts against your home. Your home or property may be repossessed if you do not keep up repayments on your mortgage or any other debts secured on it.

Some forms of Buy to let mortgages are not regulated by the Financial Conduct Authority

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