What are Second Charge Mortgages or Secured Loans?
Second Charge Mortgages or Secured Loans are quickly becoming part of mainstream lending, as more homeowners than ever before look for an alternative to remortgaging or taking out a personal loan. These types of loan use the borrower’s home as security, helping them to raise funds against their property for a wide range of purposes. They are often used to raise additional funding when a homeowner’s existing lender will not, or cannot, release any additional funds.
Allowing homeowners to retain their current mortgage at a competitive interest rate, a Second Charge Mortgage or Secured Loan is widely associated as being an option for those who have recently become contractors, people who need to raise funds quickly, property owners with a poor credit rating, as well as those looking to raise capital against their UK property in order to purchase premises abroad.
Second Charge Mortgages or Secured Loans still need to be repaid alongside your first mortgage and if your home is repossessed, lenders will recover funds in order of their charge. Just like with any mortgage, failing to repay it could mean you’ll lose your home.
From raising funds for home improvements, or for the purpose of buying a new vehicle through to paying for a wedding, there are a huge amount of reasons why people decide to take out a Second Charge Mortgages or Secured Loan. Some of those other reasons include:
- Debt Consolidation
- Home improvements/extensions
- Helping with University fees
- Helping your family with a deposit for their first home
- Buy-to-let property purchase
- Children’s tuition fees
You can find out more about Second Charge mortgages and how they can benefit you in our Second Charge mortgage guide.
Client Case Study
Arthur had been contracting for 3 years. Due to some personal issues, his savings had been depleted due to him helping a family member out at a difficult time. Arthur didn’t have enough resources to pay a corporation tax bill and he had also occurred some historic mortgage arrears. To help with onward expenditure, whilst borrowing for the tax bill, Arthur also borrowed some money to clear high interest credit cards that had accrued during the difficult period he had encountered. He also raised a little extra to carry out some overdue home improvements. The lender Tammy recommended was more than willing to help as they could see why he was in the position he was and were comfortable with that. They were happy with the clients Contract even though no set pay rate was stated within the contract. They took an average of his last 3 months invoices which demonstrated the level of income he was receiving which was regular and in line with what the client had said he was earning.
“A comprehensive and professional service.
CMME provided a comprehensive service throughout the Lifecycle of the loan application process and were able to seamlessly support my needs amongst their team. They have a detailed understanding of contractors, the self-employed, and the consumer debt market, and were able to recommend a number of appropriate products very quickly as a result. They were very proactive in clarifying the pro and cons of every product suggested and were always on hand to provide further detail when required. I can honestly say I would strongly recommend them.” Tony
“Great service, very impressed.
Great service from CMME’s Second Charge Consultant, Tammy Chalk who was knowledgeable, patient, efficient and friendly throughout the application process. I wouldn’t hesitate in recommending CMME in general and Tammy in particular.” David
“Fantastic service from Tammy and Ben.
Tammy was brilliant and thoroughly helpful throughout the process. Tammy delivered what she promised, and I found the whole process very smooth. Definitely recommend Tammy at CMME.” Jagbir
“Communication was excellent.
Communication was excellent. I was kept informed of progress on my application and the process at all times. Emails and telephone calls were responded to very quickly. The process was explained clearly, and all questions and queries answered thoroughly. Tammy Chalk was always very polite, helpful and sounded a really nice person. I would definitely recommend you guys.” Roger
Speak to a Second Charge consultant today!
- Access to some of the most competitive rates in the market
- Deals designed exclusively for contractors
- Experts in complex incomes
- Rated 4.9/5 by CMME clients on Feefo
A short, initial free consultation with one of our expert Second Charge mortgage advisers will ensure you get a tailored quote. Complete the form below to book your consultation, or call us directly on