Feefo Logo
Call an expert: 01489 555 080

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 5/5 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 01489 555 080 

    We respect your data

    We'll always treat your personal details with utmost care, and will never sell them to other companies.

    We'd like to send you updates about products and services, promotions, exclusive offers, news and events from CMME by email, SMS, phone and other electronic means. You can unsubscribe at any time by contacting us through email, telephone or post.

    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 client’s 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.

    Client Feefo Reviews

    “Fantastic Service & Amazing People”
    Tammy Chalk who was our mortgage advisor has been amazing, truly supportive and prompt in all her actions and extremely professional. Me and my husband have been experiencing financial difficulties and Tammy went above and beyond her duties to secure us a 2nd charge mortgage which has now resolved our worries and huge stress. Nothing was too much trouble for her and she kept us up to date all the way, turning the initial disappointment with one bank into a success with another one. It’s the 2nd mortgage I have taken out with CMME and would highly recommend them without a doubt. Tammy truly has given a new chance of happiness. SarahDecember 2020

    “Tammy – a knowledgeable broker with excellent service and communication”
    I would not usually leave such a long review (or even a review at all), but I felt this was a necessity. I dealt with Tammy for my second charge mortgage. I’ve dealt with well over a dozen finance companies, brokers etc. over the last few years to finance the build of our house and then an extension, and I can honestly say that the process through Tammy was by far the smoothest and most pleasant. The good thing is you are dealing directly with her. If you want to speak to her, she answers the phone directly. You’re not going through a different admin person or secretary. If you need to query something and you send an email, she always responds promptly usually on the same day (at times within minutes!). It’s been great dealing with someone who is so efficient and organised. I’ve dealt with brokers where you are waiting days to receive a reply to an email, you ring and you cannot speak directly to the person you are dealing with, you wait days for a ‘call back’, but with Tammy this was never an issue. In fact, I rarely had to ring her at all because there was never anything really to chase as she was always one step ahead. Our application was not the easiest as we had quite a few restrictions and a first charge further advance running in parallel, but nothing was ever too much for Tammy and she handled all the complexities of it brilliantly and understood the case and our requirements really well. I think the main thing was the excellent communication, just keeping me updated at all times and responding to queries so efficiently. It really makes a huge difference when you are already in a stressful situation needing funds quickly and working full time as a busy GP alongside – you need someone you can trust who don’t have to chase and Tammy certainly delivered in this aspect. She made what could have been a stressful application really stress free. A real pleasure to deal with and I would highly recommend anyone needing a second charge mortgage to approach her. Weqas – October 2020

    “Tammy Chalk – very helpful and excellent advisor”
    Tammy is an excellent advisor. I have been in touch with her for a year for home improvement top up and she helped us with right advice and guidance. Very polite and warm and always ready to help. Thank you Tammy for your valuable services. LavinaOctober 2020

    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.

    Who Can Apply For A Second Charge Mortgage?
    A second charge mortgage is open to a variety of borrowers including contractors, freelancers and self-employed professionals but there are stipulations. Firstly, and most importantly you must have an existing first charge mortgage on a property already. You must also be 18 years old and over, as well as being employed (be it in a contract or permanent work).

    How Do I Apply For A Second Charge Mortgage?
    The second charge loan application process is similar to applying for a re-mortgage.  A broker who specialises in offering second charge products will be able to gain access to a panel of lenders to ensure the quote you get is competitive and applicable to your particular set of circumstances.  Most second charge lenders only accept business through a registered Broker and in nearly all instances, the client does not need to instruct a Solicitor to act for them; which can help expedite the transaction. This is different to remortgage applications where a conveyancer/Solicitor is usually required.

    What Documents Are Required?
    Documents vary from lender to lender.  The typical documents required to assess your eligibility are a copy of your credit report, proof of income for e.g. a copy of your contract if you are a contractor, HMRC documentation if you are self-employed and payslips if you are PAYE.  If you are consolidating unsecured credit, you will also be asked to provide a list of the credit you wish to clear.  It is best to have these prepared when you go into your initial discussion.  When a loan recommendation is made to you, the lender will then ask for some additional documentation such as bank statements and their own lender specific documents such as application form, DDM etc.

    How Much Am I Able To Borrow?
    How much you can borrow depends on the existing equity in your home, which in simple terms is the percentage of your property that is owned outright by you.
    You can calculate this by establishing the value of mortgage owed on your property against the value of the home. For example, if you bought a house for £300,000 and you have £250,000 left to pay on the mortgage, then you have £50,000 equity – this can change in response to changing property demands, especially if your property increases in value.

    Opting for a second charge mortgage/secured loan will allow you to access an approved loan secured against the equity in your property. This means you will then be able to apply for a second charge, which is subject to underwriting and valuation by the lender.

    In the majority of cases, homeowners that choose a second charge mortgage/secured loan as an alternative method of raising funds tend to borrow anything between £30,000 to £80,000. The more equity you have in your property, the more money you are likely to be able to borrow. All cases are reviewed on a case-by-case basis.
    All loans are also subject to affordability calculations and credit status.
    What Are The Pros And Cons Of A Second Charge Mortgage?

    A second charge mortgage is simply another name for a homeowner loan.  It is a loan that is secured to your property.  If you stop making your repayments, the lender has the right to repossess the property from you in order to get back what they owe.  This is worst case scenario, but it works in the same way as your main mortgage.  On the plus side, because the loan is secured against your home, it is often possible to borrow more than you could with a personal loan.  Plus, you can spread your repayments over a longer term to make them more affordable.  Lenders will also lend for pretty much any legal purpose, so they are more flexible in terms of what you are using the money for.

    What Are The Alternatives?
    A second charge mortgage isn’t for everyone and there are alternatives such as re-mortgage, further advance and personal loans.
    It’s always best to speak with a specialist before applying for any type of mortgage to make sure you understand the process and what’s involved, you should also make sure that the mortgage or loan you’re applying for is the one that suits you best and that you are able to afford it.

    Sign up to our newsletter

    By clicking subscribe you agree to our privacy policy

    We respect your data

    We'll always treat your personal details with utmost care, and will never sell them to other companies.

    We'd like to send you updates about products and services, promotions, exclusive offers, news and events from CMME by email, SMS, phone and other electronic means. You can unsubscribe at any time by contacting us through email, telephone or post.