Our specialist second charge help desk is designed to support our mortgage network members. This relates to brokers with complex secured lending cases through expert placement, lender access, and dedicated team support.
Second charge mortgages can be an effective solution when remortgaging is not suitable, but criteria, affordability, and lender appetite vary significantly. Our role is to support brokers by accurately and efficiently matching cases, ensuring the best possible outcome for both adviser and client.
A secured loan may provide a benefit to your clients in any of the following scenarios:
- Avoiding substantial ERCs or higher interest rates from remortgaging.
- When the existing lender declines a Further Advance.
- Consolidating unsecured debts for better financial management.
- Managing adverse credit to improve future remortgage options.
- Financing home improvements (builders’ quotes or planning permissions may apply).
- Raising funds for business purposes without shifting to specialist lenders.
- Providing a deposit for a BTL property (specific documentation may be required).
- Supporting a Transfer of Equity after divorce (with solicitor and lender confirmation).
- Paying off tax bills directly to HMRC with verified arrangements.
When you work with our Specialist Placement Team, you gain access to:
Strong lender relationships that support a wide range of second charge mortgage scenarios. A lender panel with over 200 lenders and providers.
Expert criteria matching to help place cases accurately and secure the most suitable second charge mortgage solutions.
A streamlined, efficient process designed to move cases from enquiry to completion with minimal friction.
Whether your client requires funding for home improvements, debt consolidation, or other secured lending needs, our team is focused on helping you place more second charge mortgage cases quickly, confidently, and effectively.
Specialist Second Charge Mortgage Criteria and Lending Options
Flexible Loan to Value Options
Second charge mortgages are available up to 100 per cent loan-to-value, with third charge lending supported up to 75 per cent loan-to-value, subject to lender criteria.
Faster, Streamlined Valuations
A high proportion of second charge mortgage cases can be completed using automated valuation models, with approximately 60 to 80 per cent of applications avoiding a physical valuation.
Simplified Affordability Assessment
Certain second charge mortgage products do not rely on loan-to-income calculations, instead assessing affordability based on overall income and expenditure.
Wide Range of Acceptable Funding Purposes
Second charge lending solutions are available for a variety of purposes, including business-related borrowing. Joint-borrower, sole-proprietor structures can also be used to improve affordability where appropriate.
Flexible Employment and Income Criteria
Applicants may be considered with as little as one year of self-employment history. Selected lenders may accept employed applicants with only one month of employment. Return-to-work income may be used if the applicant returns within six months, provided the employer confirms the return in writing.
Broad Acceptance of Income Types
Construction Industry Scheme income can be assessed using CIS payslips rather than tax returns. Secondary income streams may be accepted at 100 per cent, subject to a maximum of 60 hours per week and a minimum time in both roles.
Adverse Credit Considered
Specialist second charge lenders may consider applicants with recent or current secured arrears, County Court Judgments, significant defaults, and active or historic debt management plans.
Flexible Second Charge Mortgage Products
A wide range of second charge mortgage products is available, including variable-rate options with no early-repayment charges and fixed-rate products for two, three, four, or five years. Five-year fixed-rate options are also available, with no early-repayment charges, subject to lender terms. Learn more about second charge mortgages in our guide.
Case Study | Name of Study
Background:
Mr and Mrs Taylor are a couple in their early 40s who have been living in their family home in Manchester for over 15 years. Their property is valued at £350,000, and they have a remaining first charge mortgage balance of £120,000. Their interest rate is favourable at 2.5%, and they did not want to disturb this arrangement.
Recently, the Taylors decided to renovate their home to include a modern open-plan kitchen and a small extension to create a home office. They received quotes from contractors, estimating the renovation cost at £50,000.
Challenge:
The couple explored increasing their first charge mortgage but realised it would mean losing their current low rate and incurring early repayment charges of £4,000. They also looked into personal loans but found that borrowing such a large amount through unsecured credit would result in higher monthly repayments.
Solution:
Their mortgage adviser, Sarah, suggested a second-charge loan as an ideal solution. This option allowed them to borrow £50,000 without affecting their current mortgage terms.
Details of the Second Charge Loan:
- Loan Amount: £50,000
- Term: 10 years
- Interest Rate: 4.2% fixed for the first 5 years
- Monthly Repayment: £513
Outcome:
With the second-charge loan, the Taylors could proceed with their home renovations without affecting their existing mortgage. They completed their dream kitchen and created a functional workspace, increasing both their home’s value and their quality of life.
Key Takeaways for the Adviser:
- Second-charge loans can be a flexible solution for homeowners who need access to funds without altering their primary mortgage.
- It’s essential to assess the client’s existing mortgage terms, early repayment penalties, and overall affordability to ensure this solution fits their financial situation.
Specialist Placement Team
Second Charges Mortgages
01708 676 135