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secondchargelarge

Second charge
mortgages

Help your client access equity in their property with second charge mortgage guidance from Enterprise Finance. We deliver access to the best loans on the market, a fast process and no upfront costs.


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Why second charge finance?

An ideal alternative to remortgaging or a further advance, second charge mortgages provide a fast, cost-effective means of secured borrowing. At Enterprise Finance, we find solutions for any type of borrower, providing advised and non-advised assistance for those who:

  • Have high early redemption penalties on existing mortgage.
  • Enjoy an attractive interest rate they don’t wish to lose.
  • Lack the credit rating required for mainstream borrowing.
  • Cannot obtain necessary funds required via remortgaging.

Cast an informed eye

Gain up-to-date insight into the second charge mortgages landscape with the latest Second Charge Report from Enterprise. Offering an exclusive view of the growth, trends, and developments happening across the market today, this resource is essential reading for all intermediaries, brokers, and property experts.

Download the report

Key features

  • Competitive interest rates
  • Loans available up to 100% LTV
  • Buy-to-let second charge mortgages available up to 85% LTV
  • Impaired credit loans available up to 75% LTV
  • Up to £2,000,000 standard lending criteria (more available by exception)
  • No costs for the customer incurred until completion – including valuation and legal*
  • Fixed rates available with no extended tie-ins
  • Peace of mind that your clients’ cases are being dealt with by leading industry experts

*depending on mortgage type

Frequently asked questions

The basics

What is a second charge mortgage?

A second charge mortgage is a secured loan against a client's property, that gives them access to the equity they hold in it. As such, it is only available to property owners. It’s called a ‘second charge’ mortgage simply because the primary mortgage on a property is referred to as the ‘first charge’ mortgage.

What are the main benefits of a second charge mortgage?

Second charge mortgages offer speed of completion when compared to remortgaging or a further advance. They allow a flexible approach to customer circumstances and offer more generous income multiples than other forms of finance too. Unsecured loans are typically capped at approximately £35,000, but second charge mortgages do not have these restrictions.

Who can apply?

Any property-owning individual can apply for a second charge loan with Enterprise.

How much can my client borrow?

Where a second charge mortgage is used to buy property, the borrower can apply for:

  • Up to 100% loan-to-value on residential properties
  • Up to 85% loan-to-value on buy-to-let properties
  • Up to 75% loan-to-value for clients with credit problems

Criteria

Which type of property can a second charge mortgage be secured against?

The following properties can be used against an Enterprise Finance second charge loan:

  • A primary place of residence
  • Buy-to-let properties
  • Commercial properties

For what reasons might a client apply for second charge mortgage?

There are many reasons you might consider a second charge mortgage for your client. These commonly include:

  • They want or need to consolidate other debts
  • They require access to funds but have a bad credit rating
  • They need to raise capital quickly (with Enterprise, second charge loans are typically completed in around three to four weeks from application)
  • They want to avoid paying an early repayment charge on an existing mortgage
  • The interest rate on their current mortgage is attractive and they do not want to lose it by remortgaging
  • They require funding for home improvements
  • Their business needs extra funding (something many mortgage lenders are not willing to consider with remortgaging)
  • They need to pay a tax bill
  • They have to pay school fees
  • They want to raise a deposit to buy an investment property

Terms

Does my client pay any initial costs on a second charge mortgage?

Enterprise Finance covers all up front costs associated with setting up a second charge mortgage secured against a residential property (including the valuation costs). The costs are only payable by the client if the loan completes. Clients do have the option to pay some or all costs upfront or add these to the loan amount, subject to affordability.

Our team of mortgage advisors is experienced in assessing loan applications, and therefore will let you know whether a loan application is likely to succeed before an application is even processed. This way we are able to manage expectations and save you and your client time and money.

When arranging a second charge mortgage on a BTL property, the client will pay for their own valuation.

Application process

How long before I’m in a position to tell my client if we can proceed with their application?

Our experience means that in most cases we will be able to confirm almost straightaway whether your client’s application is likely to be successful.

How long will an application take to complete?

From the initial enquiry to completion, our average turnaround time for a second charge mortgage is three to four weeks.

Fees, repayments & commission

What is the repayment term on a second charge mortgage?

The repayment term can be anywhere from five to 30 years.

Are second charge mortgages interest-only or repayment-based?

Both interest-only and repayment options may be available depending on the client’s circumstances.

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Ready for better?

If you’d like to enjoy a simplified second charge mortgage application that provides immediate access to the best mortgages and rates on the market, speak to Enterprise Finance today.


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