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Second charge
mortgages

A Second Charge Mortgage is a loan secured against a property that offers a client an alternative way to release equity from a home.

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.

Speak to one of our experts

The power of Second Charge Mortgages

When is a Second Charge required?

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.

The benefits of a Second Charge

An ideal alternative to remortgaging or a further advance, second charge mortgages provide a fast, cost-effective means of secured borrowing. 

transparent-min Fully transparent and regulated in line with the FCA

flexible-min Flexible terms and lending criteria

delivery-min Speed of delivery

competitive-min Competitive rates

Key features

  • Competitive interest rates
  • Loans available up to 100% 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

When should a client consider a Second Charge Mortgage?

The Individual

A client has been declined by the high street lender and cannot access a further advance or remortgage if they:

  • Are self-employed
  • Are credit impaired
  • Are at salary multiple limit
  • Need to raise capital for a purpose not accepted on the high street.

The current mortgage

The client may not wish to take a further advance or remortgage if their current mortgage is:

  • Has ERC’s - a penalty to remortgage
  • Interest Only - Changing to a repayment mortgage could be more costly
  • Bank Base rate Tracker - Where the client’s current rate cannot be beaten

Case studies

We pride ourselves on speed, expertise and efficiency of placing the most complex cases. Read some of our amazing case studies and examples of how even the most challenging situations the team have secured finance for our clients.

July 8, 2021

How we helped customers to reduce their monthly outgoings and free up £1k in debt payments


Read the case study

June 24, 2020

Case study: 15 days to secure a Second Charge mortgage during lockdown


Read the case study

February 21, 2020

Case Study - £57,000 Second charge mortgage completed in 3 days


Read the case study

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 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.

Other services

Bridging Loans

Bridging loans are short-term interest-only loans commonly taken out by clients needing immediate access to funds. We work on your behalf to deliver access to market-leading rates, with rapid loan completion as standard.

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Development Finance

Experience lightning-fast development finance support from Enterprise Finance. We have the knowledge, experience and expertise to help you secure the funding needed to take advantage of a development opportunity.

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Complex buy-to-let

Ideal for clients with circumstances a little more out of the ordinary, we can help secure funding for a wide range of scenarios, and deliver a tailored solution.

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Commercial Mortgages

Access to market-leading rates, with unique, tailored commercial mortgages through Enterprise Finance. We'll assess cases the high-street can't and manage your clients' applications from cradle to grave.

View Service

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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