Second Charge Mortgage Lenders

Lenders offer second charge mortgages the way they provide any other kind of mortgage products: with varying degrees of rates, application criteria and terms set out.

If you’re thinking this might be the right borrowing option for you, understanding where to go for a second charge mortgage is key. This article will outline which lenders are out there and how to find them.

Which mainstream lenders provide second charge mortgages?

There is no hard and fast rule as to which lenders offer these kinds of loans. Availability varies, and the most obvious providers are not always the most plentiful.

For example, NatWest doesn’t generally offer second charge mortgages, but it’s willing to consider them if you have your existing mortgage there. However, only if it would rank above other loans if you faced financial hardship, and would be next in line for repayment after your first mortgage.

Other examples are Halifax and Santander, who do give existing customers the chance to ‘borrow more’, but don’t set these out as second charge loans, seemingly encouraging types of additional borrowing and mortgage extensions instead.

While the big high street lenders might not have transparent directives on second charge mortgages, there are still plenty of options out there, especially in the growing alternative lending market. Read on for more on this.

Specialist lenders

There is more flexibility entering the market, with equity release-style products undergoing something of a resurgence.

This is good news for people who might find second charge mortgage criteria from traditional lenders far too restrictive, such as those who will only consider lending to their existing customers, including NatWest, Penrith Building Society and Marsden Building Society.

However, the more broader-looking alternative lending market is experiencing a boost thanks to innovations in fintech (finance technology), with start-ups and online brokerage platforms providing another place to turn. Examples of these are Secta Finance, Pepper Money, Freedom Finance and Revolut.

What interest rates do they typically offer?

Take a look at our rates table below to get an idea of the second charge mortgage deals currently available.

Please note that the above rates were accurate at the time of writing, but are always subject to change. Speaking to a mortgage broker is the best way to find the most up-to-date deals.

How using a second charge broker can help

Scouring the market for the best interest rates is no easy feat, even with more straightforward loans. While second charge mortgages tend to be easier to access than unsecured personal loans, details about them are particularly tricky to find, mainly because lenders will handle them on a case-by-case basis.

This makes going through a specialist broker when you’re searching and applying for one crucial for a number of reasons:

They know where to look

Brokers understand the market. They have access to information and have cultivated contacts. They already know which lenders offer these products and which ones will consider your application. In short, they’ll be able to save you a lot of time and, potentially, some money too.

They can handle the complexities involved

A broker will help to navigate the complex criteria that will crop up before you submit an application. For example, before you take out a second charge loan your current lender on your existing mortgage has to give permission for you to do so, even if you are taking it out elsewhere.

There are other rules that may seem confusing, such as the fact that some lenders will consider a first and second charge mortgage completing simultaneously (Leeds Building Society, Barclays, Leek United Building Society), while others stipulate they will not (Metro Bank, Nationwide, Accord Mortgages, HSBC).

Some lenders want you to outline your reasons for borrowing more within your application. For example, Furness Building Society might only agree to scenarios where parents wish to protect a gifted deposit by way of a second charge. Others, such as Shawbrook Bank, are happy to lend for reasons such as weddings, holidays or cars.

They tailor the application to your circumstances

Online calculators and forms that generalise with box-ticking are not always helpful in this situation as they don’t take into consideration the nuances and specifications of your personal status.

The expert brokers we work with will walk you through the application and what information needs to be presented. They talk you through your financial situation and take time to understand your needs.

Once they get a detailed picture, they will then be able to identify the best solution for your circumstances, offering their support and ensuring you understand the process.

Get matched with a second charge broker today

Securing a second charge mortgage is certainly possible, even if you’ve struggled with financial setbacks such as bad credit. You just need to know where to turn and get the right support in place.

The advisors we work with understand the latest developments in the evolving second charge mortgage market, and they have access to the entire landscape. We only match our customers with brokers who are specialists in their field, have cleared our vetting process for five-star service and credentials, and offer value and excellence.

Call us today on 0808 189 0463 or make an enquiry online for a free, no-obligation initial consultation to find out more.