If you are looking to make improvements to your property, but you don’t want to lose your existing interest rate or incur early repayment fees by remortgaging, a second-charge secured loan could be the answer. It means you keep your existing mortgage and you have a ‘second loan’ which sits on top.

Also known as homeowner secured loans, they give you a way to build an extension or conservatory, convert a loft space and pay for improvements such as new windows or doors.

They can even be used for debt consolidation to help reduce the monthly costs of repaying credit cards, finance agreements and other debt.

There are many factors to consider when considering a second charge loan, particularly any fees and particular conditions, which is where we can help.

Second Charge Loans are on a Referral basis. Please get in touch, we would be happy to help.


  • Secured loans such as second charge loans can allow you to borrow a much larger amount than unsecured loans
  • You can get lower interest rates on secured loans and longer repayment terms than with unsecured loans
  • If you have bad credit, these secured loans are an option as lenders can be more lenient if there is the security of an asset
  • They offer choice and flexibility with fixed or variable interest rates


  • Second charge loans are where your home is used as security. The mortgage lender has the ‘first charge’ and the secured lender the ‘second charge’. This means that should the borrower default and the property is repossessed and sold, the mortgage lender will be able to recoup their debt first, and any proceeds left to go to the secured lender
  • Secured loans are regulated by the Financial Conduct Authority, the UK’s financial regulator

Are there any extra fees?

Second charge loans can incur exit, arrangement (around 2% of the loan)and legal fees, but we can help you understand what they are beforehand and look for loans that won’t charge exit fees if you pay back early.

Can I apply?

  • You must be 18 or over to apply
  • You must have a valuable asset to use as collateral (usually a home)
  • Live in the UK
  • You’ll need to show personal and employment details including salary, your outgoings and outstanding debts
  • You can take out a secured loan on a property you are renting out, but you must be the sole owner of you would like to use as security


  • You want to build an extension which will cost £30,000
  • You have an existing mortgage of £90,000 at a fixed rate for five years
  • You can apply for a second charge loan of £30,000 to sit on top of your existing mortgage of £90,000 to save you having to remortgage and lose a good fixed rate and pay early exit fees – the two loans remain separate

NOTE: Like all secured loans, a second charge loan will be secured on your property, so your home could be at risk if you don’t keep up the repayments.

Looking to buy a house and need a deposit, want to buy land or a house for cash at auction, but haven’t sold your own home yet? You might want to consider a bridging loan.

Ready to speak to us about second charge loans?

Second Charge Loans are arranged by a referral basis.