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Second charge mortgage brokers

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Pete Mugleston

Author: Pete Mugleston - Mortgage Advisor, MD

Updated: December 15, 2021

If you’re interested in taking out a second charge mortgage against your property as an alternative to raising funds without remortgaging, then you’ll want to find a broker who can provide the best rates for your circumstances.

Whilst the demand for second charge mortgages has been on the rise, customers who approach high-street lenders instead of applying through a whole-of-market mortgage broker may end up paying a higher rate than expected. But finding these second charge mortgage advisors doesn’t have to be difficult or time-consuming – we can connect you to the right expert.

The advisors we work with are ideally placed to find the most suitable solution for your needs and circumstances. Even if you’ve been turned down by lenders in the past, don’t hesitate to give us a call on 0808 189 2301 or make an enquiry. We’ll then put you in touch with an expert who can help find the right deal for you.

What do second charge mortgage brokers do?

Second charge brokers are advisors who sit between you and the mortgage lenders, and operate within the secured loans market. They may be specialists who only arrange second charge mortgages on behalf of customers, or generalists who work across different product types. Their job is to give you independent advice and to find the most suitable deal for your needs and circumstances.

Second charge lending guidance has tightened since secured loans came under FCA regulation in 2016, and brokers are also obliged to provide you with certain additional pieces of information as a result.  The second charge regulations include drawing up a comparison between a full remortgage and a second charge loan, so you can make a fully-informed decision on which one is better for you.

The second charge mortgage specialists we work with excel at arranging second charge mortgages for customers of all types, and are ideally placed to advise you.

What second charge broker fees can I expect?

Second charge mortgage brokers tend to have similar fee structures to standard or ‘first charge’ mortgage brokers, and you’ll usually agree a fee based on a percentage of the amount you want to borrow. Some brokers offer a more bespoke service that will be priced according to the complexity of your case, while others will charge a fixed fee.

Historically, it was fairly common for second mortgage brokers to charge heftier fees of up to 10%, but this is no longer the case since regulation came into play.

Second charge mortgage brokers for bad credit

Many of the customers who approach us for advice on second charge mortgages have been turned down for finance elsewhere due to blemishes on their credit history.

Second charges can be a good solution for homeowners in this situation because as their name suggests, secured loans provide security to the lender in the form of a property. This means they may be more inclined to overlook a less-than-spotless credit record, but they will want to be satisfied you can keep up payments on two mortgages as well.

The brokers we work with can offer bespoke advice to people who are looking to get a second charge mortgage with bad credit and have access to lenders who are flexible enough to take the age, severity and reason for the issue into account.

Second charge mortgage brokers for self-employed borrowers

If you’ve taken out a mortgage while self-employed, you’ll know it can be harder to find willing lenders, and this can also be the case when the cash you’re looking to borrow is in the form of a second mortgage.

However, your loan to value (LTV) ratio is likely to be a more significant factor in a lender’s calculation, so if you’ve built up plenty of equity in your property and don’t already have a large mortgage, lenders are more likely to approve your mortgage application.

That being said, there are also some lenders who don’t fully understand the needs of self-employed customers, and it can be time-consuming and frustrating trying to find one that specialises in your employment status.

If you’re in this situation, we can refer you to a second charge broker who can find lenders that are happy to accept self-employed customers in the market for secured loans.

Second charge mortgage brokers for retired borrowers

Second charge mortgages are likely to be harder to come by for older borrowers, and many lenders won’t consider retired applicants.

There are also likely to be other options available to you as an older homeowner, for example, a retirement interest-only (RIO) mortgage or another form of equity release could be more suitable, and can be used to free up equally large sums of cash.

However, if you do want to explore the possibility of a secured loan in retirement, there are lenders that have products designed for retired borrowers, especially those that have a lot of equity in one or more existing properties and are in less debt overall.

Second charge loan brokers for non-standard property

If you’re thinking of securing a second charge loan against a non-standard property, you are likely to encounter the same issues you may have done when you first took out a mortgage on it. Fewer lenders will consider your application because of the impact its quirks may have on resale value.

However, it should still be possible to take out a second mortgage on it with the right advice.

The brokers we work with are experienced at successfully arranging mortgages for properties of all types, and this applies to second charge loans, too. Make an enquiry to find out more.

Brokers for second mortgages on Buy-to-Let properties

If you own multiple properties, a second mortgage on an investment property is one of several options you may have for borrowing extra funds, and you may feel more comfortable putting a second charge on a property you don’t consider to be your home. This is also a relatively common way of financing the next purchase in your portfolio, so rates can be quite competitive.

A note of caution is advised here, because Buy-to-Let was exempted from the FCA regulations that protect second charge lending on main residences. This means that brokers working in this field aren’t obliged to provide you with the advice and information outlined in our guide to second charge mortgages, but if you’re keen to explore this option we can help guide you towards the most reputable brokers who will follow best practices for second charge lending on buy-to-let properties.

Speak to 2nd charge loan brokers today

If you have any further questions about second charge mortgages and want to speak to an expert for bespoke advice, call us today on 0808 189 2301 or make an enquiry online.

We’ll get in touch as soon as we can for an initial chat to discuss your requirements, then we’ll get to work in finding a specialist second charge broker with the right expertise for your circumstances. We don’t charge a fee and there’s absolutely no obligation or marks on your credit rating.

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About the author

Pete, an expert in all things mortgages, cut his teeth right in the middle of the credit crunch. With plenty of people needing help and few mortgage providers lending, Pete found great success in going the extra mile to find mortgages for people whom many others considered lost causes. The experience he gained, coupled with his love of helping people reach their goals, led him to establish Online Mortgage Advisor, with one clear vision – to help as many customers as possible get the right advice, regardless of need or background.

Pete’s presence in the industry as the ‘go-to’ for specialist finance continues to grow, and he is regularly cited in and writes for both local and national press, as well as trade publications, with a regular column in Mortgage Introducer and being the exclusive mortgage expert for LOVEMoney. Pete also writes for OMA of course!

Read more about Pete

Pete Mugleston

Mortgage Advisor, MD

FCA disclaimer

*Based on our research, the content contained in this article is accurate as of the most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The information on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms who are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs.

Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.

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