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Second Charge Mortgage Calculator

Discover how much you could borrow with our second charge loan calculator guide.

No impact on credit score

Pete Mugleston

Author: Pete Mugleston - Mortgage Advisor, MD

Updated: August 12, 2021

If you’re looking into getting a second charge mortgage, you may be wondering how much you can borrow and how to understand repayment options using a second charge mortgage calculator.

We get lots of enquiries into second charge mortgage affordability calculators. The good news is that there are plenty of these tools available online, but keep in mind that they can only provide you with rough estimates. This article will shed light on how 2nd charge loans are calculated.

The mortgage brokers we work with have helped hundreds of people find the best option for their situation and are well placed to advise you on the best steps for your situation. Call us today on 0808 189 2301 or make an enquiry and we’ll put you in touch with someone shortly.

What is a second charge mortgage calculator?

A 2nd charge mortgage calculator is a useful tool to help you understand monthly repayments, interest paid, and length of term on your loan. They can be found on many lenders’ websites as well as other online financial hubs.

However, mortgage calculators will only give a rough idea of how much you can borrow and they’re not tailored to the customer’s needs and circumstances.

How is affordability calculated on a 2nd mortgage loan?

The size of the second charge loan will be based on the equity in your home; how much property you own outright against the percentage of the mortgage still owed on your home.

For example, if you buy a property for £250,000 and you have £150,000 left to pay on the mortgage, you could use the £100,000 equity to take out a second loan of a similar sum.

Although the amount you can borrow will be determined by and secured against your home’s equity, affordability will be calculated by factors including proof of income and loan repayment ability.

Calculate monthly repayments using a 2nd charge mortgage calculator

A 2nd charge loan calculator can help you find out how monthly repayments would be calculated on a second loan. You simply put the total sum of the loan you’d like to take out into the calculator as well as the term, or length of the loan and the estimated interest rate.

The calculator will then show you how much you will have to pay monthly by dividing the loan by the number of months in the repayment term.

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How is interest calculated on a second charge mortgage?

The higher the value of the equity in your property, the more you’ll be able to borrow, but the rate of interest you get for your second mortgage will vary from provider to provider. It’ll depend on situational factors such as your credit rating and the length of your mortgage term.

A 2nd charge mortgage calculator can help you see how much total interest you will pay over the length of your loan’s term.

To do this, it calculates how much yearly or monthly interest you would have to pay with a particular interest rate, then multiplies this according to the length of your term. It’s worth shopping around with the help of a whole-of-market mortgage broker to make sure you get the best possible interest rate.

Get bespoke calculations from a 2nd charge mortgage expert today!

A second charge mortgage calculator can give you a good start on understanding the monthly repayment and total interest owed for a specific length of term. However, to understand the affordability of taking out a homeowner loan in your situation, you’ll need a few more specifics such as proof of income and credit rating.

The advisors we work with can provide you with bespoke calculations based on your personal profile and introduce you to the right 2nd charge mortgage.

An expert mortgage broker can also advise you on affordability and best interest rates. They can also save you time and any potential negative impact on your credit rating by taking you directly to providers who are the best match for your needs and circumstances.

If you have questions about second charge loans and want to speak to an expert for the right advice, call Online Mortgage Advisor today on 0808 189 2301 or make an enquiry.

Then sit back and let us do all the hard work in finding the broker with the right expertise for your circumstances. We don’t charge a fee and there’s absolutely no obligation or marks to 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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