Borrow against your home. Keep your existing mortgage.
A second charge mortgage lets you raise £10k to £1.5m without touching your current deal. No early repayment charges. No rate changes. Your adviser handles the whole thing.
How It Sits on Your Property
Your existing mortgage stays exactly as it is
What is a second charge mortgage?
A second charge mortgage is a loan secured against your property that sits alongside your existing mortgage. You might also see it called a secured loan or homeowner loan. It's the same product under a different name.
The "second charge" part means your existing mortgage lender holds the first charge on your property, and the new lender holds the second. Your current mortgage stays completely untouched.
This makes it ideal when remortgaging doesn't work. If you're locked into a competitive rate, facing early repayment charges, or your first charge lender won't lend for your purpose (debt consolidation is a common example), a second charge gives you another route.
You can borrow from £10,000 to £1.5 million, depending on your property equity and affordability.
Important: Your home may be repossessed if you do not keep up repayments on your mortgage. Make sure the monthly payments are comfortable for you before going ahead.
Second charge mortgages are regulated by the Financial Conduct Authority (FCA). Applications are handled by Loan.co.uk, which is authorised and regulated by the FCA. You're protected by strict rules on fair treatment, clear information, and responsible lending.
Second Charge vs Remortgage
Which route suits you?
Second Charge
Remortgage
Why choose a second charge over remortgaging?
A second charge mortgage is often the better route when changing your main mortgage would cost you more than it saves.
Locked into a good rate
You're on a competitive fixed rate and breaking it would trigger early repayment charges. A second charge lets you borrow extra without touching that deal.
Consolidating debts
Many first charge mortgage lenders won't allow debt consolidation as a borrowing purpose. Second charge lenders are built for exactly this.
Home improvements
Fund an extension, renovation, or loft conversion without remortgaging. Borrow the exact amount you need on its own separate term.
ERCs would wipe out savings
If your early repayment charges are thousands of pounds, it often makes more financial sense to keep your mortgage and take a second charge for the additional borrowing.
Large or unusual borrowing
Need £100k or more for a tax bill, business investment, or property deposit? Second charge lenders offer higher amounts and more flexibility on purpose than most first charge lenders.
Credit history isn't perfect
Specialist second charge lenders consider applications where high street remortgage lenders would decline. Missed payments, CCJs, or defaults don't automatically rule you out.
Why a second charge mortgage could work for you
All the flexibility of additional borrowing, without the cost or disruption of changing your main mortgage.
Your mortgage rate stays the same
A second charge sits alongside your existing deal. You don't lose a competitive rate, and you don't pay early repayment charges to your current lender.
Borrow £10k to £1.5 million
Second charge mortgages are built for larger amounts. How much you can borrow depends on your equity and what you can afford to repay each month.
Choose your own repayment term
Repay over 3 to 30 years, independently of your main mortgage. Pick a shorter term to save on interest, or a longer one to keep monthly costs down.
Use the money for almost anything
Home improvements, debt consolidation, a property deposit, tax bills, school fees, or a major purchase. Second charge lenders are flexible on purpose.
Options for all credit types
Because the loan is secured, specialist lenders can consider applications where remortgage lenders might decline. Less-than-perfect credit doesn't automatically mean no.
Up to 50% lower broker fees
Albot connects you with Loan.co.uk advisers at up to half the broker fee of major high street competitors. Same expert advice, lower cost to you.
Three steps to your second charge mortgage
It's straightforward. Here's what happens when you use Albot.
Quick questions
Tell us about your home, your existing mortgage, and how much you want to borrow. Takes 90 seconds.
⏱ 90 secondsSee your options
Albot searches the specialist second charge market and shows you what's available for your situation.
⚡ Instant resultsExpert adviser handles it
A qualified adviser from Loan.co.uk reviews everything with you and handles the full application.
👤 FCA regulatedThe specialist second charge market, searched for you
We combine speed with expert advisers to find you the right deal at a lower cost.
Instant comparison
Thousands of plans compared in seconds, not days. AI-powered matching finds your best options fast.
Expert support
Qualified advisers at Loan.co.uk handle your application. They're authorised and regulated by the FCA.
Total transparency
All costs shown upfront. No hidden charges, no confusing small print.
No credit footprint
Checking your options uses a soft search. It won't show up on your credit file or be visible to other lenders.
Common questions about second charge mortgages
Everything you need to know before you borrow.
Is a second charge mortgage the same as a secured loan?
Yes. A second charge mortgage, a secured loan, and a homeowner loan are all different names for the same product. You borrow money secured against your property, and the loan sits alongside your existing mortgage. The terms are interchangeable.
Will my mortgage lender know about the second charge?
Yes. Your first charge mortgage lender must give consent for a second charge to be placed on the property. This is standard and rarely refused, though some lenders take longer than others to respond. Your adviser handles this process for you.
How is a second charge different from remortgaging?
A remortgage replaces your entire existing mortgage with a new one (potentially with additional borrowing on top). A second charge is a completely separate loan that sits alongside your existing mortgage without changing it. Choose a second charge when you want to keep your current deal, avoid early repayment charges, or borrow for a purpose your mortgage lender doesn't allow.
How much can I borrow with a second charge mortgage?
Typically from £10,000 up to £1.5 million or more. The amount depends on your property equity (value minus outstanding mortgage) and what you can comfortably afford. Your adviser will assess this based on your income, outgoings, and the property valuation.
What are early repayment charges, and how do I avoid them?
Early repayment charges (ERCs) are fees your mortgage lender charges if you repay or switch your mortgage before the fixed or discounted period ends. They can be thousands of pounds. A second charge mortgage avoids ERCs entirely because you're not changing your existing mortgage. You're taking out a separate loan alongside it.
What happens if I can't keep up repayments?
Your home may be repossessed if you do not keep up repayments on your mortgage. This applies to both your first charge mortgage and any second charge. Lenders will usually try to work with you if you're having difficulties, so contact them early if problems arise. Only borrow what you can afford.
How long does a second charge mortgage take to complete?
Typically 2 to 4 weeks from application to funds reaching your account. The process involves a property valuation, consent from your first charge lender, and legal work. Some cases complete faster, especially with straightforward applications. You'll see your options instantly with Albot.
Check your second charge options in 90 seconds
See what you can borrow without affecting your existing mortgage. No commitment, no credit check, no upfront fees.
Get my free quoteRepresentative Example (Second Charge Mortgages)
If you borrow £18,000 over 10 years, initially on a fixed rate for 5 years at 7.4% and for the remaining 5 years on the lender's standard variable rate of 7.9%, you would make 60 monthly payments of £249.27 and 60 monthly payments of £254.63. The total amount of credit is £19,657 (including a lender fee of £595 and a broker fee of £1,062). The total amount repayable would be £30,234. The overall cost for comparison is 10.42% APRC representative. This means 51% or more of customers receive this rate or better for this type of product.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Albot is an introducer and technology platform, not a lender and not a broker. Applications may be passed to Loan.co.uk Ltd, which acts as a credit broker, not a lender. Rates are subject to status, affordability checks and lender criteria.