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Second Charge Mortgages

A Second Charge mortgage can be an ideal way to raise funds from existing property, but gaining access is not so simple, even for intermediaries. Vantage Finance can help you with a wealth of experience and access to lenders, to ensure the best fitting Second Charge mortgage for your client.


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Why Vantage?

Second Charge mortgage applications can be complicated, but we take pride in making it simple. With years of experience and understanding of the Second Charge market – we see beyond the complexities and focus on a quick, successful completion. Vantage Finance will provide you with one point of contact throughout to find the best fitting Second Charge mortgage for your clients, including those with:

  • Adverse credit
  • Competitive interest rates they don’t want to lose by remortgaging
  • High Early Redemption Charges (ERCs) on their existing mortgage
  • No option to raise funds needed through remortgaging

Key features

  • Loan can be used for any legal purpose
  • Self-employed applicants considered under the same criteria as those who are employed
  • Up to 95% LTV (includes first mortgage balance and ERCs where applicable)
  • In some instances, we can cover the cost of the client’s valuation
  • Interest only available
  • Low early redemption fees
  • Adverse credit can be considered

Frequently asked questions

The basics

What is a Second Charge mortgage?

A Second Charge mortgage enables borrowers to use existing equity in the property as collateral for the loan. This type of mortgage is also referred to as a secured loan. As it is a Second mortgage, it leaves the existing 'First Charge' mortgage in place.

What are the main benefits of a Second Charge mortgage?

  •  Flexible

Maybe the borrower is self-employed and lending criteria have tightened since they took out their first mortgage. Or perhaps they’re credit-impaired, at the salary multiple limit.

  • Fast

Second Charge mortgages can complete quickly. This can be days or weeks. Typically, 4-6 weeks.

  • Functional

There are cases where a Second Charge might also be appropriate. For example, they can sometimes simply prove cheaper than remortgaging – particularly if your client faces heavy early repayment charges.

What reasons might a client apply for Second Charge mortgage?

Second Charge mortgages are taken out by mainstream borrowers for a whole host of reasons including:

  • Home improvements
  • Second property deposits
  • Tax debt repayment
  • Business finance
  • School fees

Criteria

Which type of property can a Second Charge mortgage be secured against?

Main residence

  • Most property types considered. Properties of non-standard construction may affect Loan-to-Value.

Buy -to-Let

  • Most property types considered. Properties of non-standard construction may affect Loan-to-Value.

Who can apply?

Main residence
All parties on Land Registry must be party to the application. However, there can be additional borrowers on the mortgage not listed on Land Registry.

  • Personal names

Buy-to-Let
Applicants to match Land Registry.

  • Personal names
  • Limited companies
  • LLP
  • Most entities considered

How much can my client borrow?

Main Residence
  • Minimum loan - £3,000
  • Maximum loan - on referral, anything (LTV dependant)

Buy-to-Let

  • Minimum loan - £10,000
  • Maximum loan - on referral, anything (LTV dependant)

Terms

Does my client pay any initial costs on a residential mortgage?

Main residence
  • All fees can be added to the loan, the only exception being where the loan is for business purposes and goes with a lender that would consider this unregulated, in this case, we would charge a valuation fee upfront.
Buy-to-Let
  • Valuation fee payable on instruction

Application process

How long before I’m in a position to tell my client if we can proceed with their application?

This depends on what level of comfort you are looking for.  We can provide an initial ‘Yes this fits criteria, the credit search is ok, DIP etc…’  however, if you would like lender confirmation, this varies lender to lender - some will not review until we have everything including valuation report.

How long will an application take to complete?

Again,  this will vary from lender to lender. We usually say 4-6 weeks, as consent can sometimes take a while, however these have been done in 7-14 days where everything was in place really quickly.

Fees and repayments

What is the repayment term on a residential mortgage?

Main residence

  • 1 year to 35 years

Buy-to-Let

  • 4 years to 30 years

Are residential mortgages interest-only on repayment-based?

Both available on both

Mortgages as unique as your clients

Whatever their situation, secure your clients a second charge mortgage today.