Keep the first mortgage
The existing mortgage usually stays in place, which can be useful where it has a competitive rate or a significant early repayment charge.
Second charge and homeowner loans
Borrow against available property equity while leaving your existing mortgage in place. We compare secured-loan options, costs and risks against possible alternatives.
Borrowing behind your mortgage
A secured loan, often called a second charge mortgage or homeowner loan, is borrowing secured against a property that already has a first mortgage. The existing mortgage normally remains in place, while the secured loan has its own rate, term, fees and monthly payment.
This route may be considered when you want to retain an existing mortgage deal, an early repayment charge makes remortgaging less attractive, or your circumstances fit specialist second charge criteria. The overall cost and the effect of securing additional borrowing against your home must be carefully assessed.
The existing mortgage usually stays in place, which can be useful where it has a competitive rate or a significant early repayment charge.
The available amount depends on the property value, first mortgage balance, affordability, credit profile and lender loan-to-value limits.
The secured loan has its own repayment, fees, product features and early repayment terms, which may differ from the first mortgage.
Subject to lender criteria and advice, funds may be considered for home improvements, debt consolidation or another acceptable purpose.
Make an informed comparison
Both routes use property as security, but they affect the existing mortgage differently. The comparison should include monthly cost, total repayable, fees and flexibility.
A secured loan normally leaves it unchanged. A remortgage repays and replaces it, which can affect the rate on the entire mortgage balance.
Keeping the first mortgage may avoid redeeming it, but the secured loan will have its own early repayment terms and charges.
A secured loan can have a higher rate than a first mortgage, but remortgaging may reprice a much larger balance. A full cost comparison is essential.
Timescales vary by lender, valuation, legal work, consent requirements and the complexity of the application.
The advice process
We gather the relevant facts, compare suitable routes and explain the costs and risks before you decide whether to proceed.
We confirm the property value, first mortgage balance, current deal and any early repayment charge.
We discuss the amount required, intended use, preferred term, income, commitments and credit history.
We consider secured-loan options and, where relevant, whether a remortgage or another solution should also be reviewed.
If you proceed, we help with documents, valuation, lender requirements and communication through to completion.
Use the enquiry page and select the option closest to your plans. An adviser can clarify the route after reviewing the initial details.
Useful next steps
Common questions
The terms are commonly used for the same type of borrowing: a separate loan secured behind the existing first mortgage on the property.
The amount depends on property value, mortgage balance, income, expenditure, credit history, loan purpose and the lender’s maximum combined loan-to-value.
Some specialist lenders consider applicants with missed payments, defaults or county court judgments. The details, dates, amounts, current conduct, affordability and equity affect eligibility and pricing.
Potentially. Eligible debts may be repaid using secured borrowing, but unsecured debts then become secured against your home. A lower monthly payment can also increase the total amount repaid if the term is extended.
Some first-mortgage terms or secured-loan lenders require consent or notice. The adviser and lender will check the title, mortgage conditions and any restrictions.
Possible costs include lender, valuation, legal and broker fees. Fees may be paid upfront, deducted from the advance or added to the loan, depending on the arrangement.
Complete the short enquiry so the team can understand what you are looking to achieve and direct you to an adviser experienced in that area.
Think carefully before securing debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it. Consolidating debts may reduce monthly payments but can increase the total amount repayable.