First Charge Mortgages
You could receive your loan in as little as 3 days!
Borrow up to £250,000
Flexible terms from 3-30 years
We consider all credit histories
Employed, self employed, pension and benefit income
We're a direct lender, so there are no hidden broker fees
Representative Example: A secured loan of £31,000 payable over 7 years on a fixed rate of 9.83% for the first 5 years, followed by a variable rate, currently 09.69%, would require 60 monthly payments of £553.17 followed by 24 monthly payments of £552.39. The total amount repayable would be £46,447.56, this includes interest, an arrangement fee of £1,999 and a processing fee of £499. The overall cost for comparison is 13.1% APRC representative.
How it works
Organising your finances can sometimes feel stressful, but we want to make it as easy as possible for you.
In just 3 simple steps you could have the money in your bank account. All you need to do is:
1: Enquire
Complete our quick and easy online enquiry form. Alternatively, you can speak to an advisor instantly by calling us or starting a live chat.
2: Discuss your details
One of our qualified advisors will call you to discuss your enquiry and work out a monthly payment that meets your needs and circumstances.
3: We'll guide you through the process
We'll manage the process, keeping you updated and letting you know when additional documents, information, valuations, or security checks are required. Receive your loan in as little as 3 days!
What do our customers say?
You can relax knowing you’re working with a highly rated team. But don’t just take our word for it, visit our website and read our reviews – they speak for themselves.
What is a first charge mortgage?
A first charge mortgage is a type of secured loan that is tied directly to a property. It is usually the primary mortgage on a home or property. The lender providing the mortgage holds the first legal claim (or “charge”) over the property if the borrower fails to repay the mortgage.
Most people encounter a first charge mortgage when they purchase a home. The lender registers a legal charge against the property with the Land Registry, giving them the right to reclaim the outstanding balance by repossessing and selling the property if the borrower defaults.
First charge mortgages typically involve larger borrowing amounts and longer repayment periods, often ranging from 10 to 35 years. The mortgage is repaid in regular monthly instalments that include both the borrowed amount and interest, unless it is an interest-only mortgage.
Please be aware: Our first charge mortgage products are available for remortgages and capital raising against unencumbered properties. We do not currently offer mortgages for property purchases.
What can a first charge mortgage be used for?
First charge mortgages are most commonly used for purchasing property, but they can also be used for other major financial purposes where a property is used as security.
Common uses include:
- Remortgaging - replacing an existing mortgage with a new first charge mortgage, often to secure a better interest rate
- Property improvements - funding major renovations or extensions that may increase the property’s value
- Debt consolidation - combining multiple debts into a single secured mortgage with potentially lower monthly payments
- Large personal expenses - such as funding education, major life events, or large purchases.
Because the mortgage is secured against property, lenders usually assess factors such as property value, income, credit history, and affordability before approving the mortgage.
Risks associated with a first charge mortgage
Because the lender is first in line to be repaid, any missed payments can lead to home repossession. Other major risks include negative equity, long-term debt, and steep early repayment charges.
Risk overview:
- Property repossession: Failure to maintain mortgage repayments may result in the lender repossessing and selling your property.
- Negative equity: If your property's value falls below the outstanding mortgage balance, it may be difficult to sell or remortgage without incurring a loss.
- Interest rate increases: If your mortgage has a variable interest rate, increases in rates may lead to higher monthly repayments.
- Affordability changes: Changes in your financial circumstances could affect your ability to meet mortgage payments.
- Early Repayment Charges: Repaying or refinancing the mortgage early may result in additional fees.
- Limited remortgage options: Changes in lending criteria, property value, or your financial circumstances may restrict your ability to remortgage.
- Credit rating impact: Missed or late payments may negatively affect your credit profile.
- Secured lending risk: As the mortgage is secured against your property, your home may be at risk if you fail to meet the terms of the agreement.
Why choose Central Trust?
35 years' experience
We are one of the UK's longest established specialist lenders trading since 1988 giving us over 35 years' experience providing secured loans, homeowner loans and second mortgages.
Simple application process
You can call our team directly on 0800 980 6273 (Mon-Thursday:8:00am-6:00pm and Friday:8:00am-5:00pm) or you can enquire online at any time using our quick and easy online form.
All credit considered
We understand that life happens and there's more to your story than your credit score or recent pay slip. So if you have a less than perfect credit score we could still help.
What are the differences between a first charge and second charge mortgage?
A first charge residential mortgage is typically used to purchase a property. In contrast, a second charge mortgage is an additional loan secured against the same property. In both cases, the property serves as collateral, meaning it can be used to recover the debt if the borrower fails to maintain repayments.
A second charge mortgage is another name for a loan secured against the equity in your property. These mortgages are taken out in addition to your first mortgage, hence “second charge”.
The amount you can borrow relies on the available equity that’s in your home. This is what’s left when you subtract what’s outstanding on your current mortgage, away from the value of your home.
Your home acts as a form of security for second charge lenders if you are ever unable to keep up with the monthly repayments. This therefore means if you don’t own a property, you are unable to take out this type of loan.
With a second charge mortgage you would essentially be borrowing a second line of money in addition to your current mortgage. Therefore, two mortgages would be secured against your property.
Case studies
Home improvement loan
For an applicant with poor credit history.
Secured loan
For a self-employed client with limited trading history.
Debt consolidation
For an applicant with multiple lines of credit.
Is a first charge mortgage a good idea?
There are different factors to consider before taking out a first charge mortgage. Ultimately, it’s important to make sure the mortgage is affordable and suitable for your long-term financial situation. Borrowers should consider their income, future financial stability, and the potential impact of interest rate changes before committing to a mortgage secured against their home.
While first charge mortgages are a common way to finance property, they do carry some risks.
Pros:
- Because the lender has priority over the property, first charge mortgages generally offer lower interest rates compared to other forms of borrowing, such as personal loans or credit cards.
- The mortgage is secured against the value of the property, reducing the lender’s risk. This can mean more affordable monthly payments and lower overall interest costs throughout the life of the mortgage.
- First charge mortgages can be easier to obtain for borrowers with a strong credit history and reliable income. These mortgages allow buyers to spread the cost of purchasing a home over a longer period, helping to make home ownership more manageable and accessible.
Cons:
- If the mortgage has a variable interest rate, monthly payments may increase if interest rates rise.
- If property values fall, you could end up owing more than your home is worth, which can make selling or remortgaging difficult.
- Because the mortgage is secured against your home, missing repayments could lead to the lender repossessing and selling the property to recover the debt.
If you want to find out what rate you could get on a first charge mortgage, click enquire now to begin.
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Friendly UK based advisors
Enquiring won't affect your credit rating
Fast turnaround times 7-10 days is possible
No phone menus - immediate contact from our advisors
We are a direct lender, so we'll work with you from start to finish
FAQ's
First charge mortgages are most typically used for buying a home.
Because the lender has priority over the property, first charge mortgages generally offer lower interest rates compared to other forms of borrowing, such as personal loans or credit cards.
The mortgage is secured against the value of the property, reducing the lender’s risk. This can mean more affordable monthly payments and lower overall interest costs throughout the life of the mortgage.
First charge mortgages can be easier to obtain for borrowers with a strong credit history and reliable income. These mortgages allow buyers to spread the cost of purchasing a home over a longer period, helping to make home ownership more manageable and accessible.
Enquire for a first charge mortgage, it is a straightforward process, which can be completed online by following our application process or by calling one of our qualified advisors using the number at the top of this page.
Our advisors will be able to discuss your enquiry and establish whether or not we can help secure the funds you need.
First charge mortgages can be suitable in some situations, particularly for consolidating existing debt into a single loan that may offer lower interest rates or more manageable monthly repayments. However, because your home is used as security, it is important to carefully consider affordability and long-term costs.
If repayments are not maintained, your home could be at risk, so it should only be considered if you are confident you can sustain the new payment structure.
Because the mortgage is secured against your home, missing repayments could lead to the lender repossessing and selling the property to recover the debt.
First charge mortgages usually last between 20 and 35 years, meaning borrowers need to be confident they can keep up with repayments over a long period.
If the mortgage has a variable interest rate, monthly payments may increase if interest rates rise.
If property values fall, you could end up owing more than your home is worth, which can make selling or remortgaging difficult.
No. A solicitor will not be required for a second charge mortgage application. However we would always recommend researching any loan thoroughly and making certain that it is comfortably affordable. Always budget responsibly, and ideally have a plan of action in case of financial difficulty.
Yes. Your mortgage lender is allowed to refuse a first charge loan or mortgage against your property if they feel it would make them lose money on the sale if they should ever need to repossess it. Generally, this would only happen if you were trying to borrow more money that what was available in equity.
You should always make sure you have enough equity in a property before applying for a first charge mortgage or loan. However if you are unsure, the lender should be able to check for you. It’s worth noting that a lender could also refuse a first charge on other grounds such as affordability and credit history.
Yes. In the UK, most residential first charge mortgages are regulated by the Financial Conduct Authority (FCA).