You could receive your loan in as little as 3 days!
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 9.69%, 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.
A second charge mortgage is an additional loan taken out on a property that already has a primary mortgage.
The lender uses the equity in your home as collateral. In the event that the loan cannot be repaid, the house will be repossessed. Because the second charge mortgage sits "behind" your main mortgage, the primary lender is always paid first if the property is repossessed and sold.
Second charge mortgages are often seen as the more appealing option for customers over remortgaging their entire property. This is typically because they can avoid hefty early repayment charges and / or preserve the interest rate on their original mortgage.
A second charge mortgage can be used for a variety of reasons, although they are commonly used to consolidate debts, make home improvements and purchase a buy to let property.
The interest rate of a second charge mortgage depends on various different factors, including the amount of money you are looking to borrow, the repayment term and your personal circumstances like your credit history.
Second charge mortgage rates are usually lower than other forms of borrowing such as an unsecured loan, this is because the money is secured against your home.
Most lenders will complete a soft and hard credit search to understand how much you could afford and your financial circumstances. Interest rates are likely to be higher for someone that has bad credit. This is because they are considered more of a risk due to their financial history.
However, as a specialist lender with flexible criteria we can help people with complex financial circumstances.
All applications, whether you have good or bad credit are considered on an individual basis - whatever your credit profile, we will do our best to help you get the secured loan you need.
At Central Trust, we will always give you the best possible interest rate. We will only ever recommend a product that meets your needs and circumstances, to ensure that you can afford to repay each month.
Second charge mortgages can have two different types of interest rates, a fixed rate or a variable rate. It’s important to understand how interest rates work and how they can affect you.
The rate you are charged by your mortgage lender will determine how much your monthly repayments will be, which also affects the amount you will pay back overall.
A fixed interest rate means you are charged a fixed amount every month throughout the term the fixed rate period. This means that your monthly repayments are always a set amount, unlike a variable rate.
Because of this, fixed rates are often considered a safer option. It can be useful to know exactly what you are required to pay each month, making budgeting easier.
A secured loan with a variable interest rate means that the rate you receive when taking out the loan is subject to change. The interest rate changes when the Bank of England base rates changes, therefore some months your repayments could cost more than others. Equally, you may end up with a lower rate with a lower monthly repayment.
This does also mean that if interest rates increase you could end up repaying a lot more than you originally budgeted for. If you are unsure about being able to afford increased repayments, or you want the certainty of a fixed repayment amount, a fixed interest rate may be the best option.
A second charge mortgage is another name for a loan secured against your home. These loans are taken out in addition to your first mortgage, hence “second charge”.
A second charge mortgage is a loan that is secured against the equity in your property. These are often referred to as secured loans or homeowner loans.
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 mortgage, away from the value of your home.
Your home acts as a form of security for 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 loans would be secured against your property.
The cost of a second charge mortgage depends on various factors like the interest fee and product/lender fees.
As well as your repayment term, the interest rate you are offered will determine how much your monthly payment will be. This will affect the amount you will pay back overall.
Second charge mortgage rates are usually lower than on other forms of unsecured loan. This is because unsecured loans do not require you to use an asset as security.
Like other types of loans there are fees that come attached. The most common types of fees are arrangement fees (also known as lender fees), broker fees and early repayment fees.
As a direct lender we don’t charge a broker fee, only a lender fee applies. This also means that by going direct with us there are no middle men involved and we can provide you with a lender decision quickly.
There are various different factors you should consider when taking out a second charge mortgage.
Taking out a second charge mortgage means that you will be securing your loan to your property. By doing so, you are proving to the lender that you can and will be able to pay them back.
It’s therefore important to understand the risks that are associated with this type of loan. If you fail to make your monthly repayments, the lender has the right to repossess your property. However this is usually the last resort.
Before taking out a second charge mortgage it’s important that you assess your finances. Although your lender will complete affordability checks, you should also ensure that you can afford to make the monthly repayments over the term of the mortgage.
Lenders will still check your affordability regardless of your credit score. They will ask questions about your finances to better understand your circumstances. It’s likely that they will complete a hard and soft credit search at some point of your application. This may influence their decision as to whether or not they can lend you the money.
All lenders have their own criteria so their questions may differ. However most lenders will look at your income, other loans you are currently paying off, the equity in your home and your monthly expenses.
A second charge mortgage can be used for a variety of reasons, although they are commonly used to consolidate debts, make home improvements and purchase a buy to let property.
Typically, they are used by those with poor credit profiles. This is because the loan is secured against your property, which means there is less risk involved for the lender.
Unsecured loan lenders may not be able to help at all, or the rate may be significantly higher in comparison to a secured loan. Often with an unsecured loan they are unable to help people with poor credit profiles, this is because there is more risk involved as they don't have the security of an asset.
If you are looking to borrow a larger amount of money, a second charge mortgage might be the best option. With a second charge mortgage you can typically borrow more money over a longer term in comparison to an unsecured loan, due to the security of your property.
Fast and Simple Process
You could access funds within days by calling our team directly or enquiring online.
Over 35 Years’ Experience
We are one of the UK's longest established specialist lenders, so you can relax knowing you're dealing with an experienced team.
Authorised and regulated by the FCA
We are committed to responsible lending, clear communications and good customer outcomes throughout the borrowing journey.
Your Loan,
Tailored for You.
Consolidating debt? Paying for a large expense like home improvement or a wedding? We have you covered.
Unlike many other lenders, there is no strict automation to our lending decisions. Your application is assessed by our team, not by a computer.
Stephen Stone
2 years ago
Incredible company. Empathetic and supportive staff that know how to offer customers a package that suits them. I was fed up with automated systems from the standard banks. This company talk to you and help you find something to suit your circumstances. I cant thank them enough for how they helped me
Greg Erasmus
3 years ago
When I contacted Central Trust I had a very strict deadline to make a payment. Jenny was extremely helpful and informative and got the process started straight away. The whole way through I was kept informed at every stage of my application and any hiccups was swiftly dealt with. I can't thank Jenny, Tara and Stephanie enough for their help and professional service. Highly recommend.
Edward Mawby
3 years ago
I originally left a review that said I was not satisfied with the service provided, however after being in touch with Tara I felt she tried her best to get the answer we wanted. Unfortunately it didn't work out, but she left us feeling optimistic that we can go back in a couple of months time to try again. Thank you for doing your best to help!
Anglela Ferrante
3 years ago
What an absolute delight of a company. Following setback created by the mini budget, I was left in a predicament, central trust came to the rescue and provided an excellent swiftly process. I would highly recommend using them. I dealt with Jenny who couldn’t of been more proactive and helpful.
Gwenda Squire
6 years ago
Really friendly, professional service. Completed within a matter of days. Would highly recommend
David Cutler
6 years ago
Mostly good, gave me the wrong return address for a form that needed a signature witness which meant the form was lost and I had to go through the hassle of finding a witness again. Asked me to send a settlement figure which they had already received from me and had acknowledged receipt. But on the whole much more efficient, faster and more communicative than the bank who I applied to borrow the money from.
S RC
6 years ago
John Holden
6 years ago
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:
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.
Share
One of our qualified advisors will call you to discuss your enquiry and work out a monthly payment that meets your needs and circumstances.
Complete
We'll help you complete the paperwork and any other supporting documentation required. Everything can be completed electronically, or on paper if you prefer.
Ready to enquire?
Call an advisor free on:
0800 980 6273
What second charge mortgage rates do you offer?
The rate you are offered on a second charge mortgage will depend on your personal circumstances such as your credit history, and takes into consideration criteria requirements and loan term. As with any representative APR, the rate you're offered may differ from our advertised rate depending on your circumstances. Lenders that have stricter criteria and do not accept poor credit will likely have a lower rate than those lenders that accept applicants with poor credit.
Lenders with stricter lending criteria, who don't accept applicants with poor credit, will typically offer a lower rate than those who do. This is because applicants with a good credit history are considered lower risk, and lower-risk lending allows lenders to offer more competitive rates.
How do you calculate your rates?
The rate we offer you is based on a range of factors, including your personal circumstances, such as your credit profile, income and debt-to-income ratio, as well as the details of the loan, including the amount you borrow and the loan term.
Our Representative APR is displayed at the top of each loan landing page and provides an indication of the typical cost of borrowing for that product. However, the rate you are offered may be higher or lower than the Representative APR, depending on your individual circumstances and the details of your application.
What is the difference between fixed and variable rates?
A fixed interest rate means you are charged a fixed amount every month throughout the term the fixed rate period. After the fixed term is up, you will potentially be able to refinance. A fixed interest rate also means that your monthly repayments won’t change, unlike a variable rate. Fixed rates are often considered a safer option, particularly in times of uncertainty. It can be useful to know exactly what you are required to pay each month, making budgeting easier.
A secured loan with a variable interest rate means that the rate you receive when taking out the loan can change. The interest rate changes when the Bank of England base rates changes, therefore some months your repayments could cost more than others. Equally, you may end up with a lower rate with a lower monthly repayment.
Why take out a second charge mortgage?
A second charge mortgage can help you borrow more, secure a lower interest rate, or even work around a poor or bad credit history. It's a flexible source of borrowing that people use for a range of purposes, including:
As with any second charge borrowing, it's worth remembering that your home is used as security. If you're unable to keep up with repayments, you could be putting your home at risk, so it's always worth making sure any new borrowing is comfortably affordable before you go ahead.
How do I enquire about a second charge mortgage?
Enquiring about a second charge mortgage 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.
Are second charge mortgages a good idea?
Yes, particularly if you're using one to consolidate other debts or replace higher-interest borrowing with a lower rate or more affordable monthly repayments. Using the equity in your home to reduce your overall costs or debt can make sense — but only if you're confident you can afford the new repayments, since your home is at risk if you can't.
Do I need a solicitor for a second charge mortgage?
No — a solicitor isn't required for a second charge mortgage application. That said, it's always worth researching any loan thoroughly and making sure it's comfortably affordable before committing. Budgeting responsibly and having a plan in place for how you'd cope in case of financial difficulty is good practice with any secured borrowing.
Can a mortgage company refuse a second charge?
Yes. A lender can refuse a second charge loan or mortgage if they judge that approving it could leave them exposed to a loss on the property — most commonly, if you're trying to borrow more than the equity available supports. This is part of a lender's broader responsibility to lend responsibly and look out for your interests, not just their own risk.
Beyond equity, a lender may also decline a second charge application on grounds like affordability or credit history.
If you're unsure how much equity you have, you don't need to work this out yourself — the new lender should be able to check this for you as part of the application process.
Are second charge mortgages regulated?
Second charge mortgages are regulated by the Financial Conduct Authority (FCA). The exception is investment properties that the owner doesn't live in themselves; a second mortgage raised against a property like this falls into the "non-regulated" category instead.