Second charge mortgages

Providing innovative solutions as an alternative to remortgaging.

Since the implementation of the Mortgage Credit Directive on 21 March 2016, we have seen an increase in the number of enquiries received from our introducers. This has been as a direct result of the requirement for clients to be provided with details of the various products available to them for comparison as part of ‘best advice’ practices. Due to this, clients will now be able to compare the overall cost of a capital raising re-mortgage, with a second charge mortgage and a further advance, allowing them to be sure that the product recommended meets with their immediate needs, while also taking into account their future plans.

As specialists in second charge mortgages for both residential and buy to let properties, we can offer you and your clients peace of mind that the solution we provide will offer the best of what’s available through our diverse lender panel. Our comprehensive lender panel covers both prime and non-conforming lending solutions, including lenders not available on a direct to broker basis and some market-leading exclusive products.

What is a second charge mortgage?

The security for a second charge mortgage is the borrower’s existing home or investment property, and the loan is made in addition to the first charge mortgage. Second charge mortgages are an established part of the mortgage lending market and they can provide additional funds for clients looking to raise capital for a wide variety of purposes.

Types of mortgage covered within this division:

• Capital raising secured on residential and buy to let properties, by way of second charge.

Typical client scenarios

Your client:

• Wants to raise capital on BTL properties/across portfolios, without the time constraints of a re-mortgage.
• Wishes to avoid the ERCs that a re-mortgage would incur.
• Is looking to raise capital, but wants to retain their existing low rate.
• Has acquired some adverse credit history since taking out their main mortgage and is unable to find a re-mortgage deal.
• Wishes to keep the new mortgage separate from their main mortgage.
• Wants to pay off the second charge mortgage much sooner than the main mortgage.
• Wishes to receive the advance sooner than a standard re-mortgage could deliver.
• Has an interest-only main mortgage and wishes to retain it.
• Wishes to borrow beyond normal retirement age.
• Does not want to pay any upfront fees.

Available for a wide variety of purposes including:

• Raising a deposit for onward property purchases.
• Raising funds for business investment.
• Home improvements.
• Home improvements to main residence, while living at a separate address.
• Debt consolidation.
• Weddings.
• School/university fees.
• Holiday home purchase.
• Luxury purchases.
• Tax bills.
• Transfer of equity.

Residential properties criteria overview:

• Market-leading rates.
• Up to 95% LTV.
• £3k to £2.5m (more by referral).
• Lending in England, Scotland, Wales and Northern Ireland.

Buy to let properties criteria overview:

• Market-leading rates.
• Up to 85% LTV.
• £5k to £1m (more by referral).
• Interest-only options.
• Lending in England, Scotland, Wales and Northern Ireland.