A second charge mortgage is a separate loan secured on your home, behind your main mortgage. Enter the amount, rate and term to see the monthly repayment and the total cost over the deal.
Amount · rate · term
A second charge mortgage (also called a secured loan or homeowner loan) is a loan secured against your property, sitting behind your existing first mortgage. If the home is ever sold or repossessed, the first mortgage lender is paid first, then the second charge lender. Because the second lender takes more risk, rates are higher than a standard mortgage but usually lower than an unsecured personal loan.
| Loan | Rate | Term | Monthly |
|---|---|---|---|
| £25,000 | 9.5% | 10 yrs | £323 |
| £40,000 | 9.5% | 10 yrs | £518 |
| £40,000 | 9.5% | 15 yrs | £418 |
A second charge can make sense when you want to borrow a larger sum but don't want to disturb a cheap first mortgage — for example to fund home improvements, consolidate debt or raise capital. It avoids the early repayment charges or rate loss of remortgaging the whole loan. Compare the alternative with the remortgage calculator.
For smaller, shorter-term needs an unsecured personal loan may be simpler and doesn't risk your home. For short property-specific gaps, a bridging loan might fit better. Always compare the total cost across options, not just the monthly payment.
It's a loan secured on your home that ranks behind your main mortgage — letting you borrow extra without disturbing your existing first mortgage.
Yes — they're higher than a main mortgage because the lender ranks second, but typically lower than an unsecured personal loan.
It keeps your cheap first mortgage untouched — avoiding early repayment charges or losing a low rate — when you just need to raise extra capital.
Yes — it's secured on your home, so missing payments on either charge can lead to repossession. Only borrow what you can comfortably afford.
