Second Charge Mortgages
Second Charge
Mortgage Rates
Borrow against your home equity without touching your existing mortgage. Compare second charge mortgage rates from 6 UK lenders — rates from 6.34%.
Last updated: March 2026
Quick Answer
A second charge mortgage is a loan secured against your property that sits behind your existing first mortgage, allowing you to borrow against the equity in your home without remortgaging. Your current mortgage rate and deal remain completely unaffected, which is the main reason homeowners choose this option over a full remortgage. People typically take out a second charge to avoid early repayment charges on a good existing mortgage deal or to keep a competitive fixed rate they would otherwise lose by remortgaging. You can borrow from £3,000 to £500,000 with rates typically between 6–12% APR. The process is significantly faster than remortgaging, usually completing in 3 to 6 weeks compared to 6–12 weeks for a remortgage. Second charge mortgages are fully FCA-regulated and are functionally identical to secured loans and homeowner loans — simply different names for the same financial product.
What Is a Second Charge Mortgage?
A second charge mortgage is a loan secured against your property that sits behind your existing (first charge) mortgage. It allows you to borrow against the equity you've built up in your home — the difference between your property's value and your outstanding mortgage balance.
The term "second charge" refers to the lender's position in the event of repossession. Your primary mortgage lender would be repaid first, then the second charge lender. Because of this subordinate position, second charge rates are typically slightly higher than first charge mortgage rates — but significantly lower than unsecured borrowing.
Second charge mortgages are functionally identical to secured loans and homeowner loans — different names for the same product. They are fully regulated by the FCA under the same rules as first charge mortgages.
When Is a Second Charge Better Than Remortgaging?
A second charge mortgage is often the better choice when:
- You're locked into a good mortgage rate — remortgaging would mean losing a competitive fixed or tracker deal
- Early repayment charges apply — leaving your current mortgage early could cost thousands
- You need funds quickly — second charges typically complete in 3–6 weeks vs 6–12 weeks for a remortgage
- Your credit has changed — if your credit score has dropped since taking your mortgage, remortgaging might mean a worse rate on your entire borrowing
- You only need to borrow a smaller amount — it doesn't make sense to restructure your entire mortgage for a £20,000 loan
| Second Charge Mortgage | Remortgage | |
|---|---|---|
| What it is | A separate loan secured behind your existing mortgage | Replacing your entire mortgage with a new, larger one |
| Your current mortgage | Stays exactly as it is — same rate, same deal | Replaced entirely — you lose your current rate/deal |
| Early repayment charges | None on your existing mortgage | You may face ERCs if still in a fixed/tracker deal |
| Rates | Typically 6–12% (higher than first charge) | Typically 4–6% (lower but replaces whole mortgage) |
| Speed | Usually 3–6 weeks to complete | Usually 6–12 weeks to complete |
| Best for | Raising capital while keeping a good mortgage deal | When your current deal has ended or rates are lower |
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