Award-Winning Bad Credit Specialist · FCA No. 301173
Second Charge Mortgage With Bad Credit Secured Lending Explained
A second charge mortgage lets you borrow against your property equity without remortgaging. Available even with bad credit but needs careful consideration. Darryl Dhoffer explains all.
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Second Charge Mortgages and Bad Credit
A second charge mortgage also called a secured loan allows you to borrow against the equity in your property while keeping your existing first mortgage in place. For people with bad credit who need to raise money a second charge can sometimes be an alternative to remortgaging particularly if your existing mortgage has early repayment charges or a very low rate you do not want to lose.
Second charge mortgages are secured against your home so your property could be repossessed if you cannot keep up repayments. Specialist advice is essential before proceeding.
Darryl Dhoffer — The Mortgage Geezer
20+ years in mortgages. Award-winning specialist. Featured in the Daily Express, FT Adviser and The Intermediary. I have helped hundreds of people across the UK who were told no by their bank — and I work with 90+ lenders including specialist adverse credit lenders you will not find on comparison sites.
When you contact me, you speak to me directly. No call centres. No being passed around. I personally review every case and respond within 2 hours.
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Frequently Asked Questions
What is a second charge mortgage? ›
A second charge mortgage also known as a secured loan or homeowner loan is a loan secured against your property in addition to your existing first mortgage. You retain your current mortgage and take out an additional loan against the remaining equity. Second charge lenders have a second charge over the property and would be repaid after the first mortgage lender in the event of repossession.
Can I get a second charge mortgage with bad credit? ›
Yes. Specialist second charge lenders are often more flexible than first mortgage lenders when it comes to adverse credit. Because the loan is secured against property with existing equity the risk to the lender is lower. Darryl Dhoffer has access to specialist second charge lenders and will identify the most suitable options for your specific credit history and equity position.
Is a second charge mortgage a good idea with bad credit? ›
It depends on your specific circumstances. Advantages include keeping your existing first mortgage intact if it has favourable terms and access to equity without full remortgage costs. Risks include higher rates than first charge mortgages two secured loans on your property and the risk of repossession if you cannot meet both payments. Darryl will help you assess whether a second charge is the right solution.
How much can I borrow on a second charge mortgage with bad credit? ›
The maximum borrowing on a second charge is limited by your available equity. Most second charge lenders will lend up to 75-85% of the property value combined including first and second charge. With bad credit the maximum LTV may be lower. Darryl will calculate exactly how much you could borrow based on your property value existing mortgage and credit profile.
What can I use a second charge mortgage for? ›
Second charge mortgages can be used for home improvements debt consolidation funding major purchases business capital and many other purposes. When used for debt consolidation the overall cost needs careful assessment as converting unsecured debt to secured debt reduces monthly payments but extends the repayment period and puts your home at risk.
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darryl@themortgagegeezer.co.uk
FCA No. 301173
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The Mortgage Geezer is a trading style of Access Financial Services Limited, authorised and regulated by the FCA No. 301173. Your home may be repossessed if you do not keep up repayments on a mortgage.
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