Award-Winning Bad Credit Specialist · FCA No. 301173
Second Mortgage With Bad Credit 2nd Charge Lending Explained
The short answer
Can you get a second mortgage with bad credit? Yes. Second charge lending is often more accessible than remortgaging when you have adverse credit, because the lender is secured against equity you already hold. CCJs, defaults, DMPs and even discharged bankruptcy are routinely accepted. What matters most is how much equity you have and whether you can afford both payments.
What is a 2nd mortgage with bad credit?
A second mortgage — also called a second charge — is a separate loan secured against your home, running alongside your existing mortgage. Your first mortgage stays exactly as it is, which is why it appeals to people on a good fixed rate who don't want to remortgage onto today's rates.
How much can you borrow on a 2nd mortgage with bad credit?
Most second charge lenders will go to 75–85% of your property value including your existing mortgage. With more serious adverse credit that typically drops to 65–75%. So if your home is worth £300,000 with a £180,000 mortgage, you might raise £45,000–£75,000 depending on your credit profile and affordability.
Is a second mortgage with bad credit expensive?
Rates are higher than a first charge because the lender ranks behind your main mortgage if the property is ever sold. But it is often cheaper overall than remortgaging your whole balance onto a bad credit rate — particularly if your current mortgage is on a low fixed rate you'd lose.
Darryl Dhoffer
CeMAP · CeRER · FCA 301173 · ⭐ 48 Reviews
"I specialise in exactly this. Free assessment — no credit search, no obligation. I respond within 2 hours."
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.
Being declined feels personal. It isn't — banks use computers. Darryl uses judgement.
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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, The Intermediary and Daily Mirror. I have helped hundreds of people across the UK who were told no by their bank — and I work with 65+ 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.
CeMAPCeRERFCA 301173AWARD WINNINGINDEPENDENTWHOLE OF MARKET
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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FCA No. 301173
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Lender criteria, rates and deposit requirements quoted on this page are indicative and subject to change without notice. Individual circumstances vary. This page provides general information only and does not constitute regulated financial advice. The Mortgage Geezer is a trading style of Access Financial Services Ltd who are authorised and regulated by the Financial Conduct Authority. The Financial Services Register number is 301173. Registered in England No. 04427489. Registered office address Access Financial Services Ltd, Unit 1 Furtho Court, Towcester Road, Old Stratford, Milton Keynes, MK19 6AN. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP YOUR REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER LOAN SECURED AGAINST IT.