Second Charge
A second charge mortgage is a loan that’s secured against your home, just like your main mortgage — but it’s a second loan on top of your existing mortgage.
In simple terms:
You already have a mortgage on your home.
A second charge mortgage lets you borrow more money, using the value in your home as security.
You don’t replace your current mortgage — you just add a second one alongside it.
Why people use it:
To raise money for things like home improvements, debt consolidation, or business costs
When they don’t want to change their main mortgage (for example, if it has a good interest rate or early repayment fees)
Key things to know:
Your home is still at risk if you don’t repay, because both mortgages are secured on it
You usually need to have equity in your home (the value of your home minus what you still owe on your main mortgage)
Interest rates may be higher than your first mortgage
Summary:
A second charge mortgage is a second loan secured on your home, used when you want to borrow more money without changing your current mortgage.