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Can I get a second charge mortgage?

You can get a second charge mortgage to raise funds for any legal purpose with our help.

The only borrowing we cannot help with is a property you are living in, or will live in soon. You would need a regulated second charge mortgage or loan for this, which we do not broker.

The loan to value (LTV) on your existing borrowing must be low enough to allow you to borrow up to the maximum LTV on the second charge finance you need.

The maximum loan to value thresholds offered by second charge lenders, from across the market, are below:

Maximum loan to value

The maximum loan to value you can get, once a second charge on a property is in place is:

  • Property with a buy to let mortgage, up to 75% LTV
  • Property with a commercial mortgage, up to 65% LTV

Factors that may affect your application

  • Your first charge lender does not allow it.
  • You don’t have enough equity to borrow against.
  • Some extreme instances of adverse credit.

As a specialist broker, we are in the perfect position to get you the borrowing you need, so chat to our team and we will see what the most cost effective solution for you is.

Don’t worry if you feel your credit profile is an issue, we will guide you on this and some lenders can still help.

Today's second charge mortgage rates

We’ll need to chat to you to understand the type of property you are borrowing against and your circumstances, before we can give you an interest rate.

It’s easy to find out rates with a call straight through to an advisor on the freephone number above, or request a call-back here.

Eligibility for a second charge mortgage

  • First time buyers to experienced landlords
  • You must be over 18 years old
  • There must be available equity in the property
  • You can borrow in personal name or via a limited company
  • Low personal incomes are accepted
  • Property, pension and employment income is OK
  • Ready to get started?

    Your personal advisor will call. Direct lines start 01603. Get today's rates, help, or apply. Lender terms provided in as little as two hours!

Why use a second charge mortgage?

There are a few reasons why a second charge mortgage could be the ideal borrowing solution for your needs. These include: wanting to borrow more:

  1. When your current lender can’t help
  2. When you don’t want to remortgage away from a low rate
  3. When Early Repayment Charges (ERC’s) still apply, so you don’t want to remortgage

A second charge can be a useful borrowing tool in all of these circumstances, but remember, you are ultimately increasing your debt. Don’t do this if you cannot afford the payments, as your property is at risk of repossession.

Some lenders will not allow you to take out extra borrowing with another lender in addition to the money they have lent you.

How much can I borrow?

The maximum loan to value on a second charge mortgage for a buy to let (a rental property someone will live in) is 75% of the property value.

If your security property is a commercial premises (a property a business occupies) then you can borrow up to a maximum of 65% LTV. Commercial property is more complex and as such carries more risk, which is why the LTV is lower.

Second charges versus further advances

If you want to borrow more money on a rental property or commercial premises, you could get what is called a ‘further advance’ from your existing lender. This is where they will agree to lend you more money than you currently owe them.

This extra cash is not added to the same pot as your existing borrowing as such, it is subject to a different mortgage rate. If you went on to remortgage the full amount, the two cash pots would then go back into one loan.

Given the lender already has a relationship with you as a borrower, further advance rates tend to be lower than second charge rates.

When your current lender can’t help

There are reasons why your existing lender might not be able to offer you a further advance. The most common are:

  • You want to borrow over the lender’s maximum loan to value
  • The rent your property receives doesn’t fit with the lender’s affordability calculation
  • When you apply for a further advance your property is valued at a lower amount than expected

In these circumstances a second charge mortgage may be a good option. A second charge lender might have a higher loan to value cap, or have a more flexible affordability calculation which means you can get the borrowing you need.

When you have a low interest rate you don’t want to touch

If your existing borrowing is on a fantastic low interest rate and your monthly payments are very cost effective, but you want to raise more money, a second charge could be the ideal answer.

Mortgage rates change all the time. Whilst you may recently have taken out a mortgage or loan, or are even a year or two down the track, refinancing may not be cost effective now as it was when you last applied.

Second charge borrowing is entirely separate from the first mortgage or loan on your property (the ‘first charge’ on your property). Unlike a remortgage, you do not pay back what you owe and then borrow more. You simply leave your existing loan in place and take out another one.

Then your options are to either repay the extra borrowing over the term, or, when you do come to refinance, increase your borrowing to cover the first and second charge borrowing and bring the two amounts back into one mortgage.

Some borrowers find it helpful to take repeated second charges.

For example, say you are building a portfolio and start with one property, you have invested at a low loan to value to get a preferential mortgage rate, but a great deal on a property comes up and you want to raise a deposit.

You could take out a second charge to fund the purchase, keep the rental income in savings, then repay the second charge when you get to the end of, say, a two year fixed rate buy to let and refinance. Having put the rental income back into the property, you keep to your low LTV and can take out another second charge for another purchase when you next see a great property deal.

When an Early Repayment Charge applies

Early Repayment Charges (ERCs) apply if you are within the initial rate period of a mortgage. This is during the first two to five years, when you would be charged extra costs if you paid back the loan early and remortgaged to another deal.

Given these extra costs, it is unlikely to make financial sense to remortgage. But, if you still need to raise money, a second charge mortgage can give you a solution.

As mentioned above, the second charge finance is entirely separate to the existing borrowing. It will be with a different lender (otherwise you would be taking out what is called a ‘further advance’, which is borrowing more from your existing lender) with separate terms and conditions.

So, you do not repay your existing mortgage and are not charged ERCs as a result, but can raise more money for any legal purpose.

When you phone our broker team, you are ringing a number that goes straight through to an advisor. No annoying phone menus, and you can get straight on with discussing you case and starting an application. Or request a call-back here.

Why choose Commercial Trust?

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Apply with ease by phone

It couldn't be easier to secure a second charge mortgage with our expert advisors. Ask all your questions and arrange an application on the phone from your sofa.

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World class customer service

We’ll find you a great deal and take all the admin work off your shoulders, so you can relax while we get your finance completed. All the while giving you progress updates.

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Lender decision in 2 hours

By contacting you by phone and email, you can get help more quickly than in person services. It’s possible to get you a lender decision in principle in as little as two hours after our call.

We can help you with...

  • Borrowing up to 75% loan to value
  • Fast access to funds (within days)
  • Protect your existing borrowing
  • Borrow during existing initial rate period
  • Raise funds for any legal purpose
  • Consent not always needed from existing lender
  • Borrow against buy to let or commercial property
  • Borrow in personal name or via a limited company
  • Borrow based on rental income from property
  • Repayment or interest-only mortgage payment options
  • Flexible affordability calculations
  • Unlimited portfolio sizes

Costs involved with a second charge mortgage

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  • Lenders may charge you for the valuation conducted on your property. They often also charge a product fee, sometimes this can be added to the mortgage.

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  • You will need a conveyancing solicitor who will charge fees. Read our guide to choosing a conveyancing solicitor.

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  • We charge a broker fee for our work. You pay in two parts. A booking fee, once we have found you a mortgage deal, at application. The majority of our fee is paid at completion of the mortgage.

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  • Every second charge mortgage comes with monthly mortgage costs based on the mortgage interest rate the lender charges. These are paid on either an interest-only or capital repayment basis.

How to apply


Tell our advisors about the property you are raising money against, your needs and circumstances. If you have credit concerns, chat to us about them, so we can put you with the right lender.


Your advisor will find the best possible deal from a search of a wide range of products. They will get you a lender decision in principle, this requires a soft credit search (occasionally it is a hard credit search).


Your advisor will call to discuss the product they have found for you. You will be presented with one mortgage, that is the best match for all your needs and offers you the most cost effective option.


On your instruction, your advisor will submit your mortgage application. Your account manager then does all liaison and administrative work to complete the deal, whilst keeping you updated at every step.

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Frequently asked questions

Yes, your first charge mortgage lender could stop you from taking out more borrowing on your property. It is important to call them, before you start investigating your options to increase your borrowing, for this reason. They may be prepared to offer you a further advance, which means you can borrow more from them.

A second charge mortgage is a perfectly legitimate method of borrowing money, if you can afford the payments. Some investors put second charge borrowing to very good use and use it to their advantage. The risk of second charge borrowing, as with any other borrowing secure on property, is that ultimately if you do not keep up with payments, your lender  could take possession of your property to recoup your debt.

So long as you have enough equity in your property (the amount you own compared to the amount you have borrowed to pay for it) it is as simple as getting a regular mortgage. You will need to show that the payments are affordable for you, which with a rental property (buy to let or commercial) will be dictated by the rental income.

You will need to get permission to take out a second charge mortgage from your existing lender. A specialist mortgage broker can help you find an appropriate second charge mortgage product that meets your needs and circumstances. A broker can also ensure they find you a product that offers you the most cost effective deal.