Residential Second Charge Mortgages

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 A second charge mortgage is a loan secured against a client's property, that gives them access to the equity they hold in it. As such, it is only available to property owners. It's called a \"Second Charge\" mortgage simply because the primary mortgage on a property is referred to as the \"First Charge\" mortgage. 

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 Flexible: The borrower could be self-employed, lending criteria may have tightened since they took out their first mortgage, perhaps they're credit-impaired, or at the salary multiple limit.

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Fast: Second Charge mortgages can complete quickly. This can be within days or weeks. Typically, 3-5 weeks.

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Functional: There are cases where a Second Charge might also be appropriate. For example, they can sometimes simply prove cheaper than remortgaging – particularly if your client faces heavy early repayment charges. 

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 Any property-owning individual can apply for a second charge mortgage with Aria Finance. 

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• Home improvements
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• Second property deposits
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• Tax debt repayment
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• Business finance
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• School fees
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• Debt consolidation
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• Almost any legal purpose - (we're happy to advise on suitability)
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","broker_specific":0,"hs_child_table_id":0,"hs_created_at":1660837150440,"hs_deleted_at":0,"hs_id":82312009125,"hs_initial_published_at":1756713272362,"hs_is_edited":false,"hs_published_at":1756713306358,"hs_updated_at":1756712500488,"hs_updated_by_user_id":25791956,"products":[{"createdAt":null,"createdByUserId":0,"id":4,"isHubspotDefined":false,"label":"second-charge-mortgages","labelTranslations":{},"name":"second-charge-mortgages","order":3,"type":"option","updatedAt":null,"updatedByUserId":0}],"question":"What reasons might a client apply for a Second Charge mortgage?","sub_category":{"createdAt":null,"createdByUserId":0,"id":1,"isHubspotDefined":false,"label":"The Basics","labelTranslations":{},"name":"The Basics","order":0,"type":"option","updatedAt":null,"updatedByUserId":0}},{"answer":"

Where a second charge mortgage is used to buy property, the borrower can apply for:

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• Up to 100% loan-to-value on residential properties
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• Up to 75% loan-to-value for clients with credit problems
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","broker_specific":0,"hs_child_table_id":0,"hs_created_at":1660837214286,"hs_deleted_at":0,"hs_id":82356730203,"hs_initial_published_at":1756713272362,"hs_is_edited":false,"hs_published_at":1756713306358,"hs_updated_at":1756712545766,"hs_updated_by_user_id":25791956,"products":[{"createdAt":null,"createdByUserId":0,"id":4,"isHubspotDefined":false,"label":"second-charge-mortgages","labelTranslations":{},"name":"second-charge-mortgages","order":3,"type":"option","updatedAt":null,"updatedByUserId":0}],"question":"How much can a client borrow for a Second Charge mortgage?","sub_category":{"createdAt":null,"createdByUserId":0,"id":1,"isHubspotDefined":false,"label":"The Basics","labelTranslations":{},"name":"The Basics","order":0,"type":"option","updatedAt":null,"updatedByUserId":0}},{"answer":"

If your client defaults on their mortgage, the First Charge takes precedence over the Second Charge, which means that the Second Charge lender may not be left with enough residual equity from the repossession to repay their loan.

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As a result of this increased risk, they recover the loan through higher monthly interest rates.

","broker_specific":0,"hs_child_table_id":0,"hs_created_at":1661933879927,"hs_deleted_at":0,"hs_id":83526019730,"hs_initial_published_at":1756713272362,"hs_is_edited":false,"hs_published_at":1756713306358,"hs_updated_at":1756712596085,"hs_updated_by_user_id":25791956,"products":[{"createdAt":null,"createdByUserId":0,"id":4,"isHubspotDefined":false,"label":"second-charge-mortgages","labelTranslations":{},"name":"second-charge-mortgages","order":3,"type":"option","updatedAt":null,"updatedByUserId":0}],"question":"Why are Second Charge mortgage interest rates higher than traditional (FIrst Charge) mortgages?","sub_category":{"createdAt":null,"createdByUserId":0,"id":1,"isHubspotDefined":false,"label":"The Basics","labelTranslations":{},"name":"The Basics","order":0,"type":"option","updatedAt":null,"updatedByUserId":0}},{"answer":"

The flexible nature of Second Charge mortgages presents a higher risk to the lender, which is reflected in the interest rates.  Also, the case has to be transacted by a specialist broker who will incur processing costs.

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However, with our expert service, we will be able to ensure the product is the best available for your client.

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Yes, Second Charge mortgages are regulated by the FCA and practices adhere to the same rules as the First Charge market.

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They are no different from a First Charge mortgage except they rank second on the title deed of the property.

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 Second Charge mortgages are extremely flexible in their range of criteria, speed and uses, which has proven appeal to a wide range of borrowers. As an ideal way to raise funds from existing equity without disturbing their First Charge mortgage, Second Charges can be accessed by both individuals and landlords, are mostly without ERCs and offer loan sizes from 6 times income.

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They are used for a variety of reasons such as debt consolidation, home improvements, tax debt clearance, property deposits, school fee payments and business financing – in fact, any legal purpose. By securing against a property, the borrower will gain the ability to consider longer-term borrowing that is not available through unsecured lending (which is typically restricted to a maximum of 7 years on a repayment basis).

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An unsecured loan is typically capped at £50,000. However, with a Second Charge mortgage, borrowers will have the ability to borrow more than this (subject to the equity in their property). 

","broker_specific":0,"hs_child_table_id":0,"hs_created_at":1661934381642,"hs_deleted_at":0,"hs_id":83526019740,"hs_initial_published_at":1756713272362,"hs_is_edited":false,"hs_published_at":1756713306358,"hs_updated_at":1756712800897,"hs_updated_by_user_id":25791956,"products":[{"createdAt":null,"createdByUserId":0,"id":4,"isHubspotDefined":false,"label":"second-charge-mortgages","labelTranslations":{},"name":"second-charge-mortgages","order":3,"type":"option","updatedAt":null,"updatedByUserId":0}],"question":"How flexible are Second Charges mortgages?","sub_category":{"createdAt":null,"createdByUserId":0,"id":1,"isHubspotDefined":false,"label":"The Basics","labelTranslations":{},"name":"The Basics","order":0,"type":"option","updatedAt":null,"updatedByUserId":0}},{"answer":" Lenders that operate in the Second Charge market answer to the Financial Conduct Authority (FCA) and must abide by their rules and regulations. Currently, High Street lenders do not offer Second Charge products as they require a fully advised sales process, that they cannot currently accommodate or have little appetite for. ","broker_specific":0,"hs_child_table_id":0,"hs_created_at":1661934438499,"hs_deleted_at":0,"hs_id":83526019743,"hs_initial_published_at":1756713272362,"hs_is_edited":false,"hs_published_at":1756713306358,"hs_updated_at":1756712832312,"hs_updated_by_user_id":25791956,"products":[{"createdAt":null,"createdByUserId":0,"id":4,"isHubspotDefined":false,"label":"second-charge-mortgages","labelTranslations":{},"name":"second-charge-mortgages","order":3,"type":"option","updatedAt":null,"updatedByUserId":0}],"question":"Can I trust Second Charge mortgage lenders?","sub_category":{"createdAt":null,"createdByUserId":0,"id":1,"isHubspotDefined":false,"label":"The Basics","labelTranslations":{},"name":"The Basics","order":0,"type":"option","updatedAt":null,"updatedByUserId":0}},{"answer":"

The following properties can be used against an Enterprise Finance second charge loan:

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• A primary place of residence
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• Buy-to-let properties
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• Commercial properties
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There are many reasons you might consider a second charge mortgage for your client.

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These commonly include:

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• They want or need to consolidate other debts
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• They require access to funds but have an adverse credit rating
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• They need to raise capital quickly (with Aria Finance, second charge loans are typically completed in around three to six weeks from the application, but can be as little as 24 hours)
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• They want to avoid paying an early repayment charge on an existing mortgage
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• The interest rate on their current mortgage is attractive and they do not want to lose it by remortgaging
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• They require funding for home improvements
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• They need to pay a tax bill
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• They have to pay school or university fees
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• They want to raise a deposit to buy an investment property
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• Their business needs extra funding (something many mortgage lenders are not willing to consider remortgaging) – we can only do it for asset purchase, not for cash flow purposes 
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","broker_specific":0,"hs_child_table_id":0,"hs_created_at":1662370045793,"hs_deleted_at":0,"hs_id":83978162575,"hs_initial_published_at":1756713272362,"hs_is_edited":false,"hs_published_at":1756713306358,"hs_updated_at":1756712898319,"hs_updated_by_user_id":25791956,"products":[{"createdAt":null,"createdByUserId":0,"id":4,"isHubspotDefined":false,"label":"second-charge-mortgages","labelTranslations":{},"name":"second-charge-mortgages","order":3,"type":"option","updatedAt":null,"updatedByUserId":0}],"question":"For what reasons might a client apply for second charge mortgage?","sub_category":{"createdAt":null,"createdByUserId":0,"id":2,"isHubspotDefined":false,"label":"Criteria","labelTranslations":{},"name":"Criteria","order":1,"type":"option","updatedAt":null,"updatedByUserId":0}},{"answer":"

Aria Finance charges no upfront broker or admin fees. The costs are only payable by the client if the loan completes.

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Clients do have the option to pay some or all costs upfront or add these to the loan amount, subject to preference.
Our advisors are experienced in assessing loan applications and will let you know if a loan application is likely to succeed before it is even processed. This helps us manage expectations and save you and your client time, money, and hassle if the deal is not right for us.

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When arranging a second charge mortgage on a buy-to-let property, the client will need to pay for their own valuation. 

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