{Speak to an Expert=aca92d3a-179e-41c2-941c-d7cbac0287e1, Request a quote=85f9f070-0f3d-416b-ad31-ceec60432f9c}
Corporate Building

Speak to an Expert

Corporate Building

Request a quote

This site is intended for professional intermediary use only, and its content should not be distributed to the general public.

Search the website

No results found for "". Please try a different term or browse the site.

Residential

A flexible range of second charge mortgages secured on the borrower's main residence.

Buy-to-let

A range of second charge mortgages to cater to the needs of property investors.

Send your enquiry: request a quote

Key product features

  • Competitive interest rates
  • Loans available up to 100% LTV
  • Impaired credit loans available
  • Up to £1,000,000 standard lending criteria (more available by exception)
  • Peace of mind that your clients’ cases are being dealt with by leading industry experts
  • The loan can be used for any legal purpose.
  • 1 Year Self-employed applicants are considered 
  • Interest only options available
  • Low early redemption fees
  • Non-standard construction considered

When is Second Charge Mortgage required?

We find solutions for any type of borrower, providing advised and non-advised assistance for those who:

  • Have high early redemption penalties on an existing mortgage.
  • Enjoy an attractive interest rate they don’t wish to lose.
  • Lack the credit rating required for mainstream borrowing.
  • Cannot obtain necessary funds required via remortgaging.

When to consider a Second Charge Mortgage?

The Individual

A client has been declined by the high street lender and cannot access a further advance or remortgage if they:
  • Are self-employed
  • Are credit impaired
  • Are at salary multiple limits
  • Need to raise capital for a purpose not accepted on the high street.
The current mortgage

The client may not wish to take a further advance or remortgage if their current mortgage:
  • Has ERCs - a penalty to remortgage
  • Is Interest Only - Changing to a repayment mortgage could be more costly
  • Is a bank base rate tracker - where the client’s current rate cannot be beaten

The benefits of Second Charge Mortgage

An ideal alternative to remortgaging or a further advance, second-charge mortgages provide a fast, cost-effective means of secured borrowing. 

  • Fully transparent and regulated in line with the FCA
  • Flexible terms and lending criteria
  • Speed of delivery
  • Competitive rates

Uses

There are many uses for second-charge mortgages, here are just some of the many examples that might suit your needs.

The pandemic has seen many people re-evaluate their living arrangements, from moving home to staying put and improving their surroundings. If finance is needed for property renovations, a second-charge mortgage can be a very cost-effective way of securing funds to carry out such home improvements. 

Additionally, landlords can also unlock equity in their investment properties for personal use, for example, raising finance on their buy-to-let property to carry out home improvements to their main residence.

One of the most popular reasons for further borrowing secured on buy-to-let properties include raising funds to refurbish existing investment properties either to increase rental yield or the value of the property.

When debt's become unmanageable, or multiple monthly payments are too costly, a second charge mortgage could provide a hassle-free and cost-effective option for those that have numerous outstanding debts. This could include credit and debit cards bills, as well as other financial commitments and loans. 

Securing a second-charge mortgage could be a great way to consolidate all debt into one easy monthly repayment.

Gifting or lending money to family members so they can buy their own home is not new but it is more prevalent than it used to be. There is even have a name for it now - the Bank of Mum and Dad.

If Bank of Mum and Dad was actually a bank it would be a top 10 lender. According to research by Legal & General and Cebr, 23% of home purchases in 2020 had family assistance, up from 19 per cent in 2019.

Unsurprisingly, a second-charge mortgage is commonly used to free up funds to support family members getting onto the property ladder. 

In an ever-changing housing market, there will always be pockets of opportunity for property investment. Whether that is to purchase a second home, holiday home, or even expand a BTL portfolio a second charge mortgage could be the perfect way to release funds for such purchases. 

Second charges can facilitate the expansion of landlords’ property portfolios. A significant number of landlords raise funds to buy additional investment properties either by way of a deposit or as an outright purchase.


Why choose Aria?

Over 20 years of experience

Our expert team have over 20 years of experience in bridging finance and the specialist distribution industry and works on your behalf to provide access to market-leading rates with rapid loan completion as standard.


  • We handle every element of your enquiry from application to completion to take the stress out of the mortgage process.
  • With one quick and easy call or online application, we can review your client's needs and work with a panel of lenders to tailor a finance solution perfect for their needs.
Send your enquiry: Speak to an Expert

Experts

20+ years in the industry

First class service

We handle every element of your enquiry from application to completion to take the stress out of the mortgage process

Access to 100+ lenders

Our extensive lending panel stretches across the high street, challenger banks, offering you unrivalled access to a wide range of products and rates

High conversion rate

With one quick and easy call or online application, we can review your client's needs and work with a panel of lenders to tailor a finance solution perfect for their needs

Point of contact

We offer one point of contact form enquiry through to completion, always aiming to make the process as smooth as possible

Related articles

Make no mistake... this is no repeat of 2008

Make no mistake... this is no repeat of 2008

Blog | August 3, 2023

Lucy Waters - Managing Director, Aria Finance

Read story >>

When to talk to your clients about second charge mortgages

Blog | January 11, 2023

It can be a little daunting trying to bring up the topic of a second charge mortgage, especially if...

Read story >>

BoMaD – The Bank of Mum & Dad

Blog | September 28, 2020

It has been there for many first-time buyers over the years – a life-changing option that can only...

Read story >>
{"limit":1000,"message":null,"objects":[{"answer":"

A second charge mortgage is a secured loan 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.

","broker_specific":0,"hs_child_table_id":0,"hs_created_at":1658401635223,"hs_deleted_at":0,"hs_id":79800034138,"hs_is_edited":false,"hs_published_at":1708095516058,"hs_updated_at":1662126192505,"hs_updated_by_user_id":25791956,"products":[{"id":4,"label":"second-charge-mortgages","labelTranslations":null,"name":"second-charge-mortgages","order":3,"type":"option"}],"question":"What is a Second Charge mortgage?","sub_category":{"id":1,"label":"The Basics","labelTranslations":null,"name":"The Basics","order":0,"type":"option"}},{"answer":"

Flexible: Maybe the borrower is self-employed and lending criteria have tightened since they took out their first mortgage. Or perhaps they’re credit-impaired, at the salary multiple limit.

\n

Fast: Second Charge mortgages can complete quickly. This can be days or weeks. Typically, 3-6 weeks.

\n

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.

","broker_specific":0,"hs_child_table_id":0,"hs_created_at":1658401652388,"hs_deleted_at":0,"hs_id":79804998965,"hs_is_edited":false,"hs_published_at":1708095516058,"hs_updated_at":1663853048962,"hs_updated_by_user_id":25791956,"products":[{"id":4,"label":"second-charge-mortgages","labelTranslations":null,"name":"second-charge-mortgages","order":3,"type":"option"}],"question":"What are the main benefits of a Second Charge mortgage?","sub_category":{"id":1,"label":"The Basics","labelTranslations":null,"name":"The Basics","order":0,"type":"option"}},{"answer":"

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

","broker_specific":0,"hs_child_table_id":0,"hs_created_at":1658401689569,"hs_deleted_at":0,"hs_id":79804998968,"hs_is_edited":false,"hs_published_at":1708095516058,"hs_updated_at":1662556924856,"hs_updated_by_user_id":25791956,"products":[{"id":4,"label":"second-charge-mortgages","labelTranslations":null,"name":"second-charge-mortgages","order":3,"type":"option"}],"question":"Who can apply for a Second Charge mortgage?","sub_category":{"id":1,"label":"The Basics","labelTranslations":null,"name":"The Basics","order":0,"type":"option"}},{"answer":"
    \n
  • Home improvements
  • \n
  • Second property deposits
  • \n
  • Tax debt repayment
  • \n
  • Business finance
  • \n
  • School fees
  • \n
","broker_specific":0,"hs_child_table_id":0,"hs_created_at":1660837150440,"hs_deleted_at":0,"hs_id":82312009125,"hs_is_edited":false,"hs_published_at":1708095516058,"hs_updated_at":1662556928009,"hs_updated_by_user_id":25791956,"products":[{"id":4,"label":"second-charge-mortgages","labelTranslations":null,"name":"second-charge-mortgages","order":3,"type":"option"}],"question":"What reasons might a client apply for a Second Charge mortgage?","sub_category":{"id":1,"label":"The Basics","labelTranslations":null,"name":"The Basics","order":0,"type":"option"}},{"answer":"

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

\n\n
    \n
  • Up to 100% loan-to-value on residential properties
  • \n
  • Up to 75% loan-to-value for clients with credit problems
  • \n
","broker_specific":0,"hs_child_table_id":0,"hs_created_at":1660837214286,"hs_deleted_at":0,"hs_id":82356730203,"hs_is_edited":false,"hs_published_at":1708095516058,"hs_updated_at":1662126246995,"hs_updated_by_user_id":25791956,"products":[{"id":4,"label":"second-charge-mortgages","labelTranslations":null,"name":"second-charge-mortgages","order":3,"type":"option"}],"question":"How much can a client borrow for a Second Charge mortgage?","sub_category":{"id":1,"label":"The Basics","labelTranslations":null,"name":"The Basics","order":0,"type":"option"}},{"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.

\n

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_is_edited":false,"hs_published_at":1708095516058,"hs_updated_at":1663853027043,"hs_updated_by_user_id":25791956,"products":[{"id":4,"label":"second-charge-mortgages","labelTranslations":null,"name":"second-charge-mortgages","order":3,"type":"option"}],"question":"Why are Second Charge mortgage interest rates higher than traditional (FIrst Charge) mortgages?","sub_category":{"id":1,"label":"The Basics","labelTranslations":null,"name":"The Basics","order":0,"type":"option"}},{"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.

\n

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

","broker_specific":0,"hs_child_table_id":0,"hs_created_at":1661934300971,"hs_deleted_at":0,"hs_id":83526019735,"hs_is_edited":false,"hs_published_at":1708095516058,"hs_updated_at":1663853009019,"hs_updated_by_user_id":25791956,"products":[{"id":4,"label":"second-charge-mortgages","labelTranslations":null,"name":"second-charge-mortgages","order":3,"type":"option"}],"question":"How can I explain the costs of a Second Charge mortgage?","sub_category":{"id":1,"label":"The Basics","labelTranslations":null,"name":"The Basics","order":0,"type":"option"}},{"answer":"

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

\n

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

","broker_specific":0,"hs_child_table_id":0,"hs_created_at":1661934349210,"hs_deleted_at":0,"hs_id":83526019738,"hs_is_edited":false,"hs_published_at":1708095516058,"hs_updated_at":1663853306860,"hs_updated_by_user_id":25791956,"products":[{"id":4,"label":"second-charge-mortgages","labelTranslations":null,"name":"second-charge-mortgages","order":3,"type":"option"}],"question":"Are Second Charge mortgages regulated?","sub_category":{"id":1,"label":"The Basics","labelTranslations":null,"name":"The Basics","order":0,"type":"option"}},{"answer":"

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.

\n

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).

\n

An unsecured loan is typically capped at £25,000 – with a Second Charge mortgage, borrowers will have the ability to borrow more than this, typically up to £2 million (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_is_edited":false,"hs_published_at":1708095516058,"hs_updated_at":1663852978561,"hs_updated_by_user_id":25791956,"products":[{"id":4,"label":"second-charge-mortgages","labelTranslations":null,"name":"second-charge-mortgages","order":3,"type":"option"}],"question":"How flexible are Second Charges mortgages?","sub_category":{"id":1,"label":"The Basics","labelTranslations":null,"name":"The Basics","order":0,"type":"option"}},{"answer":"Lenders that operate in the Second Charge market answer to the same regulator as the High Street lenders, 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 desire to do so.","broker_specific":0,"hs_child_table_id":0,"hs_created_at":1661934438499,"hs_deleted_at":0,"hs_id":83526019743,"hs_is_edited":false,"hs_published_at":1708095516058,"hs_updated_at":1662126319247,"hs_updated_by_user_id":25791956,"products":[{"id":4,"label":"second-charge-mortgages","labelTranslations":null,"name":"second-charge-mortgages","order":3,"type":"option"}],"question":"Can I trust Second Charge mortgage lenders?","sub_category":{"id":1,"label":"The Basics","labelTranslations":null,"name":"The Basics","order":0,"type":"option"}},{"answer":"

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

\n\n
    \n
  • A primary place of residence
  • \n
  • Buy-to-let properties
  • \n
  • Commercial properties
  • \n
","broker_specific":0,"hs_child_table_id":0,"hs_created_at":1662369975845,"hs_deleted_at":0,"hs_id":83978162573,"hs_is_edited":false,"hs_published_at":1708095516058,"hs_updated_at":1662370043350,"hs_updated_by_user_id":25791956,"products":[{"id":4,"label":"second-charge-mortgages","labelTranslations":null,"name":"second-charge-mortgages","order":3,"type":"option"}],"question":"Which type of property can a second charge mortgage be secured against?","sub_category":{"id":2,"label":"Criteria","labelTranslations":null,"name":"Criteria","order":1,"type":"option"}},{"answer":"

There are many reasons you might consider a second charge mortgage for your client.

\n

These commonly include:

\n\n
    \n
  • They want or need to consolidate other debts
  • \n
  • They require access to funds but have a bad credit rating
  • \n
  • They need to raise capital quickly (with Aria Finance, second charge loans are typically completed in around three to six weeks from the application)
  • \n
  • They want to avoid paying an early repayment charge on an existing mortgage
  • \n
  • The interest rate on their current mortgage is attractive and they do not want to lose it by remortgaging
  • \n
  • They require funding for home improvements
  • \n
  • They need to pay a tax bill
  • \n
  • They have to pay school fees
  • \n
  • They want to raise a deposit to buy an investment property
  • \n
  • 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
  • \n
","broker_specific":0,"hs_child_table_id":0,"hs_created_at":1662370045793,"hs_deleted_at":0,"hs_id":83978162575,"hs_is_edited":false,"hs_published_at":1708095516058,"hs_updated_at":1708094548454,"hs_updated_by_user_id":25791956,"products":[{"id":4,"label":"second-charge-mortgages","labelTranslations":null,"name":"second-charge-mortgages","order":3,"type":"option"}],"question":"For what reasons might a client apply for second charge mortgage?","sub_category":{"id":2,"label":"Criteria","labelTranslations":null,"name":"Criteria","order":1,"type":"option"}},{"answer":"

Aria Financecharge no upfront broker or admin fees. The costs are only payable by the client if the loan completes. Clients do have the option to pay some or all costs upfront or add these to the loan amount, subject to preference. 

\n

Our team of mortgage advisors is experienced in assessing loan applications and therefore will let you know whether a loan application is likely to succeed before an application is even processed. This way we are able to manage expectations and save you and your client time and money

\n

When arranging a second charge mortgage on a BTL property, the client will pay for their own valuation.

","broker_specific":0,"hs_child_table_id":0,"hs_created_at":1662370162828,"hs_deleted_at":0,"hs_id":83978162577,"hs_is_edited":false,"hs_published_at":1708095516058,"hs_updated_at":1708094742737,"hs_updated_by_user_id":25791956,"products":[{"id":4,"label":"second-charge-mortgages","labelTranslations":null,"name":"second-charge-mortgages","order":3,"type":"option"}],"question":"Does my client pay any initial costs on a second charge mortgage?","sub_category":{"id":3,"label":"Terms","labelTranslations":null,"name":"Terms","order":2,"type":"option"}},{"answer":"Our experience means that in most cases we will be able to confirm almost straightaway whether your client’s application is likely to be successful.","broker_specific":0,"hs_child_table_id":0,"hs_created_at":1662370222272,"hs_deleted_at":0,"hs_id":83976840988,"hs_is_edited":false,"hs_published_at":1708095516058,"hs_updated_at":1662370251456,"hs_updated_by_user_id":25791956,"products":[{"id":4,"label":"second-charge-mortgages","labelTranslations":null,"name":"second-charge-mortgages","order":3,"type":"option"}],"question":"How long before I’m in a position to tell my client if we can proceed with their application?","sub_category":{"id":4,"label":"Applications Process","labelTranslations":null,"name":"Applications Process","order":3,"type":"option"}},{"answer":"From the initial enquiry to completion, our average turnaround time for a second charge mortgage is 3-6 weeks.","broker_specific":0,"hs_child_table_id":0,"hs_created_at":1662370252902,"hs_deleted_at":0,"hs_id":83976840990,"hs_is_edited":false,"hs_published_at":1708095516058,"hs_updated_at":1663852501875,"hs_updated_by_user_id":25791956,"products":[{"id":4,"label":"second-charge-mortgages","labelTranslations":null,"name":"second-charge-mortgages","order":3,"type":"option"}],"question":"How long will an application take to complete?","sub_category":{"id":4,"label":"Applications Process","labelTranslations":null,"name":"Applications Process","order":3,"type":"option"}},{"answer":"
\n
\n

The repayment term can be anywhere from three to 30 years.

\n
\n
\n
\n
\n
\n

 

\n
\n
\n
","broker_specific":0,"hs_child_table_id":0,"hs_created_at":1662370297172,"hs_deleted_at":0,"hs_id":83978162578,"hs_is_edited":false,"hs_published_at":1708095516058,"hs_updated_at":1708095268075,"hs_updated_by_user_id":25791956,"products":[{"id":4,"label":"second-charge-mortgages","labelTranslations":null,"name":"second-charge-mortgages","order":3,"type":"option"}],"question":"What is the repayment term on a second charge mortgage?","sub_category":{"id":5,"label":"Fees, Repayments and Commission","labelTranslations":null,"name":"Fees, Repayments and Commission","order":4,"type":"option"}},{"answer":"Both interest-only and repayment options may be available depending on the client’s circumstances.","broker_specific":0,"hs_child_table_id":0,"hs_created_at":1662370335219,"hs_deleted_at":0,"hs_id":83978162579,"hs_is_edited":false,"hs_published_at":1708095516058,"hs_updated_at":1662370355998,"hs_updated_by_user_id":25791956,"products":[{"id":4,"label":"second-charge-mortgages","labelTranslations":null,"name":"second-charge-mortgages","order":3,"type":"option"}],"question":"Are second charge mortgages interest-only or repayment-based?","sub_category":{"id":5,"label":"Fees, Repayments and Commission","labelTranslations":null,"name":"Fees, Repayments and Commission","order":4,"type":"option"}}],"offset":0,"total":17,"totalCount":17}
second-charge-mortgage 3-1

Second Charge Mortgages

Frequently asked questions

What is a Second Charge mortgage?

A second charge mortgage is a secured loan 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.

A second charge mortgage is a secured loan 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...

What are the main benefits of a Second Charge mortgage?

Flexible: Maybe the borrower is self-employed and lending criteria have tightened since they took out their first mortgage. Or perhaps they’re credit-impaired, at the salary multiple limit.

Fast: Second Charge mortgages can complete quickly. This can be days or weeks. Typically, 3-6 weeks.

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.

Flexible: Maybe the borrower is self-employed and lending criteria have tightened since they took out their first mortgage. Or perhaps they’re credit-impaired, at the salary multiple limit.

Fast: ...

Who can apply for a Second Charge mortgage?

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

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

What reasons might a client apply for a Second Charge mortgage?
  • Home improvements
  • Second property deposits
  • Tax debt repayment
  • Business finance
  • School fees
  • Home improvements
  • Second property deposits
  • Tax debt repayment
  • Business finance
  • School fees
How much can a client borrow for a Second Charge mortgage?

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

  • Up to 100% loan-to-value on residential properties
  • Up to 75% loan-to-value for clients with credit problems

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

  • Up to 100% loan-to-value on residential properties
  • Up to 75% loan-to-value for clients with credit problems
Why are Second Charge mortgage interest rates higher than traditional (FIrst Charge) mortgages?

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.

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

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...

How can I explain the costs of a Second Charge mortgage?

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.

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

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...

Are Second Charge mortgages regulated?

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

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

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

They are no different from a First Charge mortgage except they rank second on...

How flexible are Second Charges mortgages?

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.

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).

An unsecured loan is typically capped at £25,000 – with a Second Charge mortgage, borrowers will have the ability to borrow more than this, typically up to £2 million (subject to the equity in their property).

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...

Can I trust Second Charge mortgage lenders?
Lenders that operate in the Second Charge market answer to the same regulator as the High Street lenders, 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 desire to do so.
Lenders that operate in the Second Charge market answer to the same regulator as the High Street lenders, the Financial Conduct Authority (FCA) and must abide by their rules and regulations....
Which type of property can a second charge mortgage be secured against?

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

  • A primary place of residence
  • Buy-to-let properties
  • Commercial properties

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

  • A primary place of residence
  • Buy-to-let properties
  • Commercial properties
For what reasons might a client apply for second charge mortgage?

There are many reasons you might consider a second charge mortgage for your client.

These commonly include:

  • They want or need to consolidate other debts
  • They require access to funds but have a bad credit rating
  • They need to raise capital quickly (with Aria Finance, second charge loans are typically completed in around three to six weeks from the application)
  • They want to avoid paying an early repayment charge on an existing mortgage
  • The interest rate on their current mortgage is attractive and they do not want to lose it by remortgaging
  • They require funding for home improvements
  • They need to pay a tax bill
  • They have to pay school fees
  • They want to raise a deposit to buy an investment property
  • 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

There are many reasons you might consider a second charge mortgage for your client.

These commonly include:

  • They want or need to consolidate other debts
  • They require access to funds but have a bad...
Does my client pay any initial costs on a second charge mortgage?

Aria Financecharge no upfront broker or admin fees. The costs are only payable by the client if the loan completes. Clients do have the option to pay some or all costs upfront or add these to the loan amount, subject to preference. 

Our team of mortgage advisors is experienced in assessing loan applications and therefore will let you know whether a loan application is likely to succeed before an application is even processed. This way we are able to manage expectations and save you and your client time and money

When arranging a second charge mortgage on a BTL property, the client will pay for their own valuation.

Aria Financecharge no upfront broker or admin fees. The costs are only payable by the client if the loan completes. Clients do have the option to pay some or all costs upfront or add these to the...

How long before I’m in a position to tell my client if we can proceed with their application?
Our experience means that in most cases we will be able to confirm almost straightaway whether your client’s application is likely to be successful.
Our experience means that in most cases we will be able to confirm almost straightaway whether your client’s application is likely to be successful.
How long will an application take to complete?
From the initial enquiry to completion, our average turnaround time for a second charge mortgage is 3-6 weeks.
From the initial enquiry to completion, our average turnaround time for a second charge mortgage is 3-6 weeks.
What is the repayment term on a second charge mortgage?

The repayment term can be anywhere from three to 30 years.

 

The repayment term can be anywhere from three to 30 years.

Are second charge mortgages interest-only or repayment-based?
Both interest-only and repayment options may be available depending on the client’s circumstances.
Both interest-only and repayment options may be available depending on the client’s circumstances.

Sorry, no results were found for query  ""

Send your enquiry: Speak to an Expert