Second Charges-Consumer

Complex made easy

SECOND CHARGE LOANS

A second charge loan will effectively allow you to take out a further mortgage on an existing property or home

SECOND CHARGE LOANS

A second charge loan will effectively allow you to take out a further mortgage on an existing property or home – it is a great way to top up on your existing loans by securing what you already have ownership of with a further lender in order to release equity.

Here at VIBE we can help in securing a second charge loan on your Buy to Let or Commercial investment property whether you are raising the additional finance towards consolidation or to capital raise for further investment. We can also arrange a second charge business loan on your main residential home providing you are using the funds for business purposes only.

Loans from £25,000
Up to 80% LTV (higher if additional security is provided)
You must be a homeowner/investor although you do not necessarily need to live in the property
Secured against residential, commercial and buy to let properties
You must have equity available in your property to secure the loan against
Funds for any business purpose
Security in the form of a second charge
Competitive rates
Loans to individuals, limited companies and SPV’s
Overseas applications acceptable

FAQs

What is a second charge secured loan?

A second charge loan is quite often referred to as a second charge mortgage because it is a loan secured against the available equity in a property that you own. The security is usually in the form of a second charge mortgage against the property which means that it sits behind and does not affect the primary (first charge) mortgage.

Second charge loan purposes

Secured loans can be made available for most legal purposes, including;

Settling tax bills
Home improvements
Raising a deposit for property purchases
Raising funds for business investment
Debt consolidation
School/university fees
Car purchases
Holidays
Weddings

What is a second charge business loan?

In second charge terms – a business loan will be applicable to anyone seeking a second charge loan on their main residential home.

This is because second charges on main residential homes that are not for business purposes are regulated by the FCA and subject to the Mortgages and Home Finance; Conduct of Business sourcebook (MCOB)

Any of the below reasons are classed as a business loan for the second charge loan application and are classed as unregulated by the FCA;

Home improvements
Raising a deposit for a property purchase
Business purpose (settling a tax bill)

Please note here at VIBE we can arrange unregulated loans only.

Can I get an interest only second charge mortgage?

Both interest only and capital repayment second charge loans are available.

How long do second charge mortgages take to arrange?

In general, second charge mortgages do not take as long as mainstream first charge mortgages however, we would say to realistically expect a timescale of 4-6 weeks from application submission to completion (this can vary in different circumstances)