Second-charge mortgages also known as secured loans, are mortgages taken out against properties with existing mortgages. Taking out a second charge mortgage could be a good option if, for example, your home is still carrying an outstanding mortgage, but you need additional funds. When you sell your property to repay the mortgage, your second charge mortgage will be second in line for repayment. In other words, the first charge (original mortgage) has priority in being repaid before the second charge (second mortgage). If you’re taking out a second-charge mortgage for the right reason, the pros will generally outweigh the cons by some distance.

Second-charge mortgages offer several benefits. Firstly, they provide an additional source of borrowing for homeowners without disturbing their existing mortgage arrangements. This makes them particularly useful for borrowers who may be locked into favourable mortgage rates or those who do not wish to re-mortgage. 

These mortgages also often have more flexible lending criteria, making them accessible to borrowers with varying credit profiles. Additionally, the funds can be used for various purposes, such as home improvements, debt consolidation, or other financial requirements. The interest rates on second-charge mortgages can be competitive, making them an attractive option for those seeking cost-effective financing solutions.