Learn How to Remove a Second Charge on Property

Owning a home is a significant achievement, but sometimes, financial needs can lead to placing a second mortgage charge on your property. While this can be a helpful solution for accessing additional funds, you might eventually find yourself wanting to remove this second charge. Here’s a comprehensive guide to help you understand how to remove a second charge on your property.

What Is a Second Charge?

A second charge mortgage, also known as a second mortgage, is a secured loan taken out on a property that already has a mortgage. It uses your home as security and is in addition to but entirely separate from your primary mortgage. It has its own mortgage lender, rate and terms. Second charges are typically used for significant expenditures such as home improvements, debt consolidation, or major purchases.

What Does to Pay Off Second Charge Mean?

Paying off a second charge on your property simply means to pay back the lender and have the second charge removed from your property. You can pay off a second charge via the regularly scheduled payments, a lump sum, a remortgage, or selling the property.

Paying off your loan is always an important financial step and it can lead to greater financial freedom and increased equity in your home.

But what does this mean and how exactly does paying off a second charge benefit you as a borrower and homeowner?

Why Remove a Second Charge?

There are many reasons to remove a second charge, such as to increase the equity in your property, simplify your finances, reduce your monthly outgoings, improve your credit score and reduce your overall debt.

Many people decide to remove their second charge once their ERC (early repayment charge) period is over, by remortgaging both their first and second charges onto one lower rate.

Benefits of Paying Off a Second Charge

  • Increased home equity: once the second charge is paid off, the equity in your home increases, potentially enhancing your financial stability and borrowing power
  • Simplified finances: eliminating the second charge can simplify your financial obligations, leaving you with just one mortgage payment to manage
  • Reduced interest payments: paying off the second charge can save you money on interest payments over time, especially if the second mortgage had a higher interest rate than your primary mortgage
  • Improved credit profile: reducing your overall debt can positively impact your credit score, making it easier to obtain credit in the future

How to Remove a Second Charge on Property

Repay the Loan

The most straightforward way to remove a second charge is to repay the loan in full. This may involve paying off the balance regularly according to your mortgage terms or in a lump sum from your savings.


You can remortgage your property to pay off both the first and second charges. This involves taking out a new mortgage that consolidates both your mortgages into one and covers the total amount owed. The new mortgage should ideally offer better terms or a lower interest rate, making it easier to manage your payments.

Sell the Property

If selling your home is an option, the proceeds from the sale can be used to pay off the first and second charges. Any remaining equity would be yours to keep.

Negotiate with the Lender

In some cases, you may be able to negotiate with the lender of the second charge. They might be willing to settle for a lower amount, especially if you can demonstrate financial hardship or provide a lump-sum payment.

Important Considerations for Removing a Second Charge

  • Early repayment fees: be aware of any ERCs (early repayment charges) associated with your second charge loan. These fees can impact the total cost of removing the charge
  • Financial advice: seek professional financial advice to understand the best option for your circumstances. A mortgage broker can provide guidance tailored to your financial situation
  • Financial impact: consider how paying off the second charge will impact your overall financial situation, including your credit score, cash flow and savings

Get Help from a Second Charge Expert

Navigating the process of removing a second charge can be complex, but you don’t have to do it alone. Our experienced mortgage brokers are here to help you every step of the way. We’ll work with you to explore your options, find the best solution and guide you through the process smoothly.

Contact Us

Ready to take the next step? Contact us today on 0330 433 2927 to discuss how we can help you remove the second charge on your property and achieve your financial goals.