Can I take out a second charge mortgage for house renovations?

Posted on 26 May 2016

"I would like a quote to take out a second charge mortgage/secure loan for house renovation work to the expected value of £28,000. Can John Charcol help?"

Thank you for your query submitted on our website.

From the brief details you have supplied this looks like something that we may be able to help you with. Obviously we would need to know the all the details around your financial situation before we proceed. We would need to complete a ‘fact find’ exercise and identify and establish whether a second charge loan is actually the best option for you rather than a remortgage. A second charge mortgage, or secured loan as they are also known, can be a useful way to raise finance if your current lender is unable to increase your existing mortgage or if you don't want to remortgage as you would lose your preferential rate.

A second charge (or secured loan) mortgage is a loan that that uses your home as security, in addition to your existing mortgage. You now have two mortgages on your home; however the main mortgage will always take precedence over this second mortgage. Since March 2016, lenders have become more stringent in terms of criteria, affordability and stress testing, during the underwriting process. A typical timeframe to complete a secured loan is 3 to 4 weeks, however less complicated transactions can be done within 10 days if no full valuation is required.

I believe we can help you make the decision and that you would certainly benefit from speaking to one of our independent mortgage advisers. 

Please call 0344 346 3672 or enquire now for more information on second charge mortgages.

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Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.

We recommend you seek professional advice with regard to any of these topics where appropriate.

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