We are currently experiencing technical difficulties with our telephone system.
We apologise for any inconvenience and are working to resolve this as soon as possible.
Evolution Money
Customer Enquiries 0161 814 9158
This website uses cookies. By continuing to browse the site you are agreeing to our use of cookies. Continue

Second charge loans, otherwise known as homeowner loans

Second Charge Loans – Explained

Secured Loans > Our Loans > Homeowner Loans > Second charge loans explained

What Are Second Charge Loans?

Second charge loans are a secured loan and are also known as second mortgages or homeowner loans.
Taking out a second charge loan will mean you will have two separate mortgages on your home. The second mortgage sits below your main mortgage in terms of priority. The main mortgage will always take priority over the second charge loan.

How Second Charge Loans Work?

A second charge mortgage allows you to use any equity you have in your home as security against another loan. Equity is the percentage of your property owned outright by you, which is the value of your home minus any mortgage owed on it.

A second charge loan works in a similar way to your primary mortgage. For example, when you sell a property on which you have a mortgage, you will have to pay off that mortgage using the money from the sale. Similarly, you will also have to pay off any second charge loan that is secured against that property.

Why Choose a Second Charge Loan?

They are often used as an alternative to a re-mortgage especially if you are on a fixed rate mortgage with early repayment charges or if you have an interest only mortgage.

Here are some reasons why a second charge loan may be preferable to re-mortgaging:

  • If your credit score has reduced since taking out your first mortgage.
  • You may have had a change in circumstances which could mean you end up paying a higher interest rate on your entire mortgage.
  • It may be cheaper for you to take out a second charge mortgage rather than to remortgage.

Check your current mortgage deal to see if this has any exit fees or high early repayment charges.

What can second Charge Loans be used for?

This type of loan can be used for home improvement or to consolidate other existing debt or if you are planning a wedding.

With our second charge loans you may be able to borrow from £5,000 to £50,000. The higher the equity in your property, the more money you may be able to borrow. A second charge loan allows you to raise the money you want, when you want and without you having to change mortgage lender through a remortgage.

With our second charge loans there is a mandatory reflection period of 7 days between receiving your Binding Mortgage Offer and signing the Legal Charge document. This gives you time to consider your loan option.

Warning: Late payment can cause you serious money problems. For help, go to moneyadviceservice.org.uk

How our customers rate us

We’re proud of the high standard of our customer service and believe that each of our customers should be treated as an individual.
Evolution Money 96 out of 100, based on 178 reviews over the past year. 178 user reviews. Read our reviews

Members of the The Finance & Leasing Association

FLA logoWe are a member of the FLA (Finance and Leasing Association) and subscribe to its lending code.

Socialise

Feeling social? Check out our social pages!

Tweet us on Twitter
Like us on Facebook
Add us on Google+

Our Address

Evolution Money,
9 Portland Street,
Manchester,
M1 3BE


Registered Company Number: 06987852

Contact by Phone

General Enquiries:
0161 814 9158

Complaints:
0161 814 9165

Contact by Email

Evolution Money Limited is a licensed credit broker and service provider to Evolution Lending Limited. If your application doesn’t meet the underwriting requirements of Evolution Lending Limited we may pass your information to other lenders and brokers. Evolution Money Limited is a company registered in England & Wales, registration number 06987852 and registered at 9 Portland Street, Manchester, M1 3BE. Authorised and regulated by the Financial Conduct Authority, firm reference number 708324.


© 2020 Evolution Money | Cookies | Complaints Policy | Breaking Down Our Loans | Terms & Conditions | Fair Processing Notice
Start Here
Please wait

Please wait

Don't leave just yet!

Evolution Money are a multi Award Winning UK finance company with thousands of happy customers!

Award Winning

Our friendly loan advisors can let you know if you're eligible for a loan without affecting your credit score. Why not give us a call today!

Freephone 0800 144 8188

Back to Evolution