Second Charges
When One Size Doesn’t Fit All
A ‘second charge’ is a personal loan that homeowners secure against the existing equity in their property. It’s a powerful financial tool that can be arranged against a variety of property types:
- Principal place of residence
- Buy-to-let properties
- Commercial properties
At Guardian Financial, through our strong partnership with the Stonebridge Network, we connect you with specialist companies who access a comprehensive, whole-of-market representation of second charge mortgage lenders. This extensive reach ensures they can cover all types of products, from those for prime clients to individuals with recent or historic credit challenges, providing solutions for almost every scenario.
Second charges can be strategically used in a variety of situations, for example:
• Avoiding Early Repayment Charges (ERCs): Preserve a low interest rate on your existing mortgage by raising funds without remortgaging.
• Maintaining Favourable Rates: Keep a very low Standard Variable Rate (SVR) or Bank of England Base Rate (BBR) tracker mortgage that you do not wish to disturb.
• Flexible Funding: Raise finance for virtually any legal purpose, including debt consolidation, home improvements, or business funding.
• Speedy Access to Funds: Loans are typically completed efficiently, often within 2–3 weeks, providing quick access to capital.
Key Advantages of a Second Charge Mortgage:
• Loan Amounts: Available from £10,000 up to £250,000 (larger loans possible by referral).
• High Loan-to-Value (LTV): Up to 95% LTV on residential properties; up to 70% LTV on commercial and buy-to-let properties.
• Credit Flexibility: Up to 75% LTV available for clients with credit problems (LTV may vary based on severity of issues).
• Flexible Terms: Loan terms typically range from 5 to 30 years.
• Repayment Options: Both interest-only and repayment options are often available.
• No Upfront Costs: Our specialist broker partners typically cover all initial costs, including valuation, to set up a second charge.
• Manageable ERCs: Maximum Early Repayment Charge is generally one month’s interest after one month’s notice, offering flexibility.
Guardian Financial and the Stonebridge Network are not responsible for the advice supplied by these third-party specialist firms. However, through our established experience and stringent selection process, we are confident that the firms we recommend are highly competent, proactive, and dedicated to providing an exceptional level of service.
IMPORTANT CONSIDERATION: THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER DEBTS SECURED AGAINST IT. Securing short-term debts against your home could increase the term over which they are paid and therefore significantly increase the overall amount payable.