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A second charge mortgage is a type of secured loan that is taken out against the equity in a property that already has an existing mortgage (which is typically referred to as the "first charge").

Equity is the portion of your property that you own outright (e.g. how much of your mortgage you have paid off). This can be used as collateral to take out a mortgage on the same property, which is known as a second charge.

A second charge mortgage is paid alongside your current mortgage. 

However, your first mortgage on the property will take priority over your second charge mortgage. 

This means if you decide to sell your property, the original mortgage lender will have first claim on the property's equity before you pay off your second mortgage. 

It usually takes 4 - 6 weeks to secure a second charge mortgage.

The process typically requires a credit check, documents confirming your identity and financial status, and property valuations. 

The time it takes to get a second charge mortgage can vary depending on several factors, including the lender, and your individual circumstances. Some second charge mortgage cases can be more complex than others, so this is a factor to consider as well. 

If you're working to a deadline, working with an experienced broker can streamline this process. We can often secure second charge mortgages in 2-3 weeks, depending on the case.

Yes, it is possible to have more than one second charge mortgage on the same property.

The total amount of second charge mortgages you can obtain on a property is usually limited by the amount of equity you have in the property. If you have a significant amount of equity in your property, you may have room for multiple second charge mortgages.

It's important to note that having multiple mortgages on one property can become complex, so interest rates on these products may be higher to offset the risk. 

Yes, it is possible to use a second charge mortgage for business purposes, but you'll need to get approval from your lender to do this. 

While it is common for some business owners to use equity in their homes to help grow their businesses, not all lenders will be open to using a second charge mortgage for this purpose.

You'll need to find a lender that offers a certain level of flexibility on what you use your loan for.

At Clifton Private Finance, we have relationships with private and specialist lenders across the market. We can find the most suitable lender for your circumstances and get you access to tailored finance solutions at the best possible rates.

We are experts in mortgage finance. Our advisers are confident in managing the complexities associated with second charge  mortgages.

We can help you:

• Understand what kind of mortgage you're eligible for and how much you can borrow.

• Feel comfortable with how the process works and any costs you will face.

On your behalf, we can:

• Compare rates across the entire market (from private lenders to high street banks)

• Negotiate the best deal for your circumstances

• Guide you through the application process

• Help you arrange your valuation(s)

• Liaise with your solicitor to sort the paperwork