FAQs

A second charge mortgage is a type of loan secured against your property, in addition to your existing mortgage. It allows you to borrow money while retaining your original mortgage. The loan is ‘second charge’ because it is secondary to your primary mortgage, meaning if your property is sold, the first mortgage is paid off before the second charge lender receives any funds. 

There are many reasons you would take out a second charge mortgage. Ultimately a second charge mortgage allows you to borrow money typically over a longer time frame than a traditional unsecured loan. The reasons for wanting a loan can vary. They can include not wanting to disrupt your first charge mortgage because it has a favourable rate, or maybe you want to consolidate debts to make your monthly expenses more affordable. Or you may have an unexpected large expense, like a tax bill, that you need to pay.  

Whatever your requirements for extra money or easing your monthly outgoings, it is always best to chat to a qualified mortgage adviser or financial adviser who can advise you on the best options for your circumstances.  

 A typical process for taking out a second charge mortgage would be to: 

1. Speak to your broker: Consult with a professional mortgage broker who can assess your needs and help you understand the process. 
2. Discuss your options: Your broker will provide advice on the best lenders and products for your situation. 
3. Submit an application: Your broker will handle the application and supporting documents, such as proof of income and property valuation. 
4. Approval and funding: Once underwritten and then approved your second charge mortgage would be paid out. 

Here at Interbridge Mortgages, we only accept applications through a pre-approved panel of brokers. We’re committed to working with our brokers to deliver tailored second charge mortgage solutions. If you don’t already have a broker, we recommend finding one to help you explore your options. 

Eligibility for a second charge mortgage depends on several factors, such as: 

• Equity in your property: You need sufficient equity to secure the loan. 

• Credit history: Lenders will assess your creditworthiness, though options may still be available for those with less-than-perfect credit. 

• Income and affordability: Your ability to make repayments will be evaluated. 

• Current mortgage status: You need to be up to date with your primary mortgage payments. 

• A first charge mortgage. It is a requirement that there is an existing mortgage on the property in order to take out a second charge mortgage.  

We recommend speaking with a broker who can assess your individual circumstances and advise on the best options available. 

Second charge mortgages can be used for any number of legal purposes. These can include: 

• Home improvements 

• Debt consolidation 

• Large expenses i.e., school fees, a wedding etc.  

• Business purposes i.e., tax bills.  

• Buy to let expenses.  

Simply put, it isn’t. A second charge mortgage is often called a secured loan or a homeowner loan. They are all secured against your property, and they will all sit behind your first charge mortgage, hence the requirements for customers of these types of mortgages to have an existing main mortgage already.   

If you are still at application stage and haven’t signed the documents, then you can just let your broker know that you no longer wish to proceed with your application with us.

If you have signed the loan documentation but are yet to receive the funds, then contact your broker or you can call us on 029 2254 0482.

If you have received the funds, your creditors have been paid and it’s before the first repayment is due you can cancel your second charge mortgage by repaying the amount borrowed in full, plus any interest that has been incurred.

Should your first repayment have been made, this will be treated as an early settlement and you may be charged an early repayment charge, depending upon the product selected.

Your broker will be best placed to advise you of the next steps in your application and how long these can take. At Interbridge Mortgages, once your application is submitted generally customers will receive their funds in 10 days. However, over half our applicants receive their funds within 7 days.  

If you have chosen a fixed rate second charge mortgage, your broker should contact you towards the end of the fixed rate term to discuss your options and help advise you of the best course of action going forward. 

If you have any questions throughout your application, you should contact your broker in the first instance.  

Your broker will be arranging your second charge mortgage, but they do not lend you the money. They will advise based on your situation and then make an application on your behalf to the appropriate lender. That’s where we come in. At Interbridge Mortgages, we are the lender who will provide your second charge mortgage, and therefore when you make your repayments each month, they will be to us as the lender.  

As we only work through intermediaries, the best person to contact about the status of your application is your broker or financial advisor. They will have the most up-to-date information about your application’s progress. If necessary, they can reach out to us directly on your behalf for further clarification or updates. 

Can’t find the answer you’re looking for? No problem. Your broker will be able to answer any queries you may have regarding your application.  

Whether you are eligible for a further advance will depend on various factors, including your financial circumstances, the value of our property, and our lending criteria. To be eligible for a further advance, you must: 

• Have sufficient equity in your property to support additional borrowing. 

• Meet affordability requirements, demonstrating that you can comfortably manage the repayments. 

• Have a good payment history on your existing second charge mortgage and your primary mortgage. 

If you have been a customer with us for at least 6 months and are eligible for a further advance, you can apply through a mortgage broker. They will outline the benefits, risks, and costs involved and make the application on your behalf. 

If you pay off your first charge mortgage, your second charge mortgage will remain in place until it is fully repaid. Your monthly payments will continue as normal. 

APRC stands for annual percentage rate of charge. It shows you, as a percentage, the annual cost of a mortgage over its lifetime. It brings together all charges for your second charge mortgage (such as fees and variable interest rates) calculated for the full term. 

Because some mortgages can offer a lower rate of interest for the first few years, the way the APRC is calculated reflects this. Whilst the more familiar APR includes just one rate, and fees, APRC is designed to help show the impact that different rates and any charges could have over the lifetime of the mortgage. 

APRC helps you compare the overall mortgage costs from different providers against the same parameters. Some mortgages may have a low introductory interest rate, but by the time you add in all the charges and factor in higher variable rates, it could work out more expensive – APRC helps borrowers see that. 

To review your second charge mortgage and ensure you're getting the best deal, follow these steps: 

• Consult Your Broker:  They can compare your existing deal with current market rates and products. 

• Assess Your Current Terms:  Look at your interest rate, monthly payments, and remaining balance. 

• Check for Early Repayment Charges:  Understanding these costs is crucial when considering switching to another product. 

• Consider Changes in Your Circumstances:  If your credit score, income, or property value has improved, you may qualify for better rates. 

Your broker can perform a comprehensive comparison of available options and recommend a tailored solution. Since we only operate through brokers, their expertise is invaluable in finding the best deal for your unique situation. 

When you sell your property, the proceeds will be used to pay off your first and second charge mortgages. Any remaining funds will be returned to you. 

It is possible to re-mortgage your first charge and keep your second charge mortgage, but we will need to review your case before you proceed. You will also need to speak to your solicitor as a legal document called a Deed of Postponement is required prior to remortgaging if a second charge is present. Please also be aware that remortgaging may affect your overall borrowing capacity. 

We do not offer the service of transferring your mortgage to a new property. If you are considering moving house, it is best to seek advice from a financial advisor to discover your options. 

While we don’t offer formal payment holidays, we can discuss potential options if you’re facing temporary financial difficulties. If this is the case for you, please contact us as soon as possible and we’ll be happy to help in any way we can. 

Of course – we want to make paying off your second charge as easy and flexible as possible for you.  

Yes – you can overpay on your second charge mortgage with us. Overpaying can reduce the overall term of your mortgage and potentially save you money on interest. To do so please contact our us on 029 2254 0482 between 9am – 5pm Monday to Friday and one of our customer service advisors will be there to help.  

First of all, don’t panic. Please speak with us. 

We know life doesn’t always go smoothly. We’ll do everything we can to help you, whatever the situation. If you know in advance that you might struggle, or if you have an issue that means you may or have missed a payment, the sooner you talk to us, the sooner we can help. 

If you don’t get in touch and end up falling behind on repayments, it could cost you more in the long run so please get in touch on 029 2254 0482 between 9am – 5pm Monday to Friday, where our trained customer support advisers are on hand to talk you through the options available. 

This depends upon the product chosen. Interbridge Mortgages offer fixed rate mortgages, as well as variable. Details of the interest rate for your second charge mortgage can be found within your documentation, or if you haven’t yet completed the mortgage, within your offer letter. 

Only some of our products have no early repayment charges. On others, you may be charged an early repayment charge if you pay your mortgage off before your deal ends. For example, with a fixed rate product, a charge may be payable if the loan is repaid within the fixed rate period. 

For information on any early repayment charges that apply to your mortgage, please see your mortgage documents, or alternatively contact us  and we’d be happy to help. 

Repayments on Second Charge Mortgages are made monthly. 

You will have the option of choosing your monthly repayment date before the mortgage is completed. This can be any day between 1st & 26th of the month. 

If you’re not worried about setting a specific date, we’ll base repayments on the day your mortgage begins. For example, if you get your money on the 10th, the first payment will be due on the 10th of the following month, and so on. If your loan is paid out between 27th – 31st of the month, your repayment date will be 1st of the month. 

Once you’ve made your first payment, you can change the payment date if you need to between 1st and 26th of the month. You will need to give us 10 working days’ notice to make the change, otherwise the change will take effect the following month. 

If you would like to change your payment date, please get in touch on 029 2254 0482 between 9am – 5pm Monday to Friday and one of our trained customer service advisors will be on hand to help. You can change your payment date up to 2 times in any 12-month period.  

Yes – providing you do so before the first repayment is due you can cancel your second charge mortgage by repaying the amount borrowed in full, plus any interest that has been incurred. Should your first repayment have been made, this will be treated as an early settlement and you may be charged an early repayment charge, depending upon the product selected.