2nd Charge Mortgage Calculator
Estimated Compensation
General Damages-
Range-
Special Damages-
Total Estimated Compensation-
Compensation Bands
| Type / Severity | Min | Max |
|---|---|---|
| Typical Rate Range | 3.5% | 15%+ |
| LTV Maximum | 75% | 85% |
| Loan Amounts | £10,000 | £500,000+ |
| Terms | 3 years | 25 years |
Key Facts
Typical Rate
5-10%
Max LTV
75-85%
Arrangement Fee
£500-£2,000
How to Use This Calculator
1
Enter property details
Input your property value and existing mortgage balance to determine available equity.
2
Set loan amount
Enter the amount you wish to borrow on the second charge.
3
Choose rate and term
Enter the interest rate offered and your desired loan term.
4
Select repayment type
Choose between capital and interest (repayment) or interest only.
5
Review your results
See monthly payments, total cost and LTV ratio. Compare with remortgaging options.
Frequently Asked Questions
What is a second charge mortgage?
A second charge mortgage (or secured loan) is a loan secured against your property alongside your existing mortgage. The first mortgage lender has first claim if you default. Second charges typically have higher interest rates but let you borrow without remortgaging.
How much can I borrow on a second charge?
Typically between £10,000 and £500,000, depending on your property value, existing mortgage balance, and affordability. Maximum LTV (combined first and second charge) is usually 75-85%.
Is a second charge mortgage right for me?
Consider a second charge if: you have a low rate on your first mortgage and do not want to remortgage, you have early repayment charges on your current deal, or your credit score has changed since your first mortgage.
What are the fees for a second charge?
Typical fees include: arrangement fee (£500-£2,000), valuation fee (£200-£500), legal fees (£500-£1,000), and broker fees. These may be added to the loan.
Can I get a second charge with bad credit?
Yes, some specialist lenders offer second charges to borrowers with adverse credit history, though rates will be higher. A broker can help find suitable lenders.
What happens if I cannot pay?
The second charge lender can repossess your home, but only after the first mortgage has been repaid in full. Seek debt advice immediately if struggling with payments.
Official Sources & References
- FCA — Second Charge Mortgages
- GOV.UK — UK Government Services and Information
- Citizens Advice — Borrowing Money
Data verified against official UK government and judicial sources. Last checked April 2026.