How Do I Apply for a Second Charge Mortgage?

Applying for a second-charge mortgage is something many homeowners consider, especially those wanting to refurbish their current homes, pay off other debts or for a life event like a wedding. But, how can you apply for one? This guide explores what people need to do to prepare for the application process, alongside who can offer second-charge mortgages and where might be best. 

Where Can I Apply For a Second Charge Mortgage?

There are a variety of lenders in the UK that offer second charge mortgages, including banks, building societies, specialist lenders, and second mortgage brokers. If you are looking to take out a second mortgage, we have compiled a few options for you to consider.

High Street Banks

Many high street banks offer second-charge mortgages, including Barclays, NatWest, and HSBC. You can apply easily online, by phone, or in person at a branch.

Building Societies

Building societies such as Nationwide and Yorkshire Building Society also offer second-charge mortgages, and you can apply in person at your local branch or online.

Specialist Lenders

There are also specialist lenders that focus solely on second-charge mortgages, such as Norton Finance or Shawbrook Bank, and you can apply for a second-charge mortgage from these types of lenders online or through a mortgage broker.

Second Mortgage Brokers

If none of the previous options suit you, consider going to a second mortgage broker to help you find the best second-charge mortgage deal for your needs. They work with a variety of lenders and can provide you with expert advice and support throughout the application process.

What To Consider

Before you apply for a second-charge mortgage, it’s important to thoroughly research and compare all the different lenders so you can find the deal that’s best for you. Make sure to consider factors such as interest rates, fees, repayment terms, and eligibility criteria. You may also want to consult with a financial advisor to ensure that a second-charge mortgage is the right option for your financial situation. Learn more about how to borrow more on your mortgage.

What Documents Do I Need To Apply For a Second Charge Mortgage?

To apply for a second charge mortgage in the UK, you will typically need to provide lenders with a fair few documents. It’s important to note that the specific documents required may vary depending on the lender and your individual circumstances, so to ensure you are prepared, we have compiled a list of all the documentation you may need to apply for a second-charge mortgage. Providing accurate and complete information as soon as you apply can help speed up the application process and increase your chances of approval.

Proof of Identity

This can be a passport, a photo driving licence, or a proof of age card such as a PASS card or citizenship card. It is also important to ensure your proof of identity is valid.

Proof of Address

This can be a recent utility bill, bank statement, or any other official correspondence with your address attached.

Evidence of Income

This can include payslips, tax returns, or bank statements. If you’re self-employed, you may be asked to provide additional documentation, such as business accounts.

Details of Existing Mortgage

You’ll need to provide information about your current mortgage, including the balance, monthly payments, and term.

Property Valuation

The lender you choose will typically arrange for a valuation of your property to determine its current value and the amount of equity you have.

Insurance Documents

You may also need to provide evidence of your home insurance policy by providing proof of purchase in the form of a receipt or bank statement.

Can I Apply For a Second Charge Mortgage Online?

Yes, you may be able to apply for a second-charge mortgage online. Many lenders offer online applications for second-charge mortgages, which can be a convenient and efficient way to apply for this type of loan. However, it’s important to note that the application process may be different for each lender, and some may require additional documentation or a physical appraisal of your property before approving your loan, so it’s a good idea to research your chosen lender and their application requirements before applying for a second charge mortgage online.