2nd Charge Loan Calculator
Calculate available equity behind your existing mortgage and model second charge loan costs.
Calculate your second charge loan
Regulated consumer finance rules apply if Yes
Max: (a × 70%) − b
* Additional fees may apply on a case-by-case basis: Legal Fees, Valuation Fee, Admin Fees, Title Insurance, General Insurance, Fund Transfer and others.
Enter your loan details above to see the cost breakdown.
Max 2nd charge = (Property Value × 70%) − Outstanding Balance. First charge lender consent required. Combined LTV typically 70% max for residential investment.
Results are indicative only. Actual rates and costs depend on your specific circumstances, security and lender. Learn more about 2nd Charge Loan
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75%
Max combined LTV (resi)
70%
Max combined LTV (comm)
2–4wk
Typical completion
£0
Upfront broker fees
What is a second charge loan?
A second charge loan is a secured facility that sits behind an existing first charge mortgage on a property. It allows a borrower to raise capital against the equity in their property without refinancing the first charge — preserving a preferential rate or avoiding early repayment charges.
The second charge lender takes a second legal charge at HM Land Registry. In the event of default and sale, the first charge lender is repaid first. The second charge lender is repaid from the remaining proceeds. This priority structure means second charge lenders advance to lower combined LTVs than first charge lenders.
Second charge loans are used for business capital, property investment deposits, tax obligations, debt consolidation and acquisition finance. They must be for business purposes — regulated consumer second charges are subject to different rules.
First charge lender consent is required before a second charge can be registered. Most first charge lenders will provide this as a standard process, though it adds 5–10 working days to the timeline.
The Process
Calculate Available Equity
Confirm the current property value and the outstanding first charge balance. The gap (minus the second charge LTV buffer) is the available second charge amount.
First Charge Consent
Notify the first charge lender and obtain formal consent for the second charge. Standard process — typically 5–10 working days.
Valuation
Second charge lender instructs RICS valuation to confirm current property value and equity available.
Legal Work & Drawdown
Solicitors register the second charge at Land Registry. Funds drawn to borrower once registration is confirmed.
FAQs
Frequently asked questions
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