Sometimes, doing a debt consolidation remortgage might not be your best option. Here are some reasons why; You have an excellent interest rate on your current deal and you do not wish to leave this, or. Your present Mortgage is on a fixed rate and remortgaging early could mean high early repayment charges or You have bad credit and might not qualify for a remortgage. The other main reason for a second charge mortgage is that people who have a less than-perfect, or bad credit score can still be in with a chance of being approved. Also, it might be easier to get a second-charge mortgage if you have a fluctuating income or are classed as self-employed.

In these circumstances, you can get something known as a second-charge mortgage. Your present mortgage will stay in place and another Lender will provide you with a second mortgage secured against your property. In other words, you’ll have two mortgages by two separate lenders on one property, with 2 monthly payments going out to 2 different lenders.

A second charge mortgage is a secured loan, which you take out against your property. You use any spare equity on your existing property to raise money. 

Affordability checks on a second-charge mortgage or secured loan are not as strict as a first-charge mortgage because your existing home is used as security, whereas with a second mortgage, you're simply taking out a brand new mortgage.

It’s called a second charge loan because it comes second in priority to paying off your first mortgage. For example, if you fail to keep up repayments or get into financial difficulties your house may be sold. The proceeds will go towards paying off your first mortgage, and the second charge mortgage after that is paid off.

A first, or standard mortgage, is a loan based on your credit rating, the size of your deposit, your income, and your general ability to repay the debt each month. Whereas a second mortgage is a loan based on the available equity in that same property

Equity is the value of your current home money, less the outstanding mortgage on it. For example, if your home is worth £300,000, and there is £100,000 left to repay on your current mortgage, you have £200,000 worth of equity.