A second charge mortgage is – you guessed it – a mortgage against a property with an existing mortgage on it.
It’s completely separate from the first mortgage and comes from a different lender, but you do need your current lender’s permission before securing the second. So why think about a second charge mortgage? There are many reasons to consider it; maybe you want to avoid remortgaging as your introductory deal is still in place and your mortgage has ERCs (early repayment charges), or your current mortgage deal is really good and you want to make sure you don’t lose it through remortgaging. A second charge mortgage can also be a suitable option if you can’t get a further advance from your existing lender, or your credit score has declined since securing your first mortgage.