Second Charge Loans

A Second Charge Loan is a loan secured against a residential or Buy To Let (BTL) property which sits behind or subsequent to the main mortgage, as a stand-alone product. Second Charge Loans are available to homeowners for any legal purpose including:

  • Capital raising for business purposes
  • Debt consolidation
  • Home improvements

Second Charge Loans are now regulated by the Financial Conduct Authority. Thistle has access to a diverse lender panel with Prime and Non-Status solutions, offering our introducers an advised sale and giving your clients the best advice on products.

Since the Mortgage Credit Directive, the Second Charge Loan market has seen significant change and is benefiting from keener pricing by lending institutes, making second charge products a viable alternative for capital raising outside of the normal re-mortgage model. As part of our best practice and due diligence process, Thistle offers our introducers a cost comparison facility for capital raising re-mortgages.

Whether your clients are raising capital for home improvements or releasing equity to raise deposits for BTL property purchases, Thistle has the knowledge and expertise to deliver the right product for your clients.

If you’re an introducer and would like to know more about Second Charge Loans and how we can help, call 0131 285 4778 to speak to one of our advisers.

Residential Properties

Thistle’s lender panel incorporates market leading rates, loan amounts from £3k to £2.5m capital and Interest and Interest Only products with up to 95% LTV across the whole of the UK.

BTL Properties

Thistle’s lender panel incorporates market leading rates, loan amounts from £5k to £2.5m Capital and Interest and Interest Only products with up to 75% LTV across the whole of the UK.

Criteria At A Glance

  • Interest rates from 3.74%
  • Loans are available up to 95% LTV
  • Buy to let Second Charge Loans available up to 75%
  • Up to £2.5m standard lending criteria (more available by exception)
  • Fixed rate products and interest only available
  • Market-leading commission

Second Charge Loan Overview

Considerations for Second Charge borrowing:

  • Clients have an interest only mortgage or a low rate mortgage that they do not wish to lose
  • Paying a Tax liability – first charge products do not cater for paying HMRC
  • Clients have suffered from credit impairment and wish to consolidate their outstanding debt however cannot re-mortgage
  • Clients circumstances have changed e.g. new employment with lower rate of pay precludes them from a re-mortgage. Typically, Second Charge lending allows for greater income multiples
  • Clients wish to borrow beyond normal retirement age
  • Re-mortgage product would incur a high early repayment charge
  • Clients wish to capital raise against their BTL portfolio to fund deposits for further property purchases without the intricacies and time constraints of the re-mortgage process