What is a second charge mortgage?

Second charge mortgages are like remortgages, but, well, not… Lots of people think that second charge mortgages and remortgages are the same thing, but they’re actually quite different. With a remortgage, you replace your current mortgage with a completely new one either with your mortgage provider or a new lender. For lots of people, this is a good option. However, if you’re already on a pretty great fixed-rate deal, remortgaging might work out more expensive than you want it to be. In that case, a second charge mortgage might be for you. That way, you can just borrow the little extra you need against the amount of your house you already own. For example, if you own 30% of your £300K home outright, you could be eligible to borrow up to about £90K with a second charge mortgage and not have to go through the whole remortgaging process. That means that whether you want to fix a few things up, buy a new car or simply consolidate various existing debts into one manageable payment, a second charge mortgage could be a great way to free up some extra cash.