If you already have a mortgage and want to borrow again, there are several options. A secured loan may be worth considering if your circumstances have changed, and remortgaging out of your existing deal isn’t the best option. Perhaps your employment status or credit rating has changed. Or perhaps the property needs significant repairs, and its valuation has slipped as a result.
Known as a 'second-charge mortgage', this loan is secured against your home and will run alongside – but independent of – your existing mortgage. It has its own rate and terms, so you could borrow over a shorter period than remains on your current mortgage. Which means you may pay back less in the long term, compared to remortgaging.
We know you’re more than just a credit report, that's why we get to know the person behind the numbers, so our underwriters make their decision based on your individual circumstances, every time. It’s not rocket science, but it means we can often lend when others won’t.
Do you want to quickly understand the potential cost of your mortgage?
We can give you an idea of the monthly costs with just a few details like the property value, your deposit amount and how long you need the loan to last.
Calculate costsIf you already have a mortgage and want to borrow more money to do some renovations, a home improvement loan may be for you. This 'second-charge mortgage' runs alongside your current mortgage and is secured against your home.
A home improvement loan has its own rate and terms, which means you could borrow over a shorter period than what’s left on your current mortgage.
When you compare this to remortgaging, you may end up paying back less in the long term.
Typically, you can borrow up to 250k for home renovations. Larger loan sizes can be considered on a referral basis.
For example: A mortgage of £85,000 payable over 21 years, initially on a fixed rate for 2 years at 10.55% (and then on a tracker rate for the remaining 19 years at 2.0% above the Together Homeowner Managed Rate (THMR) would require 24 instalments of £854.58 followed by 228 monthly payments of £865.74 plus a redemption administration fee of £110.00. Read more information on THMR.
The total amount payable would be £218,008.64 made up of the loan amount (£85,000) plus interest on the loan (£209,286.94), arrangement fee (£1,495) plus interest on this fee (£2,226.70) and the redemption administration fee (£110.00).
The overall cost for comparison is 11.5% APRC representative.
The actual rate available will depend upon your circumstances. Ask us for a personalised illustration.
Any property used as security, including your home, may be repossessed if you do not keep up repayments on your loan or any other debt secured on it.