Second charge mortgage calculator
Estimate the monthly cost of borrowing more against your home with a second charge mortgage, and compare it side by side with remortgaging your full balance.
Property and current mortgage
Additional borrowing
Estimated second charge monthly payment
£329
Current first mortgage
£1,100
New combined monthly
£1,429
Monthly increase
£329
Total repayable (second charge)
£59,198
Current LTV
48.9%
New combined LTV
55.9%
Total secured borrowing after second charge
£251,495
Lower LTV range
You may have a stronger equity position, although rates and eligibility still depend on your wider circumstances.
What is a second charge mortgage?
A second charge mortgage is a separate loan secured against your property. It sits behind your main mortgage, which is why it is called a second charge.
You keep your existing mortgage in place and borrow an additional amount through a separate secured loan.
When might a second charge mortgage be useful?
A second charge mortgage may be considered if:
- You are tied into a fixed rate with a large early repayment charge.
- Your current mortgage rate is lower than the rates currently available.
- You want to borrow more without remortgaging the full balance.
- You need funds for home improvements, debt consolidation or another major cost.
- You want to avoid changing your existing mortgage deal.
Second charge mortgage vs remortgage
A second charge mortgage keeps your existing mortgage in place and adds a separate secured loan. A remortgage replaces your current mortgage with a new one.
A second charge may be useful if you want to keep a low fixed rate or avoid early repayment charges. A remortgage may be simpler in some cases, but it could mean moving your full mortgage balance onto a higher rate.
The right option depends on:
- Your current mortgage rate
- Your current mortgage balance
- Your early repayment charge
- The amount you want to borrow
- Your property value
- Your income and affordability
- The rates and fees available
What affects second charge mortgage rates?
- Combined loan to value
- Credit history
- Income and affordability
- Loan size
- Loan term
- Property type
- Reason for borrowing
- Existing mortgage balance
- Existing mortgage payment history
Talk it through with us
Not sure whether a second charge or remortgage makes more sense? We can help you compare the options based on your current mortgage, equity, fees and borrowing needs.
Other mortgage calculators
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Remortgage calculator
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Loan to Value calculator
See your LTV ratio and how it affects the rates you can access.
Mortgage repayments calculator
Work out your monthly payment from the loan amount, rate and term.
Mortgage comparison calculator
Compare two deals side by side, including product fees.