Second Charge vs Remortgage

Compare the total cost of raising additional capital using a Second Charge mortgage versus Remortgaging with additional borrowing.

Existing Mortgage

Details of your current mortgage

Outstanding Balance

Current Interest Rate

Remaining Years

Additional Months

Repayment Type

When does your current rate expire?

Early Repayment Charge (ERC)

How is your ERC calculated?

Percentage of balance

Fixed amount

ERC Percentage

ERC Free Allowance

Most mortgages allow 10% overpayment per year without penalty. Enter the total amount you can repay without incurring ERC. The ERC will be calculated on the remaining balance.

Property

Your property valuation

Estimated Property Value

Second Charge Details

How much do you need to borrow and expected terms

Amount to Borrow

Second Charge Assumptions

Expected Rate

Loan Term (years)

Fixed Period

Product Fee

Second charge rates typically range from 8-15%. If left blank, we'll use 9.9%.

Remortgage Details

Expected terms if you remortgage with additional borrowing

Note: Remortgaging will trigger your ERC if you're within your fixed period. If your current lender offers a Further Advance without ERC, that would typically be the cheapest option - check with your lender first.

Expected Rate

Fixed Period

Product/Arrangement Fee

Typical range: £0 - £1,999

Second Charge Tools

Compare Rates

See today's second charge rates

Check Affordability

How much could you borrow?

When is a Second Charge Better?

You have a low rate you want to keep
High ERC on your current mortgage
LTV above 85%
Need flexible criteria (debt consolidation)
Faster completion needed

What About Further Advance?

A Further Advance from your current lender is often the best option if available - typically no ERC and lower rates than second charge.

Contact your lender to check if FA is available. This calculator helps when FA isn't an option.