Second Charge Mortgage Calculator
Require property finance advice?
Speak to us today...
A second charge mortgage, as the name suggests, is a new mortgage borrowed against your existing property without the need to remortgage.
It's secured on your property, ranking behind your primary or first charge mortgage in terms of priority.
It offers a flexible and potentially cost-effective way to raise additional funds while still maintaining your current mortgage arrangements.
There are numerous advantages to second charge mortgages. Whether you're looking to:
- pay for home improvements
- consolidate debts
- fund lifestyle expenses
- or even buy an investment property…
second charge mortgages are an accessible option and can sometimes be better than remortgaging, further advances or other types of loans depending on your specific situation.
Loan amounts can start from as low as £10,000 and offer competitive rates.
And there’s the potential to borrow up to six times your income or higher (more than remortgaging or further advances).
Second Charge Mortgage Calculator Last updated: 30th September 2025
Total LTV: --%
How to Use the Second Charge Mortgage Calculator
Follow these simple steps to estimate your monthly payments and interest rate for a second charge mortgage in just minutes.
1 Enter Your Loan Details
Start by providing information about the loan you're looking for and your property. Each field has a helpful information icon that you can hover over for additional guidance.
- Loan Amount - Enter the amount you wish to borrow. This must be between £10,000 and £500,000.
- Property Value - Input the current estimated market value of your property that will secure the loan.
- Existing Mortgage Balance - Enter the outstanding balance on your current first charge mortgage. If you own your property outright, enter 0.
- Annual Income - Provide your gross annual income. The minimum requirement is £15,000.
- Loan Term - Select how many years you'd like to repay the loan over, from 3 to 30 years.
Quick Tip
As you enter your details, you'll notice the Total LTV (Loan-to-Value) percentage updates automatically. This shows you the combined value of your existing mortgage and new loan as a percentage of your property value.
2 Review Your Total LTV
The calculator automatically displays your Total LTV percentage above the calculate button. This is important because:
- It determines what interest rate band you'll fall into
- Lower LTV percentages typically result in better interest rates
- The maximum LTV we can offer is 100%
The LTV is calculated by adding your existing mortgage balance and the new loan amount, then dividing by your property value.
3 Calculate Your Results
Once you've entered all your information, click the "Calculate Now" button. The calculator will instantly generate your personalised estimate.
Understanding Your Results
You'll see a clear breakdown showing:
- Monthly Payment: The estimated amount you'll pay each month
- Interest Rate: Your estimated APR based on your Total LTV
- Total LTV: Your combined loan-to-value percentage
4 Take the Next Step
After reviewing your estimate, you have two options to move forward:
Get a Quote
Click this button to speak with our team and receive a personalised quote based on your specific circumstances and credit history.
Book a Call
Schedule a convenient time to speak with one of our specialist mortgage advisors who can answer your questions and guide you through the application process.
Important Information
Remember that the calculator provides estimated rates and payments for illustration purposes only. Your actual rate and monthly payment may vary based on:
- Your individual credit history and credit score
- Full affordability assessment by the lender
- Current market conditions and lender criteria
- Additional factors such as employment status and financial commitments
All applications are subject to status and affordability checks. We strongly recommend speaking with one of our specialist advisors to get an accurate quote tailored to your situation.
Common Questions
What if my LTV is over 100%?
If your combined mortgage and new loan exceed 100% of your property value, the calculator will show an error message. You'll need to either reduce your loan amount or increase your property value estimate.
Can I adjust my loan term to lower my monthly payments?
Yes, selecting a longer loan term will reduce your monthly payments, but you'll pay more interest over the life of the loan. Experiment with different terms to find what works best for your budget.
What if I don't have an existing mortgage?
Simply enter 0 in the "Existing Mortgage Balance" field if you own your property outright.
How accurate is this calculator?
The calculator provides estimates based on typical lending criteria and rate bands. For a precise quote that reflects your specific circumstances, credit history, and the current lending market, please contact our advisors.
What are Second Charge Mortgages used for?
Second Charge Mortgages are versatile financial tools that can provide the flexibility you need to achieve various goals.
As they are essentially secured loans taken out against the equity available in your property, they offer an additional funding avenue without altering your existing mortgage agreement.
This unique setup allows borrowers to access substantial amounts of money without disturbing their first mortgage.
The funds from a second charge mortgage are typically available within two to three weeks, and loans can start from just £10,000, making them accessible and efficient.
Perhaps the most compelling aspect of second charge mortgages is the range of things they can be used for:
- Home improvements.
- Debt consolidation (possibly lowering your overall interest costs).
- Lifestyle funding (weddings, school fees, car purchases, and more).
- Business needs.
- Investment in property
Check out our Q&A on Second Charge Mortgages:
Latest Case Study Examples
The Benefits of Second Charge Mortgages
To understand how second charge mortgages fair compared to other finance options (such as remortgaging or a further advance), watch our video below.
Costs and Terms of Second Charge Mortgages
Understanding the costs and terms of second charge mortgages is vital to making informed financial decisions.
We believe in empowering our clients with the knowledge they need to navigate their financial journey confidently.
Several factors can affect the potential loan amount you can secure through a second charge mortgage:
First, your income plays a significant role.
Generally, you could potentially borrow up to six times your income, providing considerable borrowing power.
The loan-to-value (LTV) ratio, which represents the relationship between the loan amount (plus your first charge mortgage balance) and the property's value, is another crucial factor.
At Clifton Private Finance, we can source up to 100% LTV – but you just need to keep in mind that the higher your LTV, the higher your interest rate tends to be.
Finally, the type of property - residential or buy-to-let – can also influence your loan conditions, as well as your credit score.
Here are a few other aspects of second charge mortgages to be aware of:
- You typically have the option to roll up fees and add them to the loan amount, which can simplify repayments and release immediate financial pressure, freeing up your cashflow for home improvements, for example.
- You can also get second charge mortgages that come with no early repayment fees (ERCs) even with fixed rates, providing flexibility and peace of mind.
- The loan term can range from 1 to 30 years, allowing for adjustments based on your financial situation and repayment capability.
How to get a Second Charge Mortgage
Our video below goes into the details of securing a second-charge mortgage, from eligibility to the application process.
Using a Second Charge Mortgage Broker
When it comes to navigating the complex landscape of property financing, speaking to a mortgage broker can be invaluable.
We help clients every day with second charge mortgages, but also remortgaging, further advances and bridging loans – so, we can tell you which loan is the best for your situation.
Our extensive expertise spans residential and buy-to-let property transactions, and our team's collective knowledge equips us to handle every unique situation with professionalism and insight.
We are a whole-of-market broker, meaning we don’t just have a select panel of mortgage lenders we can go to. So, we provide market-leading rates on all types of mortgage.
FAQs
How much can I borrow on a second charge?
You can potentially borrow up to six times your income or more with a second charge mortgage. And you can generally borrow up to 100% of your property value across both your first and second charge mortgages in total.
At Clifton Private Finance, we can source loan amounts starting from £10,000.
How does a second charge mortgage work?
A second charge mortgage allows you to borrow money, secured against the equity in your property, without changing your first mortgage. They’re typically used for significant expenses, and the loan terms can range from 1 to 30 years.
Do I need a solicitor for a second charge mortgage?
Occasionally, a solicitor is not required for a second charge mortgage, reducing potential legal costs.
However, each situation is unique, and professional advice is recommended to ensure all legal requirements are met.
What is the maximum second charge mortgage?
The maximum amount for a second charge mortgage is typically determined by your income, equity, and the Loan to Value (LTV) ratio. At Clifton Private Finance, we can offer an LTV ratio of up to 100%, and at 6 times your income, or sometimes greater.
Contact Us
If you have any questions about our services or want to start making things happen please contact us
