- First charge
- Primary claim on the property
- Second charge
- Sits behind the existing first charge
- Consent needed
- First charge lender usually consents
- Typical use
- Second charge: raise funds without remortgaging
What a first charge is
A first charge lender has the primary legal claim over the property, meaning they're repaid before any other lender if the property is sold or repossessed. Your existing mortgage, if you have one, is almost always the first charge, and it's registered at the Land Registry accordingly.
What a second charge is
A second charge sits behind the first, meaning that lender is only repaid once the first charge is fully settled. Because that's a weaker position, second charge lenders typically charge a higher rate, and the existing first-charge lender's consent is usually required before the second charge can be registered.
When each option wins
The right structure depends on whether you want to disturb your existing mortgage.
- Second charge wins if your existing first-charge rate is very favourable and you don't want to remortgage it
- First charge (via remortgage or bridge) wins if you're clearing the existing mortgage anyway
- Second charge wins for raising smaller additional sums quickly against equity
- First charge wins for larger sums where the existing mortgage will be repaid in full
Consent and practical hurdles
Most first-charge lenders will consent to a second charge being registered, but not all, and some charge an admin fee or impose conditions. This needs checking early, since a second-charge application can stall late in the process if consent isn't obtained upfront.
Frequently asked
Do I need my mortgage lender's permission for a second charge?
Almost always, yes — most mortgage terms require consent before another charge can be registered against the property.
Is a second charge more expensive than remortgaging?
Typically the rate is higher than a first-charge remortgage, but it can still be cheaper overall if your existing first-charge rate is very good and you'd lose it by remortgaging.
Can a bridging loan be a second charge?
Yes — bridging loans can be arranged on either a first or second charge basis depending on whether an existing mortgage remains in place.
What happens to a second charge if the property is repossessed?
The first charge lender is repaid in full from the sale proceeds first; the second charge lender only receives what's left, if anything.
Can I have a third charge on a property?
In principle yes, though very few lenders will offer this and it's uncommon in practice due to the risk position.
Need funds without disturbing your mortgage?
Tell us about your existing mortgage and what you need to raise and we'll confirm whether a second charge stacks up.
Related reading
Situations this applies to
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