Second charge mortgages are sometimes also known as Secured homeowner loans, these are personal types of loans which are secured by a 2nd charge on a property which has a mortgage already.

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Unsecured personal loans are expensive than secured personal loans, this is simply because with an unsecured personal loan there is a bigger risk for the lender. As long as the loan is secured via your property, this gives the lender the power to take your home from you if repayments cannot be made. Interest rates on a secured loan will be much less as the lender has your personal assets to recover from if anything goes wrong.

From £2000 to £150,000, secured loans are generally available within this range. Some lenders offer a time of 3-25 years to make repayments, however some lenders may lend much more and allow more time. Most lenders will gain up to 125 percent of the property value, however only with homes that are of low value.

An interest rate on a secured homeowner loan can be on either a variable or fixed rate basis. With a fixed rate it is likely to be more expensive, however gives you the security so that your repayments wont alter. Even if the lender decides to cut their lender rate only those who would benefit would be the ones who choose a variable rate.

For people in owner-occupied homes a second charge mortgage is normally made available. These properties are for example ex-council houses. Many lenders will lend to those landlord owners who already have tenants within the property. As for an everyday normal mortgage, interest rates will differ especially to those with impaired bad credit history, and those who are self-employed and borrowing capital without confirmation of their own bank or building society accounts.