A second charge mortgage, also known as a ’secured loan’ or 'second mortgage' allows you to borrow money, whilst leaving your existing mortgage in place. A second charge mortgage requires you to provide your home as security. This means we take a legal charge over your property, in the same way a mortgage provider does. This will be removed once the loan is fully repaid.
Customers are at the heart of our business, and it is our priority to offer the best outcome possible for your circumstances. Our team and our brokers, have experience of all kinds of personal lending.
All our second charge mortgages are arranged through independent brokers.
Your mortgage adviser will go through a fact finding process with you. This is to understand your financial needs now and in the future and they will also discuss your current income and expenditure, along with any changes that you may foresee. They will then research and evidence the market, after which they will make a recommendation as to which product would be best suited to your circumstances.
Currently our maximum Loan-to-Value is 85%.
The minimum you can borrow is £5,000.
The maximum you can borrow is £500,000.
The minimum loan term is three years.
The maximum loan term is 30 years.
Yes, the minimum property value is £70,000.
Yes, we do lend to self employed applicants providing they have been self employed for at least 12 months. We will require the following as proof of income:
SA302 or tax computation dated within 21 months of the tax year end (being 31st of January) with the corresponding tax year overview and the latest month’s business bank statement
Two years’ SA302s or tax computations dated within 21 months of the tax year end (being 31st of January) with the corresponding tax year overviews and the latest month’s business bank statement
Shawbrook have a range of products available, from variable to 2 and 5 year fixed rates.
You can settle your second charge mortgage at any time.
Please call our customer enquiry line on 0345 650 6287 to request a settlement figure.
Your second charge mortgage is a capital and interest loan, therefore each monthly payment covers the monthly interest on the loan and a proportion towards reducing the loan itself. This means that each monthly payment reduces the capital amount that you owe (your loan balance). So your loan balance reduces over the term of the loan, and is repaid at the end of the loan term.
This assumes that you don’t miss any payments during the term of your loan.
Yes, you can overpay your loan with any amount, as often as you like and at any time during the term of your loan, free of charge. Your monthly payment will not change, but the term of your loan will reduce accordingly.
Our customer services team can help with any questions you may have. You can call them on 0345 650 6287 (8am to 8pm Monday to Thursday, 8am to 6pm Friday and 9am to 2pm Saturday, excluding Bank Holidays).
We are a responsible lender, and we will always deal with you honestly and sympathetically. Please tell us immediately if you can't afford the payments on your loan. If you can tell us before you miss any payments, we are much more likely to be able to help you.
If you are experiencing financial difficulty please contact us on: 03456 506 288
Our Financial Difficulty page has details of organisations who can provide free help and advice.
If you’ve been affected by Coronavirus, either directly or indirectly, and you think you might struggle to make your loan repayments, click on the links to see our Coronavirus page or complete our online form and one of the team will be in contact with you.
We may be able to increase the amount of your loan (we call it further borrowing), please contact our Broker Support Team on 0345 600 7681.
You should ensure that all the details on your application are accurate.
We rely on what you tell us in the loan application, and any details that turn out to be wrong will delay your application.
If your circumstances change after you’ve filled in your application, you must tell your broker immediately.
What does a Deed of Postponement application involve?
If you want to take out another second charge mortgage against your home with another lender, you will need to redeem your existing loan with Shawbrook so that your new lender can take a second charge behind your mortgage lender.
As the payment you have made is towards a financial commitment, we do not offer a refund. However should you need to discuss the payment, you can contact us on 0345 600 7681 9:00am – 5:30pm Monday to Friday. Alternatively you can email us at sl.direct@shawbrook.co.uk
Please note: We are unable to respond via email for security reasons.
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Shawbrook have a range of products available, from variable to 2 and 5 year fixed rates.
If you take a fixed rate product, once the fixed rate period comes to an end the interest rate will change to a variable interest rate. The variable rate charged can be changed at the discretion of Shawbrook Bank. The variable interest rate applied to your loan will not reduce below the rate as at the date of the mortgage.
We will require a property valuation. There are three types of valuations, the first is an automated valuation, known as an AVM or desktop valuation. This is completed online and Shawbrook will cover the cost of this. The second type is a physical valuation, where a person will visit your property to make an assessment. The third is known as a ‘drive-by’ valuation where someone will complete an assessment of the value of your home from the kerbside. Fees are payable upfront for both physical and drive-by valuations. Your broker will arrange the appropriate valuation for you.