A second mortgage, also known as a second charge mortgage, allows you to borrow against the equity in your existing property while keeping your original mortgage in place. Unlike remortgaging, you don’t replace your current deal ,you simply add another secured loan on top. This can be a flexible way to raise funds for home improvements, investments, or consolidating debt without disrupting your primary mortgage.

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Yes ,at Contractor Mortgage Solutions, we work with lenders who understand contractor income structures. Rather than assessing your eligibility through company accounts or payslips, we calculate your borrowing potential based on your current day rate and contract terms. This approach often allows contractors to access higher borrowing limits and faster approvals than traditional methods.

A second mortgage can be more suitable if your current mortgage has a low fixed rate you don’t want to lose, or if you’d face high early repayment charges by switching. It’s also ideal if your credit profile has changed, or if you only need to borrow a smaller amount for a specific purpose ,like home improvements or business investment ,without altering your existing deal.

The borrowing amount depends on your property’s equity, your day rate, and the lender’s criteria. Typically, contractors can borrow anywhere from £10,000 to several hundred thousand pounds, depending on affordability and loan-to-value (LTV). Our advisers provide a precise calculation after assessing your contract and financial goals.

Not necessarily. A second mortgage runs alongside your first mortgage, meaning your existing deal remains untouched. However, your first lender must consent to a second charge being added. Our team handles this process for you ,ensuring both lenders are aligned and that your financial position remains secure.

Generally, yes ,since second mortgages are secured behind a first charge, lenders take on a slightly higher level of risk. However, the rate difference is often marginal, and specialist brokers like CMS can access competitive second mortgage products that many borrowers can’t find directly.

Many contractors use second mortgages to release equity for home renovations, business expansion, debt consolidation, or even purchasing investment property. Because you retain your main mortgage, this option can be strategically beneficial for managing cash flow without disturbing your primary loan terms.

Yes. Since a second mortgage is a secured loan, it’s a legal charge on your property. Independent legal advice ensures you understand the implications before proceeding. We coordinate with your solicitor to keep the process simple and transparent.

A second charge mortgage appears on your credit file like any other secured loan. Making payments on time can help maintain or improve your credit score, but missed payments could have a negative impact. Our advisers ensure you understand all repayment implications before moving forward.