Equifinance

A second charge mortgage is a separate loan secured against a property that already has a first charge mortgage. It sits behind the first mortgage in priority: if the property were sold to repay debts, the first charge lender would be paid first, and the second charge lender from any remaining proceeds. The borrower makes separate monthly payments on each loan. The first mortgage remains completely untouched, preserving its rate, term, and any early repayment charge protection.

Remortgaging, by contrast, replaces the first charge mortgage entirely with a new deal, rolling the additional borrowing into a single larger mortgage. This can be simpler, but it is not always the best route. If the existing mortgage carries a low rate, or if an early repayment charge would apply, remortgaging can be more expensive overall than taking a second charge at a higher rate on a smaller amount. A broker can compare both routes for a specific case and confirm which is more cost-effective. The guide to secured loan vs remortgage covers this comparison in detail.

Equifinance offers four product tiers: Standard (up to 65% combined LTV, loans up to £150,000), Prime (up to 80% combined LTV, loans up to £250,000, clean credit required), Premier (up to 75% combined LTV, loans up to £150,000), and Adverse (up to 75% combined LTV, loans up to £250,000, specifically for borrowers with impaired credit). All four tiers offer terms from 3 to 25 years and both fixed and variable rate options.

The tier a borrower qualifies for depends on their credit profile, income, and the equity available in the property. A borrower with a clean credit history and strong income is likely to qualify for the Prime tier, which offers the highest LTV at 80%. A borrower recovering from a period of financial difficulty, with CCJs or missed payments on their record, would typically be assessed under the Adverse tier. The broker handling the application will identify the most appropriate tier based on the borrower's specific circumstances. Equifinance does not use automated credit scoring, so the tier assignment reflects a manual assessment of the full picture rather than a single score.

Yes. Adverse credit is a core part of Equifinance's lending proposition. The Adverse product tier is specifically designed for borrowers with CCJs, defaults, missed payments, debt management plans, and similar credit markers. The business does not use automated credit scoring, meaning every application is assessed by a human underwriter who considers the borrower's full circumstances rather than a single credit score. The underwriting team is also sympathetic to borrowers whose employment situation is non-standard, including those who are recently self-employed, new to their current role, or receiving income from non-traditional sources.

There are still limits. The severity, recency, and cumulative pattern of adverse credit all factor into the underwriting decision. A borrower with a single satisfied CCJ from three years ago and stable income is in a very different position from a borrower with multiple recent defaults and no demonstrable ability to repay. A broker experienced with Equifinance can give an accurate pre-application assessment. The guide to secured loans for bad credit covers how specialist lenders approach impaired credit profiles.

Loan amounts range from approximately £5,000 to £250,000, depending on the product tier and the equity available in the property. The Standard and Premier products have a maximum of £150,000. The Prime and Adverse products reach £250,000. The actual amount available depends on the property value, the outstanding first charge mortgage, and the combined LTV limit for the tier the borrower qualifies for. For example, on the Prime product at 80% combined LTV, a property worth £300,000 with a first charge mortgage of £150,000 (50% LTV) would have up to £90,000 of additional borrowing capacity before reaching the 80% ceiling.

Equifinance assesses affordability based on the borrower's income and existing commitments, not just the available equity. A borrower with sufficient equity but insufficient income to meet the monthly payments will not be approved. A broker can run the numbers before submission and confirm the likely loan amount and monthly cost for a specific case. The LTV and equity calculator provides a starting point for estimating the available equity in a property.

ECHO is Equifinance's proprietary broker portal, launched in May 2026. It provides intermediaries with an end-to-end application process from initial enquiry through to completion. The system gives brokers early-stage certainty that an application is approved in principle before it reaches a human underwriter for full assessment. CEO Tony Marshall described it as "the most user-friendly and effective broker portal in the second charge sector" at launch, with initial feedback from intermediaries highlighting the simplicity of the interface and the speed of the process.

ECHO is designed to complement, not replace, human underwriting. The portal automates the process around the decision, capturing information efficiently and routing cases to the underwriting team with all the data they need to make a manual assessment. For borrowers, the practical benefit is a faster and more transparent application journey. For brokers, the benefit is reduced uncertainty: a case that passes the ECHO DIP stage has a high probability of proceeding to offer without being overturned by a downstream automated filter.

The funds from an Equifinance second charge mortgage can be used for any legal purpose. The most common uses are debt consolidation (combining credit cards, overdrafts, and personal loans into a single secured payment), home improvements (extensions, renovations, new kitchens and bathrooms), major purchases (vehicles, equipment), and life events (weddings, school fees, relocation). Some borrowers use the funds as a deposit for an investment property or to pay a tax bill.

For debt consolidation specifically, the reduction in monthly outgoing can be substantial. A borrower paying £600 per month across three credit cards and an overdraft may reduce that to a single payment of £300 per month on a second charge at a lower rate. However, if the second charge term is significantly longer than the remaining term on the unsecured debts, the total cost of credit over the full term may be higher even though the monthly payment is lower. A broker will present both the monthly saving and the total cost comparison so the borrower can make an informed decision.

No. A second charge mortgage from Equifinance sits alongside the existing first charge mortgage as a separate loan. The first mortgage's rate, term, monthly payment, and any early repayment charge protection remain exactly as they are. The borrower makes separate payments to each lender. The first charge lender retains priority, meaning they would be paid first in a repossession scenario. Equifinance's second charge is registered behind the first charge at the Land Registry.

This is the primary advantage of a second charge over a remortgage for borrowers who want to preserve the terms of their first deal. If the existing mortgage is on a low fixed rate and a remortgage would replace that with a higher rate, a second charge on a smaller amount can be cheaper overall even though the second charge rate is higher than a first charge rate would be. The guide to secured loan vs remortgage compares the two approaches with illustrative numbers.

Yes. Equifinance Limited (Company No. 07324100) is authorised and regulated by the Financial Conduct Authority under firm reference number 717913. You can verify this on the FCA Financial Services Register at register.fca.org.uk. As an FCA-authorised second charge mortgage lender, Equifinance is subject to the FCA's conduct rules and Consumer Duty requirements. Borrowers have access to the Financial Ombudsman Service if a complaint cannot be resolved directly with the lender.

Equifinance products are distributed exclusively through intermediaries. All brokers introducing cases to Equifinance must themselves hold appropriate FCA permissions. The ECHO broker portal is available only to registered intermediaries. Equifinance covers England, Scotland, and Wales. The company has been FCA-authorised since its launch and has operated within the regulatory framework throughout its 13-year history.