Second Charge, Flexi Drawdown & Equitable Charge
A second charge mortgage lets you raise capital against a property you already own without touching your existing first mortgage. The loan sits behind your current lender as a second legal charge, so you keep the rate and terms you are on today while releasing equity for whatever comes next.
For clients on a low fixed rate, inside an early repayment charge, or on an interest-only arrangement they would rather not disturb, a second charge is often more cost-effective than remortgaging the whole balance. It is also a practical route where income has grown more complex since the original mortgage was arranged.
Soul Mortgages advises across the whole of the second charge market, from standard second charge loans and equitable charges to Flexi Drawdown, our flexible line of credit secured against your home. We structure the right facility for high-net-worth, self-employed and complex clients.
Your property may be repossessed if you do not keep up repayments on a mortgage or other loan secured against it.
What we arrange
Second Charge Mortgage
A separate loan secured behind your main mortgage, with its own term and rate. It suits raising a lump sum for home improvements, school fees, a tax bill or a deposit for a further purchase, without remortgaging or losing a favourable first-charge deal. Terms typically run up to 30 years, and the loan can be repaid or refinanced later once your circumstances change.
Equitable Charge
An equitable charge is a binding security registered over your property that does not require your first-charge lender’s consent, because it is not a registered legal charge. It can be put in place quickly and is useful where a first lender will not permit a formal second charge, or for shorter-term and bridging-style needs where speed matters more than headline rate.
Flexi Drawdown, a flexible line of credit
Flexi Drawdown is a revolving line of credit secured against your home. Rather than taking a single lump sum, you agree a limit and draw funds as you need them over an initial five-year period, paying interest only on the balance you have actually used, not the full facility. You can repay and redraw during that period with no early repayment charges, then the balance moves onto a structured repayment phase for the remainder of the term.
How Flexi Drawdown works
- Agree a credit limit based on the equity in your home.
- Draw funds as you need them, whenever you need them.
- Pay interest only on the balance you have drawn during the five-year period.
- Repay and redraw freely, or clear the balance early, with no penalty.
- After five years, any outstanding balance amortises over the remaining term.
What clients use it for
Case study: a £180k Flexi Drawdown for a company director
Flexible capital, without disturbing a fixed rate
A company director owned a £1.2m home in Surrey with a £620,000 first-charge mortgage on a competitive five-year fixed rate she did not want to disturb. She needed flexible access to capital to invest into her business and fund a phased renovation, but not the whole sum in one go.
Her income came from a director’s salary plus dividends. Assessed on the full salary-and-dividend profile rather than salary alone, the case supported the facility comfortably. We placed it as a second charge behind the existing mortgage, so her fixed rate stayed untouched.
She drew £70,000 at completion to fund the first phase of works and her business investment, paying interest only on that balance, with £110,000 still available to draw as later phases came up. With no early repayment charges, she can clear the balance whenever the business frees up cash.