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Secured Loans
There are a number of specialist lenders willing to advance finance secured by way of a second charge against the applicant's home, or other property, over a term of between 5 and 25 years. In general terms, the maximum combined loan-to-value (LTV) of the existing mortgage, plus the proposed additional borrowing, should not exceed 90%. In fact, some lenders will restrict the maximum LTV to 80% if for business purposes.
As the lender would be second in the queue for security, this involves a slightly higher risk which means that a higher interest rate would be charged, the interest rate depending upon the applicant's credit history.
If application is made for a secured loan, the lender would need to obtain permission from the first charge mortgage lender to be able to attach a second charge. This is normally not unreasonably withheld.