Mortgage News & Guides

Secured Loans vs Remortgaging: Which Is Right for You?

2025-02-10 5 min read

When you need to raise money against your property, you typically have two options: remortgaging to release equity, or taking a secured second charge loan. Each has advantages depending on your circumstances.

When to Remortgage

Remortgaging makes sense when your existing deal has ended (you're on SVR), when you can get a significantly better rate, or when you need to borrow a large amount relative to your property value.

When a Secured Loan Is Better

A secured loan is often preferable when you're in a low fixed rate you don't want to lose, when you'd face early repayment charges to remortgage, or when your circumstances have changed and you might not qualify for a new first charge mortgage.

CM

Chess Mortgages

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Frequently Asked Questions

Is a secured loan more expensive than remortgaging?
Second charge rates are typically higher, but you keep your existing low-rate first charge mortgage. The total cost may actually be lower if your current mortgage rate is very competitive.

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