After you have completed your mortgage with us, any additional loan you enter into which is provided by another lender which will be or is secured against your property is known as a second charge.

If you are arranging a loan with another lender which is to be secured as a second charge over your property behind your mortgage with us you must obtain our consent to do so.

Why do we need to consent?

As our mortgage is registered as a first legal charge over your property it is a condition of your mortgage that no further charge is to be created over the property without our consent.

How to obtain our consent

To obtain our consent to a second charge and to ensure that this can be registered against your property you need to contact our customer services team on 0344 770 8030. Your additional/new loan provider may do this on your behalf. Please note we do charge a fee for providing this consent and this is shown in our tariff of charges which you can access on our website.

Once our consent is provided, it is up to the lender providing you with the additional/new loan to progress the completion of that loan. There may be circumstances where we may not feel able to provide consent and we will advise you of this promptly together with the reasons why consent cannot be given.

Your ability to repay

When taking out an additional loan, you must ensure that you will be able to afford the payments on the loan on top of any other financial commitments you may have which will include the monthly or other payments you make in respect of any other loans you may have which have not been repaid in full. You should seek Independent Financial Advice before considering any changes to your financial commitments including entering into additional/new loan arrangements.

When you complete the additional/new loan and the second (or subsequent) charge is registered against your property, you will still have ownership over your home, however, if you are unable to pay back the any loan you have or fall into arrears with your loan repayments, you may risk losing your home as the additional/new loan provider can also take steps to repossess the property in these circumstances.

As your additional/new loan provider can take these steps is for this reason that you must let us know if you are planning to arrange a second charge so that we are able to ensure that our charge over your property is not affected.

If you are looking to enter into a second charge to be secured against your property which is mortgaged to us, please telephone us on 0344 770 8030 or email us at customerservices@foundationhomeloans.co.uk to discuss your requirements.

Your home may be repossessed if you do not keep up repayments on your mortgage