Secured Loans vs Remortgage: Which Is Right for You?

8 Sep 2026 · 4 min read

If you need to raise capital against your home, you have two main options. Here's how to decide which route makes more sense for your situation.

The core question

If you want to raise money against your home, you have two main routes: remortgage to a larger loan, or take a secured loan (second charge mortgage) alongside your existing mortgage. Which is right depends almost entirely on the terms of your current mortgage deal — specifically the rate, the outstanding term, and whether early repayment charges apply.

When remortgaging makes sense

Remortgaging is generally the simpler option and often produces a lower overall rate. It makes sense when your current deal is coming to an end anyway (no early repayment charges), when you want to consolidate borrowing into a single payment, or when the rate you can access on a new mortgage is meaningfully better than your current one. The application is more straightforward, legal costs are lower, and you end up with one monthly payment.

When a secured loan makes sense

If you're locked into a fixed rate with significant early repayment charges, breaking your mortgage to remortgage can be extremely costly — sometimes thousands of pounds. A secured loan allows you to raise the additional capital without triggering those ERCs. Similarly, if your current mortgage is on an exceptionally low rate you'd lose by remortgaging, a secured loan preserves that rate and adds the new borrowing on top as a separate facility.

Which is cheaper overall?

This varies by case and requires a proper calculation. A remortgage to a higher loan amount often carries a lower overall rate but triggers ERCs and legal costs. A secured loan may carry a higher rate on the additional borrowing but protects your existing deal. We model both scenarios for every client before making a recommendation — presenting a clear comparison rather than assuming one route is always better. The right answer isn't always the obvious one.

Have questions about your situation? Our team offers a free, no-obligation consultation — no upfront fees, just straightforward advice.

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