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Second charge mortgages

We provide second charge mortgages for homeowners in England, Wales and Mainland Scotland with an existing mortgage. All our loans are provided through specialist intermediaries and we work hard to make sure we have a wide range of loans to meet our customers' needs.

Our loans are available in a few different formats, with rates ranging from 3.47% to 7.30%, with a representative APRC of 6.10%.

Why Paragon?

  • We offer attractive rates with a representative 6.10% APRC VARIABLE
  • We provide second charge mortgages of any amount between £20,000 and £500,000
  • We can offer a repayment term of 60 to 360 months
  • We make sure our loans are clear and easy to understand and you can always find out how your application is progressing
  • We do not charge a Telegraphic Transfer fee

Who we lend to

It’s important to us that we’re upfront about our mortgages so we want to make sure you’re clear about who we lend to before you apply.

  • We’ll consider you whether you’re employed or self employed
  • We are a responsible lender and carefully assess what money you have coming in and going out each month to make sure you can afford your loan
  • You must pass an affordability test and credit score
  • The property you’re securing your mortgage against must be in England, Wales or Mainland Scotland and must be your main home
  • We will consider the value of your home before offering a mortgage secured on it

Our types of loan

Fixed rate loan

A fixed rate loan means you have the same repayment every month for the length of your fixed rate term. Fixed rate loans are great if you want to know exactly how much your loan will cost each month. If market rates go up or down, you pay the same amount each month.

At the end of a fixed term, you will move to a variable rate mortgage. Rates on variable mortgages may be higher than a fixed rate mortgage, so you must make sure you can afford any changes to your payment amount once your fixed rate comes to an end.

Fixed rate loan summary

  • Know exactly how much you will pay each month during the fixed rate term
  • Initial fixed rate terms of 2 to 5 years available, depending on the loan product
  • Rates available from 3.64% to 7.30%
  • Loan is paid in Pounds Sterling and repayments are only accepted from income earned in Pounds Sterling
  • An early repayment charge may be payable if the loan is settled within the fixed rate period. The interest rate will change to a variable rate which be described in your mortgage illustration
  • Loan must not be used for business purposes
Variable rate loan

A variable rate loan is linked to a set interest rate that can go up or down. This means your monthly payments can go up or down in line with changes to the rate your loan is linked to.

Standard variable rate (SVR)

Standard variable rate loans, follow Paragon's SVR rate, currently 5.60% plus or minus a margin. Paragon can change its SVR at any time, meaning your monthly payments can go up or down in line with changes to our SVR.

Variable rate loan summary

  • Pay by monthly instalments or direct debit
  • Product fees for variable mortgages, where they apply, tend to be lower than for fixed rates
  • Rates available from 3.47% to 6.58%
  • Loan is paid in Pounds Sterling and repayments are only accepted from income earned in Pounds Sterling
  • If the rate goes up, your payments will go up too. This can substantially add to your monthly outgoings
  • Loan must not be used for business purposes

Representative example

  • Product:
    A second charge mortgage
  • Total amount of loan:
    £48,000 (including estimated broker fees of £2,505 and product fee of £495)
  • Term:
    240 months
  • Rate:
    5.15% (variable)
  • Cost of credit:
    £28,984.80
  • Payment and frequency:
    240 monthly payments of £320.77​
  • Total amount repayable:
    £76,984.80​
  • APRC:
    6.10%

Standard Variable Rate

Paragon Standard Variable Rate (SVR) 5.60%

Financial help

If you require independent financial advice for your mortgage or loan, we recommend a number of free independent advice organisations.

Find out more

FAQs

Here you will find the answers to some commonly asked questions relating to our products and services.

Find answers

Documents

We've collected all our useful documents in one place for your convenience.

Find your documents

Paragon Bank PLC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered in England number 05390593. Registered office 51 Homer Road, Solihull, West Midlands B91 3QJ. Paragon Bank PLC is registered on the Financial Services Register under the firm reference number 604551