Secured loan or remortgage: compare the full cost
If you own your home and need to borrow more, the lowest advertised rate will not tell you which route costs less. Compare what happens to your existing mortgage, every new charge and both loans’ payments over the same period.
By Count Ready · Reviewed · General UK information, not a personal recommendation.
Your home may be repossessed if you do not keep up repayments on your mortgage.
What is the difference?
A secured homeowner loan, usually called a second charge mortgage, adds another loan against your property while your first mortgage stays in place. A remortgage replaces your first mortgage; it may also raise extra money. A further advance is extra borrowing from your current mortgage lender, if available. All three need an affordability and suitability assessment.
Second charge
Two secured loans and usually two payments. You keep your current first-mortgage deal, but you need to budget for its future rate as well as the new loan.
Remortgage
One replacement mortgage on the whole amount borrowed. Check the rate applied to your entire balance and any charge for leaving your existing deal.
Further advance
Your current lender may offer extra borrowing alongside the existing mortgage. The added amount can have its own rate, term and charges.
For the product explanation, see our second charge mortgage guide. This article focuses on how to compare your own figures.
Put these figures on one page before comparing quotes
The comparison starts with the deal you already have. Ask your lender for an up-to-date mortgage statement and, if relevant, an early repayment figure. You can then ask an adviser to set out realistic options using the same borrowing amount and purpose.
Balance, current rate and payment; deal-end date; remaining term; early repayment charge and exit fee; what rate may apply when the deal ends.
Amount and purpose, when it is needed and how long you expect to keep the borrowing. Avoid adding debts or fees without understanding the extra cost.
Rate and whether it can change; term; monthly payment; total amount payable; lender, broker, valuation and legal fees; charges for repaying early.
What happens if your first-mortgage deal ends, you move home, your income changes, or you want to repay the new borrowing early.
Ask for one comparison period. A five-year cost for one route and a twenty-year total for another do not answer the same question. Ask for the combined cost of all secured borrowing under each route over the same sensible period, with the assumptions shown. Longer-term totals still matter and should be shown separately.
Compare the whole arrangement, not just the new rate
Keep your mortgage and add a second charge
Add the cost and payment of the new loan to those of your existing mortgage. Include any second-charge fees, and ask what happens to the first payment when its current deal expires.
Replace your mortgage and borrow more
Use the proposed rate and term for the whole replacement mortgage. Include the existing mortgage’s early repayment charge, if any, plus product, broker, valuation and legal costs.
Ask your lender about a further advance
Check the extra borrowing’s terms alongside the mortgage you keep. A further advance is another quote to compare, not an automatic cheaper or simpler choice.
A lower rate on a full remortgage can be offset by changing the rate on a much larger existing balance or paying an early repayment charge. A higher rate on a smaller second charge can still be costly once its term and fees are included. The written figures, not a rule of thumb, decide the cost comparison.
Ask the adviser to show both your combined monthly payments and total amount payable. Where a fee is added to a loan, ask how much interest it will attract. If you expect to sell or refinance, compare the likely repayment and exit costs at that point as well.
When does each route deserve a closer look?
A second charge may merit comparison when…
- Keeping the current mortgage deal may avoid a substantial early repayment charge or repricing the whole balance.
- You have a clear additional borrowing need and can afford both payments, including a realistic change to the first mortgage later.
- Your current lender cannot offer a suitable further advance.
These points do not mean a second charge will be offered or suitable.
A remortgage may merit comparison when…
- The current deal is nearing its end or its exit charge is modest.
- A replacement mortgage for the whole balance could be suitable after fees, term and affordability are assessed.
- You want to consider the full mortgage arrangement, not just the extra borrowing.
One payment is convenient, but it is not proof of a lower total cost.
If an expense can wait, saving or borrowing less may also be worth discussing. A suitable unsecured loan would not put your home up as security, although its availability and cost still need checking.
Check the advice experience for yourself
Comparing two mortgage routes involves more than finding a headline rate. Read the original reviews in context, then ask an adviser to explain the figures and assumptions for your case. A client review cannot predict a lender’s decision.
Three situations that change the comparison
Your credit history has changed
Do not assume one route is easier because the property offers security. Both depend on current criteria, affordability and the property. If credit conduct is central, start with the adverse-credit secured loan guide or the bad-credit remortgage guide.
You want to consolidate debt
Replacing card or personal-loan debt with mortgage borrowing secures it on your home. A smaller monthly payment can mean paying more in total over a longer term. If payments are already difficult, contact your creditors and seek free debt advice from MoneyHelper (opens in a new tab).
You may move or remortgage later
Ask for redemption figures and early repayment terms for every loan. Tell a prospective new lender about a second charge. Do not assume it can simply be carried forward or that a future remortgage will automatically clear it.
What to bring to an adviser
A useful first conversation starts with your mortgage balance and deal end, the amount and purpose of the extra borrowing, an honest picture of income and household spending, and any planned move or change in work. If you have existing debts, include their balances, rates and payments. You do not need to guess whether you will qualify.
- Ask what will be compared. Include a further advance where available and sensible, as well as a second charge and remortgage.
- Ask for the assumptions in writing. The date your current deal ends, future rates used for illustration, fees, term and planned exit can change the result.
- Ask when a credit search happens. A callback is only an enquiry; any later lender search should be explained before an application.
- Read the fee disclosure and illustration. Count Ready’s initial evaluation has no fee; its Terms of Business explain charges that may apply if you proceed.
An appropriate outcome may be to defer borrowing or use a different route. The adviser can explain what additional evidence is needed before giving a personal recommendation.
Secured loan or remortgage questions
Is a secured loan cheaper than remortgaging?
Neither route is always cheaper. Compare the combined cost of your existing mortgage and a second charge with the cost of replacing the whole mortgage. Include any early repayment charge, all fees, the loan terms and what happens when your current deal ends. Ask for written, case-specific illustrations.
Does a lower monthly payment mean I will pay less overall?
No. Spreading borrowing over more years may lower the monthly payment while increasing total interest. Compare the total amount payable and any fees added to the borrowing, as well as whether both payments fit your household budget.
Will a second charge affect a later remortgage?
It can. A new lender will need to know about the second charge and its repayments. Ask both lenders how the second charge would be treated if you switch your main mortgage, sell or repay early. Do not assume that it can stay in place unchanged.
What if my current fixed mortgage deal ends soon?
Ask what happens to your first mortgage payment when the deal ends. A second charge leaves that mortgage in place, but its future rate and payment may change. Compare that scenario with a remortgage and any further advance using the same assumptions.
Is a secured loan easier to obtain with bad credit?
There is no general answer. Both routes depend on the lender’s current criteria, affordability, the property and your credit history. A second charge is not guaranteed because your home provides security. Our separate secured-loans-with-bad-credit guide covers that specific situation.
Should I use either route to consolidate debts?
Only after comparing the debts, total repayment, fees, monthly affordability and the risk of securing previously unsecured debt on your home. If you are already struggling with payments, speak to your creditors and seek free debt advice before taking on more borrowing.
Should I ask my current lender about a further advance?
Yes. A further advance may be a third route for additional borrowing, subject to your lender’s offer and affordability assessment. Compare its rate, term and charges alongside the second charge and remortgage quotes rather than assuming it is cheaper.
Read the guide that matches your next decision
Understand the product
Second charge mortgage advice explains the separate secured loan and its risks.
Review a replacement deal
Remortgage advice covers switching your main mortgage and borrowing more.
Credit problem involved?
Bad credit mortgage advice connects the relevant credit-history guides.
Talk through the figures before you apply
Tell Count Ready what you need to borrow, why and when your current mortgage deal ends. We can explain which figures are needed for a proper comparison and whether a closer review is worthwhile. An enquiry does not reserve a rate or guarantee a loan.
Count Ready is a credit broker, not a lender. Read the Privacy Policy before sending your details.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Sources and limits
This general UK guide was checked against MoneyHelper’s second-mortgages guide (opens in a new tab) and the FCA’s 2026 review of second-charge outcomes (opens in a new tab). Rates, fees, affordability and availability vary by case and can change. Obtain current written illustrations and personal advice; this guide does not set lender criteria or make a tax recommendation.