Put the equity in your home to work.
Release capital to invest in your company, improve your home or consolidate costlier debt — by extending your mortgage or taking a second charge, whichever fits.
Two ways to raise capital
You can raise money against your home either by borrowing more when you remortgage, or by taking a second charge — a separate loan secured behind your existing mortgage. The right choice depends on your current rate, any early repayment charges, and how much you need.
Remortgage and borrow more
If your current deal is ending or uncompetitive, remortgaging to a larger loan is often cleanest — one mortgage, one payment. See remortgaging for timing.
Second charge
If you’re tied into an attractive rate, or a remortgage would trigger an early repayment charge, a second charge raises capital while leaving your main mortgage untouched.
What contractors use it for
- Business investment — injecting liquidity into a limited company for expansion or equipment.
- Home improvements — funding works that can also add value.
- Debt consolidation — folding higher-interest borrowing into one lower-rate payment.
- Raise capital by remortgage or by second charge.
- A second charge protects an existing low rate or avoids an ERC.
- Consolidating unsecured debt secures it against your home — weigh the total cost.
- Lenders assess the purpose and your contractor income together.
Think carefully before securing other debts against your home. Consolidating debts into a mortgage may reduce monthly payments but increase the total amount repaid over the term.
Lenders for capital raising — a selection
Capital raising, answered
How can I release equity from my home?+
Two main routes: extend your existing mortgage when you remortgage, or take a second charge — a separate loan secured against the property that leaves your main mortgage untouched. Which is better depends on your current rate and plans.
What is a second charge mortgage?+
A second charge is a loan secured against your home that sits behind your main mortgage. It’s useful when your existing rate is attractive and you don’t want to disturb it, or when remortgaging would trigger an early repayment charge.
Can I raise capital to invest in my company?+
Yes. Contractors and directors often release equity to inject liquidity into their limited company — for expansion, equipment or cash flow. Lenders will want to understand the purpose, which we set out clearly in the application.
Should I consolidate debt onto my mortgage?+
It can lower your monthly payments, but it secures previously unsecured debt against your home and may cost more overall if spread over a long term. We weigh the total cost and risk with you before recommending it.