Can You Get a Secured Loan Without Telling Your Mortgage Lender?

Why does a secured loan lender need my mortgage lender's consent?

When you took out your mortgage, the deed you signed gave your lender a first legal charge over your home. Almost every standard UK mortgage deed also contains a covenant that you will not create any other charge on the property without the lender's prior written consent. A secured loan is exactly that: a second legal charge, registered at HM Land Registry behind the first.

Many first charge lenders also place a restriction on the title register, so the Land Registry will not register a new charge until the first lender confirms it agrees. And the secured loan lender itself wants to know how much is owed on the mortgage and whether the account is in arrears, because that tells it how much equity it is really lending against.

So the honest answer is no. A small number of niche products have historically been offered on a "consent not required" basis by registering a notice rather than a full legal charge, but these are uncommon and usually more expensive. For the vast majority of secured loans, your mortgage lender will be contacted as a routine part of the process.

How does the consent process actually work?

You do not need to phone your bank. Once the secured loan lender is ready to proceed, it or its solicitor writes to your first charge lender with a formal consent request, setting out the amount being borrowed, the name of the new lender, and the fact that the new charge will rank behind the existing mortgage.

At the same time the secured loan lender asks for a redemption statement or confirmation of the current balance and payment history. That is how it checks your mortgage is up to date and calculates your combined loan-to-value. If you are unsure how much equity you have, our guide on how much equity you need to consolidate debt walks through the arithmetic.

Timescales vary. Some lenders turn consent requests around in a few working days; others commonly take two to three weeks, which is why consent is often the biggest variable in how long a loan takes to pay out. Many first charge lenders also charge an administration fee, commonly £50 to £300, usually deducted from the loan on completion. Your broker should tell you about this before you apply.

Can my mortgage lender refuse consent, and why do they rarely do so?

Yes, a first charge lender can refuse, and it does not have to give a detailed reason. In practice refusals are unusual, because a second charge does not weaken the first lender's position: if the property is ever sold or repossessed, the first mortgage is repaid in full before the second lender receives anything. Most lenders would also rather see debts dealt with openly than unknown unsecured borrowing building up.

The situations where refusal does happen tend to fall into a few groups:

• Your mortgage is in arrears, or has been recently.
• The combined loan-to-value after the new loan would be higher than the first lender allows, often somewhere above 85% to 90%.
• The mortgage product prohibits second charges, which is more common on some shared ownership, Help to Buy, Right to Buy discount period and later life mortgages.
• The title carries an affordable housing restriction the first lender will not lift.

If consent is refused, the loan cannot complete with that lender. Your broker may then look at whether a remortgage that clears your debts and replaces the first mortgage would work better; our secured loan vs remortgage comparison explains how the two routes differ.

What is a deed of postponement and when does it come up?

A deed of postponement is a document in which a lender that already holds a charge agrees to let another lender's charge rank ahead of it. It is not needed when you first take out a secured loan; it matters later, if you remortgage while the secured loan is still running.

When your original mortgage is repaid, its charge is removed, and the secured loan would technically move up to first place. Your new mortgage lender will not accept that, so it requires the secured loan lender to sign a deed of postponement confirming it will stay behind the new mortgage. Most secured loan lenders agree as a matter of routine, provided the new mortgage is not much larger than the old one, and commonly charge a fee for the deed.

So a secured loan does not stop you remortgaging later, but it adds one document and a little time. Ask your broker about the lender's approach to postponements before you commit, especially if your fixed rate ends soon. There is more in our guide on whether a secured loan affects your mortgage.

Does telling my mortgage lender put my existing deal at risk?

No. Consenting to a second charge does not change your mortgage contract in any way. Your rate, fixed period, remaining term and monthly payment all continue as before. That is why homeowners on a good fixed rate often choose a secured loan over a remortgage, as our guide on keeping your mortgage rate while clearing your debts explains.

What does change is your overall commitment. You will have two secured payments each month, to two lenders, and both must be kept up. If either falls behind, the lender concerned can ultimately take possession of your home, so the decision needs to rest on a payment you can afford comfortably. If you are already struggling with your mortgage, adding a secured loan is unlikely to be the answer, and free, impartial advice from MoneyHelper, StepChange or Citizens Advice should be your first call.