Important information before you apply

Your Optimum second charge mortgage application

It’s very important to ensure that our second charge mortgage is right for you. As part of the application your mortgage advisor will consider a number of areas including affordability, the equity in your property and the amount you would like to borrow. The advisor will discuss your specific requirements with you before recommending a suitable mortgage from Optimum's product range that recognises your individual needs and circumstances.

Before making your application we recommend that you read the important information below.

What do I need to know before applying?

Before proceeding with an Optimum Credit application, here are a few key criteria that you should be aware of:

  • You must own your own property, with a mortgage
    If you are an employed or self-employed homeowner, you can apply for a second charge mortgage with Optimum Credit. Minimum property values apply depending on the product we recommend to you. Unfortunately, we cannot offer mortgages to tenants. All second charge mortgages from Optimum Credit are subject to status.
  • Joint property owners must become joint borrowers
    With a mortgage from Optimum Credit, joint owners of a property must both become joint borrowers of the second charge mortgage.
  • Optimum Credit and responsible lending
    Second charge mortgages are a solution for many customers in a variety of situations and circumstances. As a responsible lender, Optimum Credit will only lend to customers who, as a result of the application process, we believe have the ability and intention to repay the second charge mortgage.
  • Acceptable borrowing purposes
    We will lend for the majority of purposes, for example, consolidating existing debts, home improvements and large ticket purchases such as a new car. Unfortunately, our lending criteria does not allow us to provide funds for the following purposes: transfer of equity, matrimonial settlements, or for business purposes.
  • Affordability
    We want to ensure your Optimum second charge mortgage is affordable and meets your personal and financial circumstances. As part of this assessment, it is important that you provide accurate details to help us assess your circumstances fully, including information about any foreseeable change to either your income or outgoings. This will help us accurately assess the affordability of your second charge mortgage. If there is any further information in relation to your financial circumstances, liabilities, health or general wellbeing that you believe should be brought to our attention when considering your application please let us know.
  • Credit reference agency check
    When applying to us for a second charge mortgage, we will check the following records about all applicants:The information provided from these records will be considered as part of the overall mortgage application process and will form part of our lending decision. If you would like to read the full details of how your data may be used please visit the Data Protection and Privacy section of our website.
    • credit reference agencies
    • fraud prevention agencies
  • Value and equity of your property

    One of the factors which determines whether Optimum Credit can offer you a second charge mortgage is the amount of equity in your property - also known as loan to value (LTV) ratio. The maximum that Optimum Credit will lend is up to 95% of your property’s value, less your existing mortgage subject to a minimum property value of £75,000*. Please note that in certain circumstances a valuation may be required on your property. If this is necessary, there may be additional costs to you to cover this. These costs will depend on the value of your home so please contact us for details.

    Here is an example of how this works:

    Property worth £200,000

    95% of the value £190,000

    Current mortgage balance £120,000

    Amount you could borrow £70,000

    So, based on the value of your home, in this example, you could borrow up to £70,000

Think carefully before securing other debts against your property.
Your property may be repossessed if you do not keep up repayments on your mortgage.

*£85,000 for mortgages above 85% LTV