Loan structure

First Charge

The first charge is the senior loan secured against your property — usually your main mortgage. It's repaid first from any sale proceeds before any other charges.

When you take out a residential mortgage, the lender registers a first charge against your property at HM Land Registry. This gives them legal priority — if the property is ever sold or repossessed, their loan is repaid in full before any other claims.

You can only have one first charge at a time. To replace your first charge lender, you remortgage — paying off the old mortgage and registering a new one. Adding a secured loan creates a second charge that ranks behind the first.

Most UK first charge lenders consent to a second charge being registered behind them. They have first claim on the property regardless, so a second charge doesn't reduce their security.

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