Second Charge
If a loan company is said to have second charge over your property, this means that you have actually taken two loans out against your property. Second charge means that should you default on your payments to such an extent that your property needs to be repossessed, the comapny with second charge gets the right to have the second bite at whatever revenue has been realised from the sale of the property. The first company you took out a mortgage with will have first charge over the property. Rights of first and second charge are lodged with the Land Registry so there is no confusion.
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