Direct answer
First-charge lender consent for a second charge: where it comes from and how to handle it
We found no FCA rule that requires the first-charge lender to consent to a second charge. The requirement comes from the client's existing mortgage: many deeds say the borrower must not create another charge without the lender's written consent, and the lender usually enforces that with a restriction on the title at HM Land Registry.15
Where a Form P restriction is on the register, HM Land Registry will not register the new charge without the written consent the restriction asks for. Check the title register and the mortgage terms before you refer, not after the offer.41
Key points
- Consent is a contract term in the first mortgage, not an FCA rule.
- A Form P restriction on the title stops the new charge being registered without written consent.
- Some mortgage terms say consent must not be unreasonably withheld. Others give the lender a free hand.
- The ombudsman has upheld refusals where the lender's concern about its security was reasonable.
- Lenders' consent policies differ, and they don't have to publish them.
01
Where the consent requirement comes from
The obligation sits in the first mortgage. In a 2024 ombudsman decision about a Co-operative Bank mortgage, the deed said the borrower would not "create or allow to exist any mortgage or any other Security Interest upon the property without our prior written consent". The ombudsman said it could not compel the lender to consent, but did look at whether the lender considered the request reasonably.5
Wording varies. An HSBC mortgage reviewed by the ombudsman in 2023 said the borrower must not create another charge without written consent, and that HSBC must not unreasonably withhold it. The decision also noted that lenders' consent policies differ from lender to lender and that lenders are not expected to publish them.6
02
How the Land Registry enforces it
A new legal charge only takes effect at law once it is registered. A restriction is an entry on the register that controls when a disposition can be registered, and the registrar cannot register a disposition the restriction covers except in line with its terms.34
HM Land Registry says many charges include an application for a restriction along the lines of standard Form P, which calls for the consent of the proprietor of the charge. Form P has an optional "(other than a charge)" bracket, so read the exact wording on the title: whether a new second charge is caught depends on it.12
03
When the first lender says no
Refusals happen, and the ombudsman has upheld them. In the Co-operative Bank case, £186,000 of a £213,000 loan was to pay a capital gains tax bill, and the ombudsman found the lender's concern about historical tax demands reasonable. In a 2013 first direct case, the bank refused under its deed conditions and the ombudsman found it was entitled to protect its security.57
Where the terms say consent must not be unreasonably withheld, the lender still has room. In the HSBC decision, a policy broadly in line with the terms was found reasonable, because a second charge might increase the risk of the first mortgage payments not being met.6
04
What to check before you refer
None of this needs to slow a case if it is known at the start. The checks are quick and they belong on the file.
- The first-charge lender, the account number and the current balance
- Whether the title register carries a restriction in favour of that lender, and its exact wording
- What the mortgage terms say about further charges, if the client has them
- The purpose of the new loan, stated plainly, because the first lender will ask
- Any arrears or payment problems on the first mortgage, which make consent less likely
- Whether the client's goal could be met by a further advance from the first lender instead
05
How consent is handled when you refer to Charles Frank
When you refer a second charge case, we check the title and handle any consent request with the first-charge lender as part of running the case. Tell us at the outset if you already know the lender's position, and the case moves faster. You can follow the request in your portal alongside every other step.
Common questions
Questions answered
Is first-charge lender consent a regulatory requirement for a second charge?
We found no FCA rule requiring it. It is usually a term of the client's existing mortgage, enforced by a restriction on the title at HM Land Registry.
Can the first-charge lender refuse consent?
Yes, depending on its mortgage terms. Ombudsman decisions have upheld refusals where the lender's concern about its security was reasonable. Where the terms say consent must not be unreasonably withheld, the lender must consider the request reasonably.
How do I know if the title has a consent restriction?
Get an official copy of the title register from HM Land Registry. A lender's restriction usually follows standard Form P and names the charge whose proprietor must consent.
What happens if a second charge completes without consent the restriction requires?
HM Land Registry cannot register a disposition covered by a restriction except in line with its terms, so the new charge would not be registered.
Evidence
Sources and review
Material factual claims were checked against the primary and public-interest sources below. Product criteria and the wider market can change after the review date.
- 1Practice guide 19: notices, restrictions and the protection of third-party interests in the register
HM Land Registry. Standard Form P wording and the point that many charges apply for a chargee's consent restriction.
- 2Practice guide 29: registration of legal charges and deeds of variation of charge
HM Land Registry. Most chargee restrictions are in Form P.
- 3Land Registration Act 2002, section 40
legislation.gov.uk. What a restriction is, including restrictions that depend on obtaining consent.
- 4Land Registration Act 2002, section 41
legislation.gov.uk. No entry may be made on the register except in accordance with a restriction's terms.
- 5Ombudsman decision DRN-4478877
Financial Ombudsman Service. A deed clause requiring prior written consent, and a refusal found reasonable where most of the loan was for a tax bill.
- 6Ombudsman decision DRN-4044556
Financial Ombudsman Service. Consent not to be unreasonably withheld; lenders' policies differ and need not be published.
- 7Ombudsman decision DRN6200856
Financial Ombudsman Service. A refusal under the mortgage deed conditions, and the lender's entitlement to protect its security.
Published 1 November 2026. Last reviewed 1 November 2026.