Second Charge Mortgages
What is a Second Charge Mortgage? – A second charge mortgage is exactly what it says it is, its a secured loan that is secured against your home. The security lies with the lender in a sense that if all else fails you’ll pay them back by selling your home.
Guaranteeing your loan in this way means you can borrow larger sums. It also means you could get a loan even if you’ve struggled to get credit in the past.
What can I use a second charge mortgage for? – Second charge mortgages can be used for pretty much anything, from consolidating debts to home improvements to a big wedding day. Second charge mortgages are specialist and we work with a second charge specialist who will help you get the second mortgage you are looking for and make sure that you are not overstretching yourself.
- Second mortgages are guaranteed against your propertyWhen you take out a second mortgage, you’re promising to use your property to pay the money back if you can’t repay it in the normal way. That’s why second mortgages are usually aimed at homeowners who want to borrow relatively large amounts (£15,000 – £250,000 typically).
- Second mortgages are not dependent on your credit ratingBanks and other lenders can be more willing to lend if you offer security, which means these types of loan can work for you whether your credit rating is good, or not-so-good. The amount you can borrow, the repayment term and the interest rate depend on your circumstances, including the amount of equity you have in your property.
- You can borrow moreSecond mortgages are usually for amounts between £15,000 and £250,000. They are often called ‘second mortgages’. Remember, they are separate from the mortgage on your home which means any mortgage deals you have in place aren’t affected.
- You can arrange different payment termsThe loan is not linked to your mortgage, so you have the flexibility to structure it the way you want.