Second Charge Mortgages or Secured Loans are quickly becoming part of mainstream lending, as more homeowners than ever before looking for an alternative to remortgaging or taking out a personal loan. These types of loans use the borrower’s home as security, helping them to raise funds against their property for a wide range of purposes. They are often used to raise additional funding when a homeowner’s existing lender will not, or cannot, release any additional funds.
Allowing homeowners to retain their current mortgage at a competitive interest rate, a Second Charge Mortgage is widely associated as being an option for those who have recently become contractors, people who need to raise funds quickly, property owners with a poor credit rating, as well as those looking to raise capital against their UK property to purchase premises abroad.
Second Charge Mortgages still need to be repaid alongside your first mortgage and if your home is repossessed, lenders will recover funds in order of their charge. Just like with any mortgage, failing to repay it could mean you’ll lose your home.
From raising funds for home improvements, or for the purpose of buying a new vehicle, through to paying for a wedding; there are a huge number of reasons why people decide to take out a Second Charge Mortgage or Secured Loan:
You can find out more about Second Charge mortgages and how they can benefit you in our Second Charge mortgage guide.
Opting for a second charge mortgage/secured loan will allow you to access an approved loan secured against your property, which is subject to underwriting and valuation by the lender.
In the majority of cases, homeowners that choose a second charge mortgage/secured loan as an alternative method of raising funds tend to borrow anything between £30,000 to £80,000. The more equity you have in your property, the more money you are likely to be able to borrow. All cases are reviewed on a case-by-case basis.
All loans are also subject to affordability calculations and credit status.
A second charge mortgage isn’t for everyone and there are alternatives such as re-mortgage with another lender, a further advance with your existing lender, and personal loans.
It’s always best to speak with a specialist before applying for any type of mortgage; to make sure you understand the process and what’s involved. You should also make sure that the mortgage or loan you’re applying for is the one that suits your individual needs best and that you are able to afford it.
A short, initial free consultation with one of our expert Second Charge mortgage advisers will ensure you get a tailored quote. Complete the form below to book your consultation, or call us directly on 01489 223 741