Second Charge Mortgages
Free up money while leaving your current mortgage in place. A second charge mortgage – sometimes called a secured loan – can be a good option if you’d like to borrow money while leaving your current mortgage in place. The new loan is secured on your property and is available for many different purposes. It can allow you to avoid the cost associated with a re-mortgage – an option taken by many customers who are unaware of the second charge market.
With a second charge mortgage your loan is secured against the value of the equity in your home much like your first mortgage. There are several reasons where a second charge mortgage might be worth considering, including:
- If you don’t want to extend the term on your current mortgage – or forgo the existing low rate on your current mortgage deal
- If your credit rating has gone down since taking out your first mortgage – remortgaging could mean you end up paying more interest on your entire mortgage, rather than just on the extra amount you want to borrow.
- If your mortgage has a high early repayment charge – it may be cheaper for you to take out a second charge mortgage rather than to remortgage.
- If you’re struggling to get some form of unsecured borrowing – such as a personal loan, perhaps because you’re self-employed.
- If you need to move fast and have funds available quickly – second charge mortgages are often a speedier option than a traditional remortgage