Second Charge Lending
A second charge loan is an additional, secured loan that you can take out in addition to your main mortgage to raise further funds. The loan is taken out against your property and is often used as an alternative to remortgaging. The loan is repaid in monthly repayments dependent on your lenders mortgage rates – just like your main mortgage.
Second charge lending has become a popular alternative to remortgaging for homeowners and there are many scenarios where second charge loans may be more beneficial to you:
- If your mortgage is fixed or discounted and it may have a high early repayment charge
- If your credit rating has fallen since you first secured your mortgage you may be declined.
- If you have a really good rate on your existing mortgage that you don’t want to lose.
- A separate second charge loan can be taken out over a different loan term to your main mortgage allowing you to budget effectively.
With any big financial decision, there are some general things to consider
- You will be paying back two separate amounts every month, your main mortgage and your new loan.
- A second charge mortgage may be at a higher rate than your main mortgage.
- Second charge lenders are often more flexible and bespoke in comparison to high street loan providers, meaning that they will provide loans in situations where some standard lenders won’t.
Making it easier to borrow more money without affecting your current mortgage
If you are considering taking second charge lending against your property to raise additional funds, we can help. Get in touch for independent advice on whether a second-charge loan is possible and we will source the most suitable product for your circumstances.
Book a free 30-minute introductory call.