What are second charge mortgages?
Most loans are unsecured, a second charge mortgage is a loan secured on your home. This means you can borrow money using any equity you have as security. Given the dramatic rises in London house prices over recent years this could mean you have potential further borrowing available to you that you might not get from your main mortgage provider.
Why would you need to consider a second charge mortgage loan?
If you have a borrowing requirement that cannot be met by a conventional mortgage. For example you may not want to remortgage as you have a great deal on your main mortgage that you do not want to lose. Or your existing lender has already reached the maximum they are willing to lend, maybe you have high early repayment charges that you do not want to trigger?
There are justifiable reasons for taking a second charge mortgage on your property but you do need to get the right advice and that is why it may pay to have a no obligation chat with The London Mortgage Broker.
What can I borrow for?
Of course we are all different and have differing needs but examples of borrowing reasons could be:
- Debt Consolidation
- Home Improvements
- Business Funding
- Tax Bill
- Raise a Deposit on an investment property
- School Fees
You do need to be aware your home is required as security, the lender will take a legal charge over your property just like your main mortgage provider. The charge is removed once the second charge has been repaid. You will still own your property.
For a no obligation chat about second charge mortgages you can call The London Mortgage Broker on 020 3355 4841. Or of course you can email us
A mortgage is a loan secured against your home. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.