Second Charge Mortgage
What are second charge mortgages and secured loans?
Basically second charge mortgages are often called second mortgages (or secured loans) because they have secondary priority behind your main (or first charge) mortgage. They use the borrower’s home as security, just the same as a traditional main mortgage from a high street bank or building society would.
Second charge mortgages are offered by less well known financial institutions, as well as high street lenders. They are now fully regulated just like the traditional mortgages available from the more commonly known high street lenders.
Why consider a second charge mortgage ?
When you wish to consider other options in addition to a remortgage or further advance, we can prepare a second charge mortgage quotation for you in minutes. Second charge mortgages offer value to clients who are:
- Tied into a fixed mortgage with redemption penalties
- Benefiting from an existing low mortgage rate but wanting to raise capital
- Being offered a further advance with a higher rate
- Currently on an interest only mortgage product
- Wishing to capital raise for business purposes, including deposits for buy to let mortgages
- Needing to pay a tax bill
- Keen to retain their current mortgage product but have historic adverse credit
- Recently self-employed, retired or receive income from multiple sources.
- Lenders sometimes offer a more flexible view on circumstances or affordability than a traditional lender