Second Charge Mortgage Options
Second Charge Mortgages, previously referred to as ‘Secured Loans’, ‘Second Charges’ or ‘Second Mortgages’, are an alternative to re-mortgaging which your Adviser will take into account when making any recommendation to you.
Essentially a Second Charge Mortgage is a separate loan where a property is used as security for the loan. This means that your main mortgage remains unaffected.
There are many reasons why a Second Charge Mortgage may be more appropriate when you are looking to raise extra funds, for example for home improvements or debt-consolidation*, including:
- Maintaining any beneficial rate you are enjoying on your current mortgage
- Allowing you to borrow over a different period than your existing mortgage
- Where you don’t meet the lending criteria for a re-mortgage
We are still able to consider applications from customers who have experienced previous credit problems such as CCJ’s (County Court Judgements), defaults, mortgage arrears or missed payments as long as their circumstances have improved and they are able to meet other criteria, including that they are able to afford the repayments.
Where you are looking to borrow additional money you should be aware that there are alternative finance options other than a first charge or second charge mortgage which may be suitable to you. This includes a further advance with your existing lender and/or an unsecured loan however we do not advise on these products and cannot therefore confirm whether they would be appropriate to you or whether you would be eligible.
* Think carefully before securing other debts on your home. If you are thinking about consolidating existing borrowing you should be aware that you may be extending the term of the debt and increasing the total amount you repay,
Your home is at risk if you fail to keep up the repayments on a mortgage or other debt secured on it. You will still have to pay your first and second charge mortgages if you lose your job or if illness prevents you from working. Think about whether you could do this.