Second Charge Mortgage
Our Second Charge Mortgage Service
Why choose us for a second mortgage
Fair Mortgages can provide you with a first class service if you are looking for a second charge mortgage on your home.
Special features of what we offer include:
- Borrow from £10,000 up to £2.5m
- Access to leading market rates from 2nd charge lenders
- Access to exclusive loan deals not available on high street
- Fast turnaround - a property valuation may not be required
- We have lenders who will take into account previous defaults and missed payments
- As part of our service we can review whether remortgaging is a better option for you in raising finance.
To investigate your second charge mortgage options call our specialist team on 0117 313 7780 or fill in our call back form.
If you’re looking for finance, you may be wondering what a second charge mortgage, also known as a secured loan can offer you.
What is a second charge mortgage?
A second charge mortgage is a loan secured against the equity you own in a property. So for instance if you currently have a mortgage on a property worth £300,000 and you have £100,000 left to pay off then you own £200,000 of the equity of that property which you may be able to secure a second charge mortgage against.
Instead of remortgaging by taking out a second charge mortgage you can retain your current arrangements for your mortgage so you would not need to pay early repayment charges if applicable. You can also take out secured loans for shorter terms than mortgages which can save you money from interest accumulation.
Second charge mortgages may be more readily available to people who have an adverse credit rating than a standard personal loan or people who are self employed. They may also have lower interest rates than personal loans due to the lender having the security of the property placed on the loan.
A second charge mortgage still means that you risk your home being if you fail to keep up with your repayments. If you sell your property then your initial mortgage (first charge mortgage) would be cleared before any money could go to the second charge loan. The lender of the second charge mortgage can still pursue you for any money you owe them if there is a shortfall.
The money you raise through a second charge mortgage can be used for any reason you like such as car purchase, refurbishment, purchase of investment property or debt consolidation.
Second charge mortgages are available from a variety of different providers. If you would like to find out what secured loans/second charge mortgages might be available to you speak to our mortgage team on 0117 313 7780 or complete our callback request form.
Uses of second charge mortgages
You can use the capital raised by a 2nd charge mortgage for whatever reason you like, provided it is legal and not intended for commercial reasons.
As the maximum a lender is usually willing to loan as an unsecured personal loan is £25,000 secured loans can be way to secure larger amounts of finance for reasons such as carrying out home improvements, large purchases or debt consolidation.
Some people such as the self employed or those with an adverse credit history who could find it difficult to secure a personal loan may also consider second charge mortgages as lenders may be more willing to offer them due to the assurance of their being an asset secured on the finance. Homeowner loans may also offer a better interest rate than personal loans.
Alternative options to a 2nd charge mortgage
If your circumstances have not changed, and your mortgage does not have a large early repayment fee then you benefit more from a further advance or remortgaging with your lender than taking out a second charge mortgage. If the amount of money you wish to borrow is not large you may also want to consider a personal or ‘unsecured’ loan (between £1,000-£25,000) which have the advantage of not being secured against an asset.
If you want to find out more about getting a second charge mortgage then you may benefit from speaking to one of our advisers who can assess whether this route is right for you. With recent developments in the 2nd charge market rates are coming into line with those offered on a unsecured basis and general arrangement fees are also falling. You can fill in the online contact form on this page to request a call-back from a Fair Mortgages Adviser who can offer a free introductory consultation.
If you want to find out more about second charge mortgages, remortgaging or another aspect of mortgage you can fill in the online enquiry form on this website to request a call back from a Fair Mortgages advisor who can provide you with a free initial discussion.