Second Charge Mortgages for All Your Needs!
Discovering a second charge mortgage shouldn’t be a complex process. With our advanced technology, you can easily secure the most competitive rates for second charge mortgages, ensuring you never pay more than necessary.
Decoding the Distinction
Second Charge Mortgages vs. Remortgages?
While often mistaken for being the same, second charge mortgages and remortgages are fundamentally different financial tools.
In the realm of remortgages, the existing mortgage is replaced entirely with a new one, be it through the same lender or a new one. This option suits many, yet for those already benefiting from a favorable fixed-rate agreement, remortgaging might not be as cost-effective as desired.
Enter the second charge mortgage, tailored for such scenarios. This alternative empowers you to borrow a specific sum against the equity you already possess in your property, without the need for a comprehensive remortgaging endeavor.
Is a second charge mortgage right for you?
For many individuals, opting for a second charge mortgage can prove more cost-effective than pursuing a remortgage, particularly if your existing mortgage carries early repayment penalties that would be incurred upon transitioning.
Remortgage Evaluation
Your current mortgage holds a low interest rate, and remortgaging might result in a higher rate.
Prepayment Penalty Impact
Your current mortgage incurs significant early-repayment fees, leading to higher payoff costs.
Simple application process
Our Second Charge Mortgage Rates Outshine Your Current Lender’s Offer
Low Credit Rating
Your diminished credit score increases the cost of home remortgaging.
From an award-winning broker
We Rapidly Search Through Thousands of Second Charge Mortgages to Uncover the Most Competitive Mortgage for Your Circumstances
Expert advice with no upfront fees.
Mortgages from £10,000 to £500,000.
Whole of market access.
Terms from 5 to 25 years.
Adverse and bad credit considered.
Loan to values of up to 95%.
Trusted by 100’s of homeowners across the UK.
Everything You Need to Know Before You Apply for a Second Charge Mortgage.
How does it work?
Tailored to homeowners like yourself, a second charge mortgage is a secure loan crafted to meet your needs. By utilizing the equity you own in your property, these mortgages empower you to borrow additional funds.
Rest assured, your existing mortgage remains unaffected. Commonly referred to as ‘home equity loans’, second charge mortgages are entirely independent from your original mortgage, leaving your repayments unaffected.
How much can you borrow?
As a rule of thumb, you can borrow more money with a second charge mortgage than a personal loan. In fact, with your home as collateral, you can borrow up to the total amount of equity you have in your property. This could be anywhere from £10,000 all the way up to £10,000,000, depending on the value of your home and how much of it you own outright.
Use our loan calculator to get a quick idea of how much you could borrow and how much your monthly repayments might be.
Will you be approved?
As with most loans, lenders will check your credit history, credit score, and personal circumstances to decide if you qualify when you apply.
However, because you’re borrowing against the value of your property, lenders will also want to know the value of your home, how much you have left to pay on your mortgage and the details of any other homeowner loans you may have secured on the property.
Luckily, we’ve built up relationships with lots of lenders to find out if you’ll be approved before you apply, keeping your credit score safe and secure.
How do you pay my second charge mortgage back?
One of the great things about second charge mortgages is that you can spread the cost over up to 35 years. That means that you’ll be able to lower your monthly repayments and make things more affordable if you need to.
Once you’ve decided how long you want to repay the loan over, your repayments will be collected automatically every month via Direct Debit.
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Frequently Asked Questions
What is a second charge mortgage?
Lots of people think that second charge mortgages and remortgages are the same thing, but they’re actually quite different.
With a remortgage, you replace your current mortgage with a completely new one either with your mortgage provider or a new lender. For lots of people, this is a good option. However, if you’re already on a pretty great fixed-rate deal, remortgaging might work out more expensive than you want it to be.
Representative Example for secured loans: based on borrowing £18,000 over 120 months. Interest Rate: 5.5% fixed for 60 months with instalments of £213.33. Followed by 60 months at the lenders standard variable rate of 5.7% with instalments of £214.36. Fees: Broker fee (£1,062); Lender fee (£595). Total amount payable £25,756.4 comprised of; loan amount (£18,000); interest (£6,004.4) including broker fee and lender fee. Overall cost of comparison 7.902% APRC. This means 51% or more of our clients receives this rate or better for this type of product. We have arranged borrowing with rates from 4.9% to 29% APRC which has allowed us to help customers with a range of credit profiles. We are a broker not a lender.
Secured Loans have a minimum term of 36 months to a maximum loan term of 360 months. Maximum APRC charged 29%.
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage or other debt secured on it.
If you are thinking of consolidating existing borrowing, you should be aware that you may be extending the terms of the debt and increasing the total amount you repay.