Second Charge Mortgage Guide
The fact is that second-charge mortgage can let you raise cash for things like home improvements but how do they work and is getting one a good idea?
And so incase you own your home then you are likely to have a mortgage but you may not know you can take out a second-charge mortgage or ‘second mortgage’ on your property to free up cash.
As an existing homeowner you may find yourself needing to raise some extra capital, perhaps for home improvements or debt consolidation. If you have equity in your current home, one option is a second charge mortgage, sometimes called a secured loan, a homeowner loan or second mortgage.
In this guide we’ve got everything you need to know if you’re considering a second charge mortgage, from the basics of how they work, through to which lenders offer them, and we’ll tell you how using a broker can help you secure the best rates.
Whether you want to raise money for home improvements or to pay off other debts – here’s everything you need to know about second-charge mortgages.
So Is second-charge mortgages a good idea?
If you are looking to use your home to raise money, there are alternatives, such as remortgaging.
This can work if the property is revalued and is now worth more than what you originally paid for it.
A second charge mortgage is a loan taken out using the equity in your home as security, alongside and in addition to your first mortgage.
Finally, a second charge mortgages are a common form of borrowing for home improvements or renovations, debt consolidation or other large items of expenditure.