What is a Second Charge Loan?
When would you look to do a secured loan?
- When you have large redemption penalties on your existing mortgage.
- Have a lifetime base rate tracker you don’t want to lose.
- Have just changed jobs and your existing lender will not offer a further advance.
- Have very recent credit issues.
- Need funds quickly.
- Your current lender will not allow you to use the funds for certain purposes such as paying overdue HMRC demands or starting a business.
- You have expensive credit card or loans and are struggling to maintain payments.
- Looking to make that special purchase you have always wanted such as a dream holiday or to pay for a wedding.
Unlike traditional mortgage lenders, they can use higher income multiples to meet affordability.
Residential - Loans up to 100% Loan to Value available
Buy to Let - Loans up to 85% Loan to Value available
They can be completed far quicker than a traditional mortgage as no legals are required and sometimes there is no need for a physical valuation.
It is possible to obtain a secured loan even when your mortgage lender refuses to grant permission for the secured loan to be added behind your mortgage.
Think carefully before securing other debts against your home. Your home may be repossed if you do not keep up repayments on a mortgage or any other debt secued on it.
If you are thinking of consolidating existing borrowing, you should be aware that if you are extending the term of the debt, you may be increasing the total amount you need to repay.