Second charge loans
Free up capital from your property
A second charge mortgage is a secured loan that allows you to use the equity in your property. Once secured this means you will have two mortgages on your property. This type of loan is an ideal alternative to a re-mortgage or other types of unsecured finance. However, please remember you will have two lots of mortgage debt and you may end up paying a higher rate of interest than for an ordinary secured loan.
A second charge loan can be a great option for clients looking to raise additional funds using their main home or investment property. A client with an existing low rate; fixed term product with large exit penalties or who currently fall outside their current lenders policy could find this option beneficial. Your credit file, personal situation and equity in the property will determine the rate and choice of lender.