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Second Mortgages Explained

The second mortgage (also called an additional charge second mortgage or secured loan) allows you to make use of your capital (the amount you have) within your house as security against a loan.

Can I get an additional mortgage?

You have to be a homeowner but you don’t need to reside in the house for an additional mortgage.
You must have equity in your home
You must have a steady income, either through work or self-employment
You must be over the age of 18

Just like it sounds, in the event that you apply for an additional mortgage, you’ll be able to have at least two loans on your property.

A second mortgage could offer you a variety of positive benefits. You can:

Borrow a large amount. With a second loan, you can get up to £1,000,000, based on the equity in your home

You can be approved even without having a perfect credit score. Because the loan is secured on your home, you could be able borrow even with a low credit scores. Second charge loans can be a great alternative if you’re struggling obtain approval for personal loans (unsecured credit). This makes them a beneficial option for those who are self-employed and find it difficult to prove your earnings

Repay the loan over a longer time. We’d suggest that you repay the loan over the time that is most convenient for your budget A second mortgage could be repaid in up to 25 years.

Reduce your monthly expenses and make more cash. If you opt to take out the second mortgage option to consolidate debts it is possible to reduce the amount you have to pay every month for servicing debt. Of course the longer the loan term you select, the less monthly payments will be on the second mortgage. However, the faster you pay back your loan the less the amount of interest in the long run.

You can get a better price than you would get with the refinancing. A lot of mortgages have an early repayment fee which will be charged in the event that you choose to transfer to a new mortgage within a specified time. Even though an remortgage, or a new mortgage could provide a lower or better interest rate however, if an early repayment fee is in place, you might prefer to keep the loan you have and getting another mortgage.

You can choose to pay more. If your financial situation improves you’ll be able to repay more than you’re required to pay on your second mortgage, which will reduce how much interest that you pay.

Second mortgages are a great way to get a second mortgage.

Your second mortgage for virtually everything:

Enhance the value of your property through improvements to your home

Beautiful, well-thought-out new kitchen. A luxurious bathroom. A loft-style room to make use of of that wasted but useful space. Perhaps you’ve always dreamed of an extension. Or perhaps you’re desperate to make repairs or renovations to your house. Whichever home improvement project you’re considering whether it’s a simple refresh or an extension, using the second mortgage option for the purpose of home improvements could be a fantastic option to increase the value of your house.

Make money free-up with an additional mortgage for debt reduction

We’ve experienced it ourselves. It’s not difficult to get the combination of credit cards, loans or store cards, as well as overdrafts. The result is that you have cash flowing out of your account from all directions and at various times of the month. This is why some people choose second mortgages that allow them to combine a variety of smaller debts into a single cheaper loan.

Secured loans also provide a lot of flexibility with regards to the amount of the loan and the amount of time you can borrow it for (the time). You could be able to bring your debt under control by making a single monthly installment that you are able to be able to afford and maintain.

Cope with a large cost

It could be the time to go for it and you’re in need of the wedding and honeymoon. It could also be that you require a reliable car to go to work. A second mortgage can help you pay for those huge costs that you have to pay for.

Things to take into consideration when considering an additional mortgage

When used in a responsible manner If used with care, a second mortgage could offer you a wealth of benefits. Be aware that since it can be a secured credit in the event that you have financial difficulty in repaying the second or first mortgage, your property may be taken over and then sold to pay the dues. The first mortgage would have the first priority the remaining money being used to pay off that second loan.

Before you apply, make sure that you have

Be sure to think about:

What amount you would like to take out.
How long do you wish to lend it out for.
The purpose you’d like to borrow the money for.
The value that you are currently paying for your home.
How much are you still owing for your mortgage.

Then, why not request an estimate of the options available It won’t hurt your credit score and takes a few minutes. We invite you to contact us if have any concerns We’d love to assist you.