Second mortgages or second charge mortgages allow you to borrow a sum of money against the value of your property. The loan is secured on the property and is known as a second charge. Your main mortgage is known as a first charge loan. A residential second mortgage is ideal for people looking to release equity from their existing residential property. Finance can be raised quickly without affecting the existing mortgage.
Reasons for second charge finance:
- Any loan purpose
- Ideal if you want to protect your existing mortgage terms
- Where you are restricted in raising finance through remortgaging because of your circumstances or existing lender's criteria that prevents further borrowing
It is important to remember that, if you take out a second mortgage on your property, you will be expected to make repayments on this as well as your first mortgage. It is therefore important that you carefully consider the affordability of such a financial agreement.
Second mortgages are often referred to as home equity loans, homeowner loans or secured loans. If you are looking to find a particularly competitive deal on a second mortgage, we work with Fluent Money who are the UK's favourite loan broker. They will search their panel of lenders to find you the right loan so you don't have to.