Second Charge Mortgages
Second charge mortgages, also known as secured loans, are an alternative way to borrow a lump sum of money. They are repaid alongside your existing mortgage over a fixed term.
What Are Second Charge Mortgages?
A second charge mortgage allows you to borrow a lump sum while keeping your existing mortgage intact. This financial product is secured against your property, similar to your first charge mortgage. If you fail to repay the loan, the lender has the right to take possession of the property. However, unlike remortgaging, a second charge mortgage can be a cost-effective option if your current mortgage has high early repayment charges or if you wish to retain a particular mortgage product, such as a fixed or discounted rate.
Many individuals use second charge mortgages to fund home improvements, thereby increasing the value of their property. Others may use these loans to raise a deposit for their child's first home or for purchasing a second property, such as a buy-to-let investment. The versatility of second charge mortgages makes them a popular choice for homeowners seeking additional funds without altering their primary mortgage terms.
It's important to note that interest rates on second charge mortgages are often higher than those on first charge mortgages but lower than those on personal loans. This is because the loan is secured against your property, allowing the lender to recoup the loan amount through repossession if necessary. The interest rate will also be influenced by the length and amount of the second charge mortgage, as well as the equity available in your home.
At Finance Factors, we are dedicated to making the process of securing a second charge mortgage easy and straightforward. Our team of experienced mortgage advisers in Maidstone is here to help you understand your options and make informed decisions that will benefit you in the long run.
Make an appointment or speak to one of our advisers by filling out the form here.
Phone: 07785 954074
Address: 2 Kingsbroom Court, Kingswood, Maidstone, England, ME17 3ST
Email: kbl@financefactors.co.uk
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR OTHER LOANS SECURED AGAINST IT.
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Finance Factors is a Trading style of Finance Factors LTD who are an Appointed Representative of Advice Solutions LTD which are Authorised and Regulated by the Financial Conduct Authority. The Financial Service Register Number is 961681.
The Financial Conduct Authority does not regulate some forms of Buy to Lets.
There may be a fee for mortgage advice. The precise amount will depend on your circumstances, but will be agreed with you before proceeding.
Finance Factors is a Limited Company. Registered Address: Finance Factors Ltd, 2 Kingsbroom Court, Kingswood, Maidstone, England, ME17 3ST, United Kingdom. Registered in England and Wales under number 15814885.
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The guidance and/or information contained within this website is subject to the UK regulatory regime and is therefore targeted at consumers based in the UK. Some calls maybe recorded for training and monitoring purposes.