A second charge Mortgage simply sits behind the 1st charge and there are two main areas were a 2nd charge could be an alternative solution to remortgage, further advance or an unsecured loan:
Customers tied to a fixed rate product and by remortgaging they would incur heavy redemption penalties.
Customers on a favourable low rate product and by remortgaging they would lose this rate.
If the customer is on an interest only Mortgage product and aren’t able to capital raise.
Loans for any legal purpose.
No income multiple restrictions on most products.
No credit score products.
Customers in a probation period considered as long as they have 12 months continuous employment.
One years self employed income is considered.
lenders will look at non standard construction properties.
Adverse credit ignored over 12 months old.
Most products have no ERC’S.
Unsecured arrears in the last 12 months ignored.
Loans from £10,000 – £1,000,000
Rates from 3.57%
£50,000 available to 95% LTV, £30,000 to 100% rates from 8%
Flexible draw down facility available
Term 3-30 years
The second charge is usually used as a stepping stone so the customer obtains the funds required that meets their needs until their circumstances change and they are able to remortgage when it’s best advised to do so.