GBL
2nd charge
mortgages
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:
Best Advice:
- 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.
Flexibility:
- 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.
Headline features:
- 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.
