A second charge mortgage, also known as a secured loan, is a financial arrangement that allows homeowners to borrow additional funds while using their residential or buy-to-let property as security.
The primary purpose of a second charge mortgage is to provide homeowners with a way to access capital without the need to remortgage their existing primary mortgage.
In essence, it’s a way to unlock the equity built up in your property. Equity is the difference between the current market value of your home and the outstanding balance on your primary mortgage. Second charge mortgages allow homeowners to raise capital on their property for any legal purpose, without disturbing the primary 1st charge mortgage.
For example, if you are currently in a fixed rate period with your current primary mortgage lender, you may incur an early repayment charge if you were to remortgage, so a second charge can be used as a stepping stone to raise the capital needed while you are in a fixed rate period.
If you have been declined a further advance from your primary mortgage, a second charge could be an option for you as their lending criteria is more relaxed.
There are other options to a second charge that may be best advice, based on your circumstances. At GoBear Loans we are here to help you each step of the way, providing clear advice so you fully understand the process, advice we are offering from our initial conversation through to completion, get in touch with a GoBear Loans advisor today to discuss your requirements.
There are other options to a second charge that may be best advice, based on your circumstances. At GoBear Loans we are here to help you each step of the way, providing clear advice so you fully understand the process, advice we are offering from our initial conversation through to completion, get in touch with a GoBear Loans advisor today to discuss your requirements.