There are several reasons why a second charge mortgage might be worth considering:
- If you’re struggling to get some form of unsecured borrowing, such as a personal loan, perhaps because you’re self-employed.
- If your credit rating has gone down since taking out your first mortgage, re-mortgaging could mean you end up paying more interest on your entire mortgage, rather than just on the extra amount you want to borrow.
- If your mortgage has a high early repayment charge, it might be cheaper for you to take out a second charge mortgage rather than to re-mortgage.
Points to consider
Before you decide on a second charge mortgage, it’s a good idea to get advice from a suitably qualified mortgage adviser. They will be able to help you find the loan that best meets your needs and financial situation both now and in the longer term. They will have to follow the rules as set out by the FCA when dealing with you. These rules are designed to protect you.
If you choose not to get professional advice, you run the risk of taking a loan that isn’t suitable and this could cost you thousands extra in interest payments.
When you’re looking into a second charge mortgage, make sure you:
- Approach your existing lender and ask them what they would charge for an additional loan.
- Find out the exact mortgage terms, fees, early repayment charges and rates of interest.
If you would like to know more please do make contact and one of our fully qualified advisers will be happy to guide you.