Many home owners these days are looking for ways to raise capital which is safe and cost effective. Over recent years property values have increased substantially, many home owners will be pleasantly surprised to see the current value of their property.
In the majority of cases it is more cost effective to raise a loan using the house as security even if you have a mortgage secured against it already. An unsecured loan from a high street lender can be very costly indeed.
As an example if your property is currently valued at £220,000 and your current mortgage is £120,000 you have £100,000 equity.
There are many good quality secured lenders who would be interested in a second charge loan/mortgage on the equity within your home. The plus side of all this is the costs are affordable and can be set to your budget.
When you look at the so-called payday lenders and the interest rates they charge you will see the value this type of plan offers.
3 good reasons a second charge mortgage may fit your needs
- Your credit history may well not be so good now and you want to borrow to let’s say extend your current property, this could be the cheapest solution.
- You may be self-employed and having problems raising finance, this route could be the perfect solution by utilising your property.
- Some lenders will allow overpayments and early total repayments which can save a large amount of money on interest charged.
Need some assistance
If you think this type of loan could assist you in your future planning it is very important to ensure you get the right one to suit you. There are many different lenders offering numerous second charge loans so please do call our advisers who will be happy to help you achieve the correct loan for you.