Basically there are two types of loan, unsecured and secured. Unsecured lending is from a bank or high street lender and no security is required. Secured lending involves borrowing a sum of money and securing the amount against a residential property. Normally secured lending will have much reduced interest rates over unsecured and the loan amounts can be much bigger. Secured lending is better known as a mortgage 1st charge (main mortgage) or a 2nd charge (sits behind the main mortgage)
Second charge loans explained
Who can benefit’s from a second charge loan behind the main mortgage?
- You are in a tie-in period and do not want to pay a large penalty
- You need funds very quickly
- You have an interest only mortgage and do not wish to re-mortgage to capital & repayment
Why you might apply for a second charge loan?
- You wish to consolidate your outstanding loans and credit cards
- You wish to carry out home improvements
- You are looking to inject cash into your business
- You have had adverse credit and wish to speak to a company who will understand your situation
- You are self-employed and wish to raise finance for one of the above
Can we help?
If you would like more information on how this type of loan could help you pleased do contact one of our advisers.