A second charge loan (previously known as a secured loan and sometimes as homeowner loans) is where additional borrowing is taken from a different lender to the main mortgage.
Such borrowing can be considered against either your main home or buy to let investment properties and is simply a personal loan that uses any free equity in your property as security.To qualify, you must own an existing property with a mortgage in place and they are often a cheaper and more affordable option than unsecured loans or personal loans.
This area of the market has become well established in recent years and is set to become more so in March 2016 when regulations in line with traditional mortgages are introduced.
Second charge loans can vary tremendously in terms of interest rates and fees, consequently advice specific to your circumstances is crucial. We work with a master broker which has a comprehensive range of lenders with affordable rates and payment options, and we will look to review options prior to making a recommendation which matches your needs.
Our second charge loans range from £10,000 upwards and examples of customers where we can provide a helping hand are:-
- Debt consolidation to reduce monthly commitments such as credit cards into one monthly payment
- Home improvements
- Unable or unwilling to re-mortgage or take a further advice due to your mortgage;
being on an interest only basis
being on a low rate “tracker”
no longer meeting the lenders affordability requirements
historic credit problems
- Freeing up a lump sum for any legal purpose (to buy a car, holiday, wedding or pay school/university fees
- Pay a tax bill
- Deposit for buy to let purchases
- Credit repair
- When funds are required quickly