What Is A Second Charge Mortgage?
What Is A Second Charge Mortgage is a type of loan that is secured against your home. It can be used for various purposes. For example, it can be used to fund improvements to your home or to pay off credit card debts.
The cost of a second charge mortgage will vary from lender to lender. It is important to compare prices before making a decision. If you are considering a second charge mortgage, you may want to consider getting advice from a specialist mortgage broker. They can help you find the best deal and recommend alternative mortgages.
Second charge loans are often a good option for people who are self-employed. These loans are also popular with property developers.
How do I get a second charge mortgage
Getting a second charge mortgage can be a great way to release equity from your property. It is also an excellent alternative to remortgaging. However, a second charge mortgage will usually carry a higher interest rate than your first mortgage. This is due to the risk involved for the lender.
If you have a bad credit history, it is still possible to get a second charge mortgage. You will need to meet certain requirements and have a good amount of equity in your home. Generally, lenders will require at least 20-30 percent equity.
As with a traditional mortgage, second charge mortgage lenders will value your home. They will also look at your income and outgoings. Your lender will then calculate how much you can borrow.