Second Charge Mortgage
avoid the higher interest rate
If you are looking to raise money for home improvements or anything of the sort, but are struggling to secure a loan, a second charge mortgage may be just the right avenue for you to opt for.
A second-charge mortgage – also known as a second mortgage – is a loan that can be looked at as an alternative option to remortgaging. Taking out a second charge mortgage can prove to be extremely beneficial in certain circumstances. Maybe you may be finding it difficult to qualify for a personal loan, possibly because you may be self-employed. Perhaps your current mortgage deal has high repayment rates, it may work in your favour for you to take out a second mortgage rather than remortgage to release equity from your property.
Or, taking out your first mortgage may have poorly affected your credit rating. In this instance, taking out a second mortgage will allow you to instead pay a higher rate and interest on the new amount you are wanting to borrow. Whereas, remortgaging could mean you ultimately end up being charged a higher interest rate on the entire mortgage, meaning you will be charged more interest overall.
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do things strategically
Your circumstances, however, may differ from the examples provided above. Regardless, there is a lot to think about when looking for a second-charge mortgage, no matter what situation you are in, and it is important to do things strategically so that you can avoid being charged more, that is why preparation is key.
Allowing experienced mortgage brokers to help you throughout the process can work well in your favour. Here at Eminence Mortgages, we are always on call to answer any queries you may have. We want the process to go as smoothly as possible for you; with years of experience within the industry, we can help do just that.
Contact us today for more information via Phone, Email, or simply fill out the form and a friendly member of our team will get back to you.