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.