Why Choose A Second Mortgage
FLEXIBILITY TO RUN ALONGSIDE YOUR EXISTING MORTGAGE
Second mortgages are incredibly flexible. If you’re currently enjoying the benefits of a competitive mortgage, be it fixed rate, discounted or a base rate tracker, then it might be in your best interests to stick with it. This is the perfect example of when it might be better to consider a second mortgage as opposed to remortgaging to a new first charge mortgage.
SAVE MONEY WITH A SECOND MORTGAGE BY AVOIDING EARLY REPAYMENT CHARGES
Many mortgages will have early redemption charges (ERC’s) included if you repay them fully before the full term. We recommend you check your mortgage terms and conditions.
If you do face early repayment charges, a way around these is to instead consider a second mortgage loan. Then at the end of any ‘tie-in’ period you can review your options – either remortgaging or maintaining the second mortgage depending on market conditions and your personal situation at the time.
A SECOND CHARGE MORTGAGE ALLOWS YOU TO EASILY RAISE FUNDS FOR ANY PURPOSE
Second mortgages don’t have to be property related. Although second charge mortgages in the UK can be obtained for home improvements and property renovations, many of our lenders are prepared to consider lending for purposes such as debt consolidation, payment of a tax bill, second mortgages for business expansion, school fees or weddings. Contact us to find out more.
FREEDOM TO BORROW AGAINST A BUY-TO-LET PROPERTY
A number of our lending partners are happy to consider lending against a buy-to-let property in the form of second mortgages, so ask one of our team for more information. We would recommend obtaining independent tax advice about this option.
GENEROUS AFFORDABILITY CRITERIA
While some of the high street banks can be cautious when it comes to including overtime and bonuses within your income assessment, many of our partner second charge lenders are often more flexible. If this extra income is seen as regular and consistent then our lenders are often prepared to consider it.