Frequently Asked Questions | The Second Mortgage Company


Why choose The Second Mortgage Company?

The Second Mortgage Company’s management team share over 50 years experience in the second mortgage market. We look at every application on an individual basis to ensure that we are able to offer you the most appropriate loan taking into account your circumstances and the 600+ loan plans available to us. 

What is a second mortgage?

A second mortgage (also known as a secured loan or second charge loan) is a loan secured against your property. Second mortgages are an ideal option to consider when you already have a very competitive first mortgage which you want to keep. They can be used for most legal purposes including home improvements, debt consolidation, business purposes, holidays and school fees. The loan is secured against your property which means that you can generally benefit from a lower interest rate and borrow over a longer term than an unsecured loan. You also need to remember that your home could be at risk if you were unable to repay the loan. We do not charge any upfront fees. Any fee that we or the lender charge can be addred to the loan or you can pay it from your funds. Where fees are being added it is worth remembering that you would be paying interest on the fees for the life of the loan.

How long can I take the loan over?

Second mortgage loans can normally be taken over between 5 and 30 years. The longer the term of the loan the more you would need to repay. Most lenders offer you the facility to make additional capital repayments (see terms of the mortgage offer). 

How long will it take to complete my application?

Although every application is different we aim to complete most applications within 2 to 3 weeks. As a general rule the quicker you return paperwork to us the quicker your application completes.

Can I pay my loan off early?

All lenders allow you to pay off your loan early. Some have early redemption charges which might equate to only one or two month’s interest. Any early redemption charge will be made clear to you before you take out any loan.

Can I make extra payments?

Most lenders allow you to make additional repayments. You will be asked if this is a feature that you require when applying for the loan.

Will my repayments change?

Our lenders offer a range of products. They include variable rate products which means that your repayment may change (up or down) if there is a change in the Bank of England base rate or changes in the cost of funding to a lender. Most lenders also offer fixed rate products which means that your repayment could be fixed initially for say the first 2, 3 or 5 years. This will be discussed when you apply for the loan.

Do I qualify for a second mortgage?

If you are a homeowner and have a mortgage then you will be able to apply for a second mortgage loan. When assessing a second mortgage application a lender takes into the account the amount they are lending you against the value of your (the “Loan to Value”), They will also take into consideration your credit history and pay particular emphasis into your income and your ability to repay the loan.

Can I apply for a loan if I have adverse credit?

Yes. We have a number of lenders who will consider lending where applicants may have county court judgements or defaults registered against them. Applicants with adverse credit may be considered higher risk which maybe reflected in the interest rate offered.

As a mortgage is secured against your home, your home could be repossessed if you do not keep up the mortgage repayments. Think carefully before securing other debts against your home.

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