Six reasons why you might consider a second charge mortgage application

15/01/2018

If you’re a homeowner and are looking to borrow funds, even for a non-property related reason, then a second charge loan is a great option to consider. There are a number of purposes that are accepted by second charge lenders - some of which might surprise you! This article highlights the six most common purposes we’ve come across when creating second charge loan proposals for our clients.

HOME IMPROVEMENTS
A second charge loan can be a better option for securing funds for home improvements such as a new kitchen or loft conversion than settling your original mortgage as it is more than likely that you would incur high early repayment charges (ERCs). 

DEBT CONSOLIDATION
If you are looking to consolidate short-term unsecured debt then one of the options available to you is a second charge loan. This can often be a hassle-free and cost-effective option so is worth exploring. 

PAYING A TAX BILL
Raising funds to cover an upcoming tax bill can be stressful. Many of the high street lenders do not accept the paying of a tax bill as a loan purpose, however in our experience second charge lenders will happily consider this a valid reason.

BUYING A HOLIDAY HOME
We’ve all seen TV shows such as ‘A Place In The Sun’ and dreamt of one day purchasing a holiday home in our favourite destination. That dream can come true! Many second charge lenders see this as an acceptable loan purpose.

PAYMENT OF SCHOOL FEES
It’s one of the more surprising ideas but nonetheless is a valid loan purpose with many second charge lenders. Give your little ones the very best education without the worry of how you’re going to cover the costs of school fees.

BUSINESS EXPANSION
Raising the finance needed to take your business to the next level requires careful thought. An alternative to using high street lenders to secure funds to expand your business is to instead look at a secured second charge loan. 

This is just a small selection of loan purposes accepted by second charge lenders. There are many more and you’ve come to the right place to find out more about them. Our team would love to hear from you and help you secure your application – whatever the reason!          

As a mortgage is secured against your home, it 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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