Second mortgages
We specialise in providing fast, flexible second mortgage loans from a range of lenders nationwide.
Our mortgages (also known as “second charge mortgages”) are available from £10,000 up to £500,000. Interest rates start from as low as 3.34% and both fixed rate and variable rate loans are available with repayment terms ranging from 3 years up to 30 years.
We will always try to help you find the most suitable loan for your needs, as quickly as possible and with the minimum of stress.
A second mortgage can be used as a debt consolidation loan, a way of funding home improvements and renovations, or for many other purposes.
If you are thinking of consolidating existing borrowing you should be aware that you may be extending the terms of the debt and increasing the total amount you repay.
Getting a second charge mortgage
If you already have a mortgage against your home, you can potentially take out a second mortgage. As long as you meet the criteria laid out by a secured loan lender, you may be able to borrow a larger amount than would be available to you as an unsecured loan. It is important to remember that as this would be secured against your property, your home is at risk should you fail to keep up repayments.
What is a second mortgage?
A second mortgage is a loan secured against your home that has been taken out in addition to your first mortgage. They are often used when a further advance or additional borrowing from a first mortgage provider is not available. This form of borrowing is based around the equity in your property, and means that your property can be at risk if you are unable to repay your loan.
Getting a second mortgage will mean that you have two mortgages on your home.
What is a second charge mortgage?
A second charge mortgage is just another name for a second mortgage. It is a loan secured against a property that has been taken out in addition to your original mortgage.
Can I get a second mortgage?
We can help you look for a 2nd mortgage and do our very best to help you secure the right loan for your requirements. The amount that you can borrow will be based on the amount of equity in your property, your personal circumstances, and the amount that you can afford to repay. It is essential to make sure that you can repay any loans secured against your home as it will be at risk if you fail to keep up your repayments.
Rates for second mortgages
The interest rate that you will be able to get will depend on the amount of money that you want to borrow, the repayment term, and a number of other factors such as your credit history and how much finance you can afford to repay. As a second charge mortgage broker, we deal with many different lenders. We can provide second mortgage rates starting from 3.34% and repayment terms ranging from 3 years up to 30 years. We can find loans from £10,000 up to £500,000, and we will always try to get you the best interest rate possible with both fixed and variable second charge mortgage rates available.
How much can I borrow?
The amount that lenders will be willing to offer you will depend on several factors as explained in the “can I get a second mortgage” section above.
One factor that is very important in establishing how much you can borrow on a second charge mortgage will be the equity you have in your property. Not only will this be significant in deciding the loan amount that might be available to you, but also it is one of the key elements in determining which second charge mortgage rates you might qualify for.
The equity is the value of your home minus the amount you owe on the first mortgage. For example, a home worth £250,000 with £100,000 remaining on the mortgage will give you £150,000 in potential equity for a second charge mortgage.
Once you know how much you can borrow, it is important make certain that you completely understand the costs involved which is why you should consider speaking with qualified mortgage advisers, such as The Loans Engine’s team, to ensure you proceed with a suitable option which you can afford to repay - failure to make payments on your mortgage may lead to you losing your home.
Does the amount of equity affect a second charge mortgage?
Yes, it does. When you apply for a second mortgage, lenders will look at the amount of equity in your home when deciding how much they can lend to you. In general, the more equity you have in the property, the more you will be able to borrowing, and on lower interest rates.
