Second Charge Mortgage

Welcome to todays video where we will discussing second charge mortgages. 

What is a second charge?

Who can get a second charge? 

Why might you want one? 

And how we, at John Charcol, can assist you. 

What is a second charge mortgage? 

A second charge mortgage, also know as a secured loan, or a second mortgage, allows you to boorow additional funds while simultaneously keeping your existing first charge in place. 

What are the main reasons why someone may consider a second charge mortgage?

There are many reasons why someone may look to obtain a second charge mortgage. 

High early repayment charges: the most common reason is that you will be in a situation with your current mortgage lender that will not allow you to raise the addititonal funds and the early repayment charge will be too high for you to exit due to being a long term fixed rate. 

A second charge will allow you to avoid paying any early repayment charges and raise the funds that you need. 

Flexibility: a second charge mortgage is essentially just a loan. This means that even though it is secured against your home you can spend the funds as you wish. 

One of the biggest reasons why people choose to obtain a second charge mortgage is for home improvements and renovations. 

However, other reasons include: 

1. Starting a business 

2. Paying for a wedding 

3. Or purchasing a second property

How can John Charcol help? 

As a whole of market broker, John Charcol can review all of your options. 

1. Existing lender: Exploring further advances with your current lender.

2. Remortgaging: Assessing the costs and benefits of switching to another lender. 

3. Second charge options: Evaluating the best second charge mortgage deals available. 

By examining these options we ensure you get the best solution, giving you peace of mind.