A second charge mortgage is where the equity in your current home is used as security against another loan, and means having two mortgages against your home. This could be for anything upwards of £1,000, and is still subject to the usual affordability checks conducted against all mortgages. The second charge mortgage will be subject to the usual payment terms, with repossession a consequence if you default on the payments, and you will need to have enough equity in your property to cover the loan.
There are many uses to second charge mortgages. They can assist if you’re unable to obtain unsecured borrowing such as a personal loan, and it can be a cheaper option to remortgaging, allowing for a lower overall interest rate and no early repayment penalties. However, you should be aware that an second charge mortgage may run up to 25 years, and shouldn’t be used to consolidate small unsecured loans, as the amount of interest may be greater overall.
Your property may be repossessed if you do not keep up repayments on your mortgage.
This firm usually charges a fee for mortgage advice. The amount of the fee will depend upon your circumstances and will be discussed and agreed with you at the earliest opportunity.
At Aston & Co we have the experience and the know-how to help you find the best second charge mortgage deal to suit you and your budget. Our friendly and professional advisors are on hand to guide and support you in your choices. Contact us today to discuss your needs and pave the way to your happy-ever-after.