Why would you consider a second charge mortgage?
There are a number of reasons to apply for a second charge mortgage and they include.
Debt Consolidation
Home improvements/extensions
Helping with University fees
Helping your family with a deposit for their first home
Buy-to-let property purchase
Children’s tuition fees
Payment of a tax bill
Who can apply for a second charge mortgage?
A second charge mortgage is open to a variety of borrowers including contractors, freelancers and self-employed professionals but there are stipulations.
Firstly, and most importantly you must have an existing first charge mortgage on a property already. You must also be 18 years old and over, as well as being employed (be it in a contract or permanent work).
How do I apply for a second charge mortgage?
The second charge loan application process is similar to applying for a re-mortgage. An independent broker who specialises in offering second charge products will be able to gain access to a panel of lenders to ensure the quote you get is competitive and applicable to your particular set of circumstances.
Most second charge lenders only accept business through a registered Broker and in nearly all instances, the client does not need to instruct a Solicitor to act for them, which can help expedite the transaction. This is different to re-mortgage applications where a conveyancer/Solicitor is usually required.
Way forward
Second charge loans do not suit every need and it is vitally important any potential borrower seeks professional advice from a qualified adviser. If you would like to discuss a potential loan please do contact one of our fully qualified independent advisers.