A second charge loan, what is it?

A second charge loan, often simply referred to as second mortgages, are a secured loan used to raise extra money instead of re-mortgaging or taking out a personal loan.

A new survey from specialist lenders has found that 76% of consumers do not know what a second charge mortgage is, resulting in homeowners missing out on a potential source of finance.

Of the minority who were aware what a second charge mortgage was, 28% did not understand the difference between this and a re-mortgage.

Despite the changes in the regulation and promotion of second charge mortgages following the Mortgage Credit Directive (MCD), it appears that many homeowners still are not aware of the second charge offering.

For some, a second charge mortgage is a far better option than a re-mortgage, so it’s surprising that so many consumers are unaware of what they are and how they work. If you are looking to raise capital from the equity within your home it is essential to seek professional advice as to the best way to proceed.

Second charge lending is growing in popularity and it is expected to boom in 2017 as the Brexit negotiations commence. Homeowners have made it very clear in recent surveys they want to reduce or consolidate any expensive lending they have.

Can we help?

If you are looking to take out a new loan please do make contact and one of our advisers will be happy to explain all the options open to you. https://www.second-charge-loans.co.uk/contact/