Second Charge Mortgages

Second Charge Mortgages

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What is a Second Charge Mortgage?

Second charge mortgages or second loans are often referred to as “second mortgages” because they have secondary priority behind your main (or first charge) mortgage. They are a secured loan, which means they use the borrower’s home as security. Many people use them as a way to raise money instead of remortgaging, but there are some things you need to be aware of before you apply.
• You must be a homeowner to get a second mortgage, although you do not necessarily need to live in the property.
• A second charge mortgage allows you to use any equity you have in your home as security against another loan. It means you will essentially have two mortgages on your home.
• A second charge mortgage can be a loan of anything from £1,000 upwards.
• Lenders now have to comply with stricter UK and EU rules governing mortgage advice, affordable lending and dealing with payment difficulties. This means that lenders now have to make the same affordability checks and ‘stress test’ the borrower’s financial circumstances as an applicant for a main or first charge residential mortgage.
• Borrowers will now have to provide evidence that they can afford to pay back this loan.
Our expert Advisers will be able to help you regarding what an affordability assessment might involve, and the evidence you may be required to provide to support your second mortgage application.

Mortgages Online
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When is it appropriate to take out a Second Charge?

• When you are already on a competitive mortgage rate
• When you are tied into your mortgage with heavy redemption penalties
• When you have an interest only mortgage
• When you need a larger sum over a longer term to reduce payments
• When your credit status has changed since your last mortgage was agreed 
• When you need early settlement flexibility
• When you need to raise capital for a non-traditional purpose
• When you are unable to obtain a re-mortgage or further advance 
• When soft credit searches at quotation stage is important

What can Bristol Mortgages Online offer you?

• Up to 95% LTV (unlimited LTV up to 10k)
• Rates from 4.45%
• Buy to Lets 85% LTV (rates from 5.45% + BBR)
• Loans between 5K and 2.5m - larger loans on referral 
• Loan term from 36–360 months
• CCJ’s, Defaults and Mortgage arrears considered
• Ex bankrupts & current IVA’s considered
• Self-employed loans available we will need proof of income using SA302, accountants' references or the last 2 years’ accounts.
• Various income types considered including some benefits
• Loans for any purpose

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER DEBT SECURED ON IT.
THE FINANCIAL CONDUCT AUTHORITY DOES NOT REGULATE SOME ASPECTS OF BUY TO LET MORTGAGES

For information and advice on second charge mortgages

Call Bristol Mortgages Online on 0117 325 1511

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