Second Charge Mortgages in Nottingham
Second Charge Mortgages | Mortgage Advice in Nottingham
Second Charge Mortgages, also known as a ‘secured loan’, is a loan that is secured onto your property. Secured loans normally come with a higher rate of interest and higher fees, as opposed to standard mortgages due to if a repossession happens, the provider has to wait until the original mortgage is repaid in order they are able to get their money back.
Although secured loans can be seen as more costly, more often than not they can be the right solution.
There are three main options that are available if you’re needing to raise money through your property. These include:
1. A further advance from your current Lender
2. A Remortgage to a new Lender
3. A Second Charge mortgage
If you’re only after a small amount then you should take some time to look at unsecured borrowing. By choosing to take out a secured loan will mean your current mortgage stays exactly as it is. The new borrowing that you undertake is with a different provider and a separate direct debit. Furthermore, the term of your borrowing can also be shorter or longer than your main mortgage.
There are many reasons as to why people choose to take out additional borrowing including home improvements, debt consolidation and injecting cash into businesses.
Second charge mortgages can be a suitable option for many scenario’s. Here are some of the main reasons as to why you should choose to go down this route:
· You want to retain your current mortgage because it has a low interest rate.
· You to retain your current mortgage because it’s interest only and you prefer to keep it that way.
· You are recently self-employed.
· Your income is derived from multiple sources.
· Your credit rating has deteriorated since you last took out a mortgage.
· You want to avoid remortgaging due to early repayment charges.
· You need to raise funds very quickly.
· You are looking to raise capital against your UK property to purchase foreign property.
· You prefer not to use your current Lender to raise funds.
· Your current mortgage lender has declined your further advance application.
· You want to raise funds to purchase another property which isn’t suitable for a mortgage (non-standard construction/property in poor repair).
· You need capital to pay business tax liabilities or to clear a business overdraft.