Second Charge Mortgage

What is a Second Charge Mortgage, and what can I use it for?

Interest rates have increased in the last 12 months, and lenders are now tightening their belts on consumers based on affordability and maybe feeling they may not be able to Re-mortgage or fear losing their initial 'First Rate Charge' interest rate.

A Second Charge mortgage is known as a Secured Loan / Home Owner Loan and the customer pays a higher rate of interest, leaves their current mortgage in place, and pays the cost of two mortgages.

This method can allow you to raise more funds tied up in your property or maybe you have Buy To Lets to consolidate your debts or improvements.

This could be a more cost-effective way than re-mortgaging their full balance at a higher rate. There are lenders who do not charge 'Early Repayment Charges' (ERCs), which give customers the option to repay the loan without penalty.

WORD OF WARNING

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 ANY OTHER DEBT SECURED ON IT

Having Rockstar Mortgages assess your financial details and your circumstances will help and guide you through what's best for you and benefit from our Residential 'Lifetime Mortgage Membership', saving you £000s (click here for more details)

Home Improvements & NEW Energy Performance Certificate (EPC) Legislation for Buy To Lets starting soon.

Thinking of renovating your current home or maybe you have a Buy To Let(s) in the background in need of modernising and would like to get ready for the new regulation for rental properties come 2025,

The new minimum required for BTL will be starting from 'C' to rent out a property. Planning ahead now could be your answer, taking no action could/will cost you fines.

Arranging a Second-Charge Mortgage can take it over a longer term, which could prove more beneficial than your standard conventional borrowings such as personal loans or credit cards.

Upgrading EPC for Rental

It is said from 'Shawbrook's Whitepaper', It could cost an average of £5,900 per property and a lot more if you own multiple properties. Plan ahead, book your appointment today.

Second Charge Mortgages do have other useful benefits such as:

A Wedding
Holiday of a Lifetime
Extending a Lease
Business Purposes
Buying a Second Home
University Fees
Transfer Equity
Cosmetic Surgery
Tax Bill
Mortgage Arrears
Loans/Credit Card Arrears

Second Charge Mortgages may not always be the best solution and could be fairly expensive for most borrowers.

Our Goal is to make you Money or Save it.

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FAQs
Second Charge Mortgage

What can it be used for?

There are a number of ways you can use, such as a Wedding, Home Improvements, Tax Bill, Car, Buy another property, you name it, we can look at your plans.

Does it cost more than my current mortgage?

Yes. A second charge doesn't have priority over the first charge, so this puts the new lender more at risk.

Are there any Early Repayment Charges?

There are lenders who do, and there are ones who don't for Early Payment Charges. Having a good plan of action, and a broker who will work this through for you.

I have Buy To Lets that needs to be brought up to speed for the new legislation that comes into effect soon. Can I have a Second Mortgage, and would it be beneficial for me?

Yes - This could be an alternative decision to lending, rather than applying for a Personal Loan or using up Credit Cards, which could cost you more. Our consultants will work out the best way forward.