2nd Charge Mortgages
Second-charge mortgages, also known as secured loans, are the perfect option for those looking to get an extra loan on top of their existing mortgage. Unlike remortgaging, a second charge mortgage will be added if you decide to 
switch your primary mortgage for another chance. Since the existing mortgage carries the first legal charge on your property, taking out a second loan would result in an additional legal ‘charge’ hence its name.
You may benefit from 2nd charge mortgages if you’re a homeowner. Even if the property isn’t your current residence, this helpful financing solution can assist in releasing the equity held within it. This adds weight to the title; 2nd charge mortgages | brilliant option.
When is the need for second-charge mortgages?
Second Charge Mortgages are often used to raise extra money for a specific reason. These could include significant repairs, extensions or personal costs. If you need additional funds and cannot access them through remortgaging or a 
‘Further Advance’, consider 2nd charge mortgages. Unfortunately, it has become more difficult for those who recently became self-employed or had variable income from running their small business to obtain further advances or new mortgages. Fortunately, 2nd charge mortgages provide an alternative solution so these individuals can still find the required resources. Rather than remortgaging and facing higher interest rates due to a lower credit rating, Second Charge Mortgages are the perfect alternative. This is also ideal when your current mortgage has high early payment fees, making it pricey to refinance.
Reasons to choose second charge mortgages
In answer to the question of whether 2nd charge mortgages are a brilliant option. Second-charge mortgages may provide a more suitable opportunity than a remortgage. Here are some of the reasons why:
- Keep away from Early Redemption Charges (ERCs): If you currently possess a mortgage, remortgaging carries the risk that an ERC can incur costs running into thousands. Avoid these exorbitant outlays by simply not switching your lender. = 2nd Charge Mortgages | Brilliant Option
- Retain low rates: If you enjoy the perks of a low-interest mortgage, remortgaging may have you also paying thousands in redemption fees that can sometimes run up to four figures. = 2nd Charge Mortgages | Brilliant Option
- Keep interest-only: Refinancing may mean switching to a repayment option with pricier monthly payments if your current mortgage is interest-only. Those whose credit has taken a hit might also find it challenging to remortgage. = 2nd Charge Mortgages | Brilliant Option
- No fixed income: Remortgaging can be more difficult because self-employed business owners typically have inconsistent incomes and multiple income streams. = 2nd Charge Mortgages | Brilliant Option
Lender panel
Here at Connect Mortgages, we can certainly answer the question of why 2nd charge mortgages | Brilliant Option Our Second Charge Team has established relationships with mainstream and specialist lenders across residential and buy-to-let second charges. We have 15 lenders currently on the panel to give many choices to help more customers.
Second charge opportunities
As well as being a mandatory requirement when raising capital, second charges can expand your potential, as they often fit when a first charge doesn’t. Below are just a number of the opportunities second charges present.
- Raise capital while maintaining the first charge rate and avoiding ERCs
- Credit profile means mainstream first charge options are unavailable, meaning a product switch and second charge is a better option.
- High Debt to Income Ratio that rules out first charge mainstream lenders, again product switch and a second can be preferable rather than revert to adverse lenders.
- Credit repair strategies
- Options for serious credit issues including IVAs, Debt Management Plans, defaults, CCJs and missed payments
- Second charges often have more generous affordability calculations.
- Loan to value up to 100%
- Reasons for lending – debt consolidation, home improvements, holidays, purchase of another property, business purposes, and tax bills, to name but a few
- Expat Options
In closing, are 2nd charge mortgages | a brilliant Option? There are many reasons why you should consider 2ndcharge mortgages. You may not fully understand or know the reason until you discuss your circumstances with a mortgage adviser.
Connect Mortgages can help clarify and find the right 2nd charge mortgages for you. We are here to help!
