Using a second mortgage can be an effective way to raise money through your property. If you have built up equity in your home by paying off your mortgage over the last few years, you could borrow a large amount through a second charge loan.
It is known as a ‘second charge’ because it is essentially the second payment that is charged on your home each month (with your main mortgage because the first payment that is charged out). It is commonly used by households who need extra money to expand their home or pay off debts, and is also used by property developers to buy additional properties and expand their portfolio.
A second charge mortgage is classified as a secured loan, which is secured against your home and failing to keep up with repayments can put your property at risk of repossession. It can be secured against your existing home, or an additional home that you are borrowing against.
My Financial Broker works with a number of status and non-status second charge mortgage companies, helping you release the maximum amount from your home or flat. You can usually borrow up to 85% LTV of your property’s value and repay over 3 months to 5, 10 or 20 years. Simply click on apply now below to get an initial quote.