A second charge mortgage can be a cost-effective alternative to re-mortgaging. Especially if your client currently has:
- A 1st charge mortgage with a low interest rate
- Early redemption charges
- Any other reason that would make it expensive to repay the current mortgage
- Income multiples that don’t fit 1st charge criteria. 2nd charge lenders can go up to 6 x and some lenders work purely off an affordability model
Money can be raised for a variety of reasons, including:
- Debt consolidation
- Home improvements
- Holidays
- Cars
- School fees
- Tax bills
- Most business purposes
- Assisting with Buy to Let purchases
- Loan sizes range from £10,000 - £2,500,000, more can potentially be obtained.
Interest rates start from just 3.69% which is why a second charge loan should always be considered alongside any capital raising re-mortgage.
Contact our team on 02920 218 630 for advice on the best option for your client.