Second Charge Mortgages can be a great way of raising capital from your property and can be of use to avoid higher lending charges. Essentially, they work in the same way as a First Charge Mortgage and therefore are subject to the same rules and same criteria – the mortgage needs to be suitable and affordable.
Some people consider taking out a second charge for debt consolidation purposes, so it’s worth being aware that the lender will take reasonable steps to make sure that consolidated debts are repaid when the new loan starts otherwise they’ll be included in the new affordability tests.
For second charge lending, where appropriate, we will refer you to an intermediary partner, who can provide advice in this area.
If you are undecided on whether to take out a Second Charge Mortgage, Further Advance or remortgage then click here and one of our brokers will advise you which suits best.