The second charge mortgage is a type of secured loan. It allows homeowners to borrow against the equity in their property. This is different from remortgaging. Remortgaging means you switch mortgages, which could mean you pay hefty early repayment charges. Read more https://mydecorative.com/what-is-a-second-charge-mortgage-and-how-do-they-work/
Second charge mortgages are useful for borrowers who want to avoid the remortgaging process. These loans are not tied to your first mortgage and can be used for many purposes, including tax bills and home improvements.
Before making a decision about a second charge mortgage, it is important to weigh up costs. While second charge mortgages can provide the freedom to consolidate debts, they usually come with a higher interest rate than the initial mortgage. You should consider the fees, too, and compare them with other products.
If you are unsure about a second charge mortgage, a qualified mortgage adviser can help you find the best deal. They will take into account your current income, credit history and property value, and recommend the best loan for you.
Many borrowers with poor credit have a difficult time getting a second charge mortgage. However, specialist lenders exist to make this process easier.
As a self-employed person, you may not be able to get a larger loan from your first mortgage provider. With a second charge mortgage, you can borrow more money without affecting your credit score.
Getting a second charge mortgage is a big decision. If you are considering it, contact your existing mortgage lender.