Second charge mortgages are often referred to as second mortgages because they have secondary priority behind your main mortgage. It is a loan which uses your home as security and many clients use them as a way of raising money as an alternative to a remortgage. It means that you will have two mortgages on your home.
Before obtaining a second mortgage it is important to speak to your existing mortgage lender first to see if they can help. This will be cheapest and quickest way of obtaining the required borrowing.
There are a few situations where a second mortgage is preferential to a remortgage, if for example, your credit history is not as strong as it was when you took out your original mortgage, remortgaging may land you with a worse deal. Additionally, your current mortgage may have high early repayment charges, making a change unaffordable.
The application process for a second charge loan is very similar to the one you will have gone through when you took out your original mortgage, you will need to provide evidence of your income, payslips, bank statements and a proof of identity like a passport.
There are a lot of second charge mortgages available on the market, it is worth talking with Falbros to explore all your options.
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Our mortgage brokers offer mortgage advice on a wide variety of mortgages, more detailed information about the different mortgages can be found below.