What is a second charge mortgage?
A second charge mortgage is a way to release funds from a property, where the property serves as security for the lender. This type of mortgage sits behind the first mortgage, and in some cases, it can be more advantageous than remortgaging.
Second charge mortgages can help homeowners raise capital for a variety of purposes, from home improvements to consolidating debt. With loans available from 10K to 2.5 million, our second charge mortgage products are tailored to meet the specific needs of your client.
What is the criteria for a second charge mortgage:
A second charge mortgage could be a good option for your client in several situations. For instance, if your client’s current mortgage is in a fixed-rate period, remortgaging could result in additional fees. Additionally, if your client has an interest-only mortgage or a low rate of repayment, remortgaging could increase their payments, whereas a second charge mortgage could protect their current terms.
Second charge mortgages are often more flexible when it comes to bad credit or low credit scores. Another scenario where a second charge mortgage may be suitable is if your client has an unconventional loan purpose, such as paying a tax bill or purchasing a buy-to-let property.
Eligibility requirements vary from lender to lender, and several factors are taken into consideration. Your client must have sufficient equity in their property, as the second charge mortgage will be secured against this equity.
Specialist Finance Centre’s approach to second charge mortgages:
At Specialist Finance Centre, we believe in providing our introducers with a simple and transparent service. Our second charge mortgage team will always make you aware of any fees upfront, and we handle all enquiries on a no-obligation basis. With all loan fees typically added to the net loan facility.
We are committed to offering a personalised service and tailored solution to meet the unique needs of your clients. Whether your client is looking to raise capital for home improvements, consolidate debt, or fund a new project, our team of second charge mortgage experts is here to help. Contact us today to learn more about how we can assist you and your clients in achieving their financial goals.
