Can I take out a secure loan on an interest only mortgage?

Posted on 13 October 2007

Is it possible to take out a secure loan on an interest only mortgage?

Hi Cheryl,

Yes, as long as you have some equity in the property, you should be able to put a second charge mortgage (secured loan) against it.  The way that you have agreed to repay your mortgage is not connected at all to deciding what else you can or can't secure against the property.  

Please speak to your current mortgage lender first though, they can normally offer you a 'further advance' which will be an extension to the mortgage that you currently have.  These rates are often better than secured loans.

Katie.

Category: Secured loans

 

Answers provided in response to Ask Bea are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not neccessarily represent the views, positions, strategies or opinions of Charcol Limited. All comments are made in good faith, and neither Charcol Limited nor Bea will accept liability for them.

We recommend you seek professional advice with regard to any of these topics where appropriate.

Question