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Second charge mortgages are a type of secured loan which allows homeowners to raise extra money without remortgaging or taking out an unsecured personal loan. John Charcol can help you find flexible mortgage providers who are willing to lend you money that is secured against the value of your home.
With a second charge mortgage your loan is secured against the value of the equity in your home much like your first mortgage. There are several reasons where a second charge mortgage might be worth considering, including:
Any homeowner with at least 15% equity in their property can apply for a second charge mortgage. Second charge lenders may offer more flexible lending criteria than a first charge mortgage, but broadly applications are assessed in the same way as a traditional mortgage; taking into consideration the property’s value and condition as well as your income and credit rating.
How much you can borrow will depend on the equity in your property - the equity is the percentage of the home owned outright by you. For example, if you bought a house for £500,000 and you have £150,000 left to pay on the mortgage, then you have £350,000 equity. The equity you own in your home will increase with the property’s value.
Second charge mortgages usually let you borrow money starting at £10,000. The higher the equity in your property, the more money you are likely to be able to borrow. Although this would be subject to your income and credit rating.
John Charcol can advise you on everything you need to know before considering a second charge mortgage. Before applying, it is worth considering the following information:
For second charge mortgage advice, get in touch with John Charcol's team of experts by calling us on 0344 346 3672 or requesting a callback from a broker. We specialise in finding the best mortgage rates for all kinds of buyers.