Looking for a second mortgage to top up your existing lender or to finance that extra special home improvement.
What is a Second Mortgage?
A second mortgage is an additional mortgage taken on your property. As opposed to a remortgage where you clear your first mortgage and take out a new mortgage taking a second mortgage is just as it sounds. The reason someone may take out a second mortgage as opposed to remortgageing may be because they are tied into their existing lender and so the early redemtion penalty may be too high to redeed early.
As with raising any additional finance from the equity of your house it can be used for a whole manner of items including home improvements, debt consolidation or that brand new car or holiday.
A second mortgage could be taken out with your existing lender or a new mortgage provider. A second mortgage is possible now since most properties will have an element of available equity in them since property prices have over recent years increased quite dramatically. Equity is the term for the difference between the sale value of your property, and the mortgage or loan outstanding against it and having this gives you an option to take out a second mortgage loan.
There are specialist advisors in this sector of second mortgages. If you have a repayment mortgage, where your monthly payments contribute towards reducing the balance each year, and you have been paying your mortgage for several years, you will have paid off some of the loan, and this combined with increasing property value will have resulted in equity. It's possible that the interest rate offered for your loan with a new lender will be less competitive than the rate you were offered for your first mortgage, as the new firm will only have a second interest in the property should you default - this means the first lender has a first claim to the property to repay their outstanding debt in this eventuality.
So for more iformation and a free second mortgage quote all you need do is click the banner below and complaete our short enquiry form. You will then be contacted by a fees free mortgage advisor for a no obligation quote.
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