A secured loan, also known as a second charge mortgage, is a loan that is secured against a property that is already mortgaged. It works in the same way as a mortgage and the application process is the same.
If you’ve been refused a further advance or a re-mortgage on your property, a secured loan offers you another route to raising funds. Lenders offering secured loans are usually a little more flexible than mortgage providers and therefore if you have a less than perfect credit record, a secured loan might just be the answer.
That said, it’s not only clients with a damaged credit history that could benefit from a second mortgage. If your existing mortgage is on a low rate, you may not want to re-mortgage the entire borrowing to a new lender, at what may be a higher rate. Or you may face redemption penalties if you take your mortgage away from the current mortgage lender, which negates any benefit in such a change. A secured loan avoids both situations by leaving the existing mortgage untouched, securing the new loan behind it.
If left in the reputable hands of Mortgage Search Go, you can rest assured you will be provided with a deal that best suits your needs
If you would like more information on secured loans, please get in touch. Call us on 0844 69 333 60 or click here to contact us.
Please be aware: Interest rates are often higher than first charge mortgages, a second charge loan will result in an additional monthly payment on top of the existing mortgage payment you are currently making. Therefore, if you don’t keep up with repayments you risk losing your home.