SECURED BORROWING
Second Charge Loans
A specialist form of borrowing secured against a property alongside an existing mortgage.
What is a second charge loan?
Second charge loans can be secured against residential or buy-to-let properties. The lender has a second call on the property if the borrower defaults, behind the lender holding the first mortgage.
Second charges are generally more expensive than first-charge mortgages, but they may be considered by people seeking to raise capital where their existing lender will not provide further finance or where remortgaging would trigger significant early repayment charges.
Things to consider
The interest rate, fees, repayment term, affordability and the total amount repayable all need careful consideration. Adding borrowing secured on your property increases the amount you owe and may extend the period over which you repay it.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT. SOME BUY-TO-LET MORTGAGES ARE NOT REGULATED BY THE FINANCIAL CONDUCT AUTHORITY.
