Second Mortgage
A second mortgage is a secured loan taken alongside a first mortgage on the same property. It is different from a remortgage in the fact that a remortgage is when you replace your existing mortgage with a new mortgage whereas a second mortgage is taken alongside a first mortgage.
A second mortgage offers the benefit of helping you raise money for practically any purpose. The raised cash can be used for a wedding, holiday, a new car or home improvements. One of the major factors you have to look at when getting a second mortgage is the equity on your property. If you have owned your property for a long period, chances are your property will have increased in value and therefore equity will have been built up.
If you are thinking of raising cash from your property and remortgaging is not an option then a second mortgage may well be what you need. A second mortgage is a very good choice if you want to keep your current mortgage because of good rates but want to raise money from your property. In this case a remortgage may not be a good option as the remortgage rate may not be as good as your existing mortgage.
Second Mortgages are particularly suitable for people with bad credit hence cannot remortgage or people who are self employed
- Second Mortgages are suitable for people with bad credit or self employed
- An excellent option if you are refused a remortgage
- Excellent for raising money for any purpose
