A Second Charge mortgage is, as the name suggests, a separate and additional mortgage to the homeowner’s main (or first) mortgage.

Second charge mortgages (sometimes known as ‘Homeowner Loans’) are loans that are secured against the borrower’s residential property, and as such, are available only to homeowners. In common with remortgages, second charge mortgages are sometimes used by homeowners to raise money.

When considering a second (‘further’) advance, the lender will take into account the value of the borrower’s home, less any mortgage owed on it. The difference between the two amounts is known as ‘equity’ and provides the lender with security against the loan. If for example, the home is estimated to be worth £300,000 and the amount remaining to be paid on the mortgage is £100,000, the equity is £200,000. In addition to the amount of equity that’s available, the lender will consider the borrower’s ability to service both mortgages if interest rates were to rise.

By taking a second mortgage, the homeowner will have two mortgages on their home. In common with a first mortgage, the borrower’s home will be at risk if he or she fails to keep up the mortgage payments.

When the property is sold, or the homeowner moves to a new home, the amount owing on the first mortgage must be repaid in full before anything is paid off the second mortgage.

Generally speaking, lenders charge a higher rate of interest on second charge mortgages than they do on first or main mortgages. The rate of interest (which may be fixed or variable) can also depend on the size and term of the loan, the homeowner’s credit rating, and the amount of equity that exists in the home.

!

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT.

London Stock Exchange

Value Move %
FTSE 100
8053.45 13.07 0.163
FTSE 250
19567.17 -152.199 -0.772
FTSE 350
4421.34 1.63 0.037
FTSE All Shares
4375.42 1.36 0.031
Dow Jones
37799.26 -661.66 -1.72
Nasdaq
15409.003 -303.746 -1.933

Currencies

Value Move %
0
1.165 0.001 0.083
GBP/NOK
13.72 0.024 0.172
0
13.657 0.102 0.751
GBP/USD
1.247 0.001 0.085

Biggest Movers

Value Move %
SEGRO
795.6 +52.4 +7.05
easyJet
477.8 -18.1 -3.65

Requestcall back form

Request call back.

or call us
0191 548 3333
 

0191 548 3333
63/65 Sea Road,
Fulwell,
Sunderland SR6 9BW.

office@advancedifa.co.uk