The increasing popularity of the second charge mortgage.
With property prices having significantly risen over the last few years, many home-owners have found themselves enjoying an increase in equity. For some this has presented an opportunity to release cash to fund projects they wouldn’t otherwise have been able to afford.
A second charge mortgage isn’t the same as remortgaging. It’s in effect a second loan taken out on a property, it can be with the same lender or someone completely different and is for the amount of additional funding you’re looking to be advanced.
With affordability rules having tightened over the last year, those who are no longer eligible to remortgage can find that they are eligible for a second charge mortgage. Criteria is a bit more flexible, which is increasing the popularity of this type of product.
A second charge mortgage is often used to fund home renovations or consolidating debt. However, of late borrowers have increasingly been using the cash released, for school fees or to fund projects not related to their home.
If you are looking to release equity from your home and would like to find out whether a second charge mortgage or straight forward remortgage deal would best suit your needs, call us at Deal Direct.
We offer free, impartial, no-obligation advice, and a ‘whole of market’ mortgage search. We recommend only those products we believe are in your best interest and suited to your financial needs.
Call us today for advice to discuss your options for taking equity out of your home.
Call a Deal Direct adviser on 0800 048 8828.
