Second Mortgage (Call 0800 138 2657)
Whenever a property is used to secure finance it is described as a Second Mortgage. Borrowers can generally raise finance at a lower rate than a personal or unsecured loan. As the lenders risk is lower with a Second Mortgage, lower rates are achievable.
Second Mortgages can go up to £500,000 or higher depending on the equity (risk). A mortgage must already be in place to get a second mortgage. A second mortgage is also known as a second charge.
Payment terms for a Second Mortgage generally ranges from five to twenty five years. If the borrower should wish to repay a second mortgage off early there may be a penalty charge. the consumer credit act regulates Second Mortgages for £25,000 or less and are obliged to charge no more than 30 days interest as an early settlement penalty.
Interest on Second Mortgages will be charged on the sum borrowed, which is measured by the Annual Percentage Rate (APR). Your particular situation as well as the amount borrowed and the term taken are among the deciding factors when second mortgage APR's are calculated. Some lenders will lend up to 125% of the value of your property.
Unsecured loans are generally harder to get than a second mortgage. As you are giving the lender some security their risk is lowered compared to no security. A second mortgage can make it easier for homeowners who have recently changed occupation or employer or who are self employed or have a poor credit history, to obtain a loan. The maximum amount that can be borrowed is much higher for a second mortgage.
How to Apply for a Second Mortgage with Chase Saunders:
Simply fill in and submit our short online enquiry form. A second mortgage underwriter will call to discuss your personal requirements. We do not have a call centre and NO telesales staff whatsoever. All Second Mortgage enquiries are taken by an underwriter. This means that you simply ask for your underwriter by name after the initial contact and they will guide you through the process and obtain the lowest quote that they can achieve.
The Consumer Credit Act regulates second mortgages under £25,000, which requires a consideration period of seven days to be given to ensure that you are happy with all the terms and conditions. This delay is unavoidable for loans less than £25,000
