Second charge mortgages may be a better option than a remortgage

If you currently have a mortgage secured on your property and live in the UK chances are that you have benefited from the Bank of England dropping interest rates to half a percent. This is great for everyone on tracker or variable rate mortgages as payments will now be a lot lower.

However if you have a lot of unsecured debt and was thinking about consolidating on to the mortgage you will come across some hurdles. The first problem is that you will have to pay a redemption fee to get out of your deal or wait until you are free to move. To negotiate this problem people are searching for second charge mortgages on line, many people use the internet to search for new mortgage and secured loan deals. With a second charge mortgage you will be able to raise the finance you need to clear your out standing debts.

You may have a bad credit record, if this is the case you will have problems raising a secured loan against your property. A mortgage advisor wil be able to help you in this situation as they have access to specialist lenders that provide second charge mortgages for people with bad credit.

Another reason people are using second charge mortgages to consolidate debt is that they do not want to lose the great rate that they are already on with their current mortgage provider.

Before you apply for a second charge mortgage you will need to do the maths to see if it is worth your wile consolidating your debt in to a second charge mortgage as the rates for these loans are a lot higher than for standard mortgages.

About the Author

J P Financial are a whole of market mortgage brokers, speak tou advisors today for mortgage advice in the UK. We can provide advice and information for buy to let mortgages and commercial finance

One Response to “Second charge mortgages may be a better option than a remortgage”

  1. Cash On The Blog » Blog Archive » Second charge mortgages may be a better option than a remortgage – Wealth Building. Money. Investing. Stock Markets. Banking. Taxes. Insurances….

    If you currently have a mortgage secured on your property and live in the UK chances are that you have benefited from the Bank of England dropping interest rates to half a percent. This is great for everyone on tracker or variable rate mortgages as pay…