There are times & situations when sometimes a remortgage isn’t the best option. It may be that you want to raise some money for a new car, motorhome, debt consolidation, house extension or tuition fees for example but when you look at the options open to you, redemption penalties or other conditions of your existing mortgage would make that an expensive option. It could be that you have a great deal with a low interest rate and don’t want to move away from that yet still want to raise some finance. This is where a Secured Loan comes in.
A Secured Loan may well be the best way forward in these circumstances and we can advise you on the suitability once you’ve made an enquiry and we have a feel for your own unique circumstances.
A Secured Loan is a loan which is secured on your property and sits behind your existing mortgage company’s first legal charge; commonly known as a second mortgage. As it’s secured against your property – just like a mortgage – then secured loans are far cheaper than unsecured loans and can often be run over longer periods, just like a mortgage rather than the 5 years common for the sort of unsecured loans you’d find available in your High Street Bank.
In recent times the secured lending market has become increasingly popular, particularly as the majority of High Street lenders will not consider applicants who have had recent mortgage arrears or adverse status such as county court judgements or defaults registered against them. Providing there is a reasonable level of equity in the property there are lenders in the marketplace who will consider a second mortgage in these circumstances.
Another reason why a secured loan or second mortgage may be a better option is that clients might not necessarily want to raise an overly large sum of money and so the the costs involved in a re-mortgage may be excessive.
As many of our self-employed clients will agree, remortgaging criteria has become very strict in recent years (although we do still manage to find suitable mortgages for many of our self-employed clients) whereas in the Secured Loans market, many lenders are more willing to take a more relaxed view – it’s our job to guide you through the maze of rates, offers, terms & conditions to find a secured loan package that’s in your best interests and takes into account all your circumstances.
For your protection, Second Mortgages are regulated by the Financial Conduct Authority. Our FCA Registration is shown at the page footer.
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Westminster Chambers • 106 Lord St Southport • Merseyside PR8 1LF
You may be required to pay a broking fee. The fee will depend on your circumstances, an indication is 2.5% of the loan subject to a minimum of £2800.
The overall cost for comparison is 4.6% APR but the actual rate available will depend upon your circumstances. Please ask for a personalised illustration.
Think carefully about securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.