Second charge mortgages (secured loans) allow homeowners to increase their borrowing without paying early repayment charges
For those mortgage customers facing a high early repayment charge, or whose circumstances have changed since they first took a mortgage, a second charge or second mortgage can be a better choice to raise finance.
In many instances, a second charge can be a less costly way to fund home improvements or release equity.
However, access to a second charge mortgage – a secured loan which uses the borrower’s home as security – could be more challenging to access, new research shows, with brokers more than twice as likely to refer than to write secured loan business. A survey of 600 mortgage brokers revealed that only 25% of brokers take on the business themselves with some brokers not involved in the second charge market at all.
While many brokers refer their secured loan and second charge customers, at NM Finance we deal directly with the lender on behalf of our clients.