5 Tips to Get a Second Charge Mortgage
Second charge mortgages are the loans that sit behind the loan, i.e, mortgage on the mortgage. Hence they tend to be more expensive than the First charge mortgage.
These are few tips to get a good “Second Deal”:
1) It is usually seen that you would get a good deal from a specialist second charge loan lender; already better than what your current mortgage lender would offer to you. There are several lenders operating in the market who offer second charge finance and their rates vary from low to very high. You need to be very careful and look around and close your deal very diligently.
2) If possible, include the sets of a “Mortgage Advisor”. These Advisors have access to a wide range of lenders and hence offer a wide choice of rates and fees. In fact, these advisors do all the preliminary spade work for you, which saves you both time and money.
3) Second Charge Mortgages, which are also called Secured Loans, take the same time and paper work to obtain as First Charge Mortgages. Valuation needs to be carried out again and there are several cost involved. You need to check as to who would pay the fees and how much it would cost to redeem the loan.
4) Some secured loan lenders that specialise in lending to people who have bad credit record or are self employed. These lenders should be resorted to only if you cannot prove your income as they charge higher monthly rates.
5) Some lenders try to make for their margin by adding additional fees or include compulsory insurances, like unemployment cover. Generally the insurances are expensive and you can get better value from specialist insurance brokers. The loan lenders make money by you not being able to check outside and with some policies the cover is not sufficient to cover you.
These “tips” should be able to help and assist you the next time you look for a Second Charge Mortgage.