A ‘second charge’ is a personal loan that homeowners secure against the equity in their property.
Second charges can be arranged against:
- Principal place of residence
- Buy-to-let properties
- Commercial properties
MWA can introduce you to specialist companies who source their second charges from a whole-of-market representation of the second charge mortgage market of lenders. This enables them to cover all types of products from prime clients through to clients with recent or historic credit problems.
Second charges can be used in a variety of scenarios, for example:
- Avoid paying an Early Repayment Charge (ERC) on an existing mortgage
- Client has a very low SVR or BBR tracker mortgage that they do not want to move away from
- Raise finance for any legal purpose, including debt consolidation, home improvement and business funding
- Raise money quickly – loans are typically completed in 2–3 weeks
Some unique selling points of a second charge:
- Loans from £10,000–£250,000 (more by referral)
- Up to 95% LTV on residential properties
- Up to 70% LTV on commercial and buy-to-let properties
- Up to 75% LTV for clients with credit problems (the more severe the problems the lower the LTV)
- Loan terms of 5–30 years
- Interest-only and repayment options available
No upfront costs to set up a second charge – our specialist brokers will cover all costs, including valuation
Maximum ERC is one month’s interest after one month’s notice
MWA and First Complete Ltd are responsible for the advice supplied by the third party, however, through experience, we are confident that the firms we recommend are competent, pro-active and focused on providing a high level of service.
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER DEBTS SECURED AGAINST IT.
Securing short term debts against your home could increase the term over which they are paid and therefore increase the overall amount payable.