2nd charge mortgages
Simply, a 2nd charge mortgage sits behind a 1st charge on a client’s residential property.
There are numerous scenarios a 2nd charge would be preferable to a 1st charge re mortgage, a further advance or an unsecured loan including:
- Tied in to a fixed rate product on 1st charge therefore redemption penalties to re mortgage
- Failing income multiples on 1st charge or re mortgage application
- Arrears on current 1st charge or existing unsecured credit
- On a very low 1st charge rate so not best advice to re mortgage away from existing product
Headline features of 2nd charge residential mortgages are:
- Rates from 3.37%
- Loans from 10k to 2.5 million
- Products that don’t work off income multiples just an affordability assessment
- Adverse credit products
- Up to 100% LTV available (we are always cautious with high LTV applications and get you and client to agree to it before recommended)