A second charge mortgage is borrowing a lump sum of money as you are repaying your existing mortgage over a fixed term. Second charge mortgages are also called secured loans, because the load is secured on the property. The lender has the right to take the property from you if any thing happens. You can use a second charge mortgage for whatever you need without affecting your other normal mortgage. A lot of people are taking out more second charge mortgages.

Key Takeaways:

• A second charge mortgage is defined as a lump sum borrowed alongside which you pay your mortgage for a standard time period.
• A large portion of second charge mortgages fund home renovation thus, raising the value.
• A second charge mortgage is easier to secure as it based on the equity within your home.

“Interest rates on a second charge mortgage are often lower than a personal loan as the loan is secured against the value of a property and therefore the lender could recoup the money through repossession.”

Read more: https://www.whatmortgage.co.uk/second-charge-mortgages/guide-second-charge-mortgages/