Second Mortgage

What is a second mortgage?

Usually people refer to a second mortgage as a top up mortgage. Often such mortgages are used to fund things like home improvements or to consolidate debts. Often, it is not necessary to go to a new lender, You could approach your existing lender for what is known as a further advance. This will mean that they may provide funds based on the usual criteria such as your earnings and credit rating.

Sometimes you will not need to go for a second mortgage as you could remortgage. This means replacing your existing loan with a new larger loan.

A second mortgage is usually appropriate for those people who do not qualify for a remortgage, or are tied into an existing mortgage and have penalties to get out of the contract.

Click here to get advice on a second mortgage from an independent financial adviser.

Your home is at risk if you do not keep up repayments on a mortgage or other loan secured on it.