A second charge mortgage is a second mortgage on the property you already own. It is a convenient, easy, and fast way of raising funds when you need them the most. Thousands of homeowners and businesses across the UK use second mortgages to address emergency cash requirements. As the name suggests, a second charge mortgage can claim the second charge on the property, while the original mortgage claims the first charge. It’s important to know and understand that second charge mortgages, just like all other property mortgages, are secured against the property.
Hence, if you are taking a second mortgage on your home, the lender can repossess your home if you fail to repay the mortgage on time.
• Individual borrowers and UK businesses.
• Residential properties.
• Commercial properties.
• Unoccupied real estate.
Regardless of of your earning potential and financial discipline, you can still find yourself running low on readily available finances. As is the wont of financial crises, they present themselves at the most inopportune times, making matters worse. Most people and businesses, when faced with such money problems, look to get external funding, typically in the form of personal loans. Personal loans, as convenient as they may be, aren’t always the best way out of such situations. For starters, personal loans can only provide a small, temporary support, that, as you may well know, is often very expensive. Moreover, your credit score will always dictate if you can get a personal loan, and how big it will be. Second charge mortgages offer a better, more reasonable and certainly more affordable alternative to such loans. A second charge mortgage, also referred to by many as a second mortgage, a homeowner mortgage or simply, a secured loan, is essentially a loan taken against a property you own. Cognis Capital Partners helps you find customized, affordable and unprecedentedly flexible second mortgage quotes from responsible lenders across the UK.
• Second charge mortgages starting from as low as £5,000
• Second mortgages available across the board for all properties.
• Secured property loans for up to 95% LTV.
• Industry-leading interest rates for secured loans (fixed and tracker rates available).
• Second charge mortgages available despite bad credit.
• Over 10 years of experience in the UK finance industry.
• Receive quotes from whole of market lenders.
• Guaranteed decisions within 24 hours.
• Fair valuation and thorough paperwork assistance.
• Fast processing and disbursement.
• 24 x 7 customer service.
• Available on nearly all properties.
• Flexible loan terms – from 6 months to 10 years.
• Loan size in proportion with your equity in the property.
• Hassle-free, fast paperwork.
• No need to alter the framework of the original mortgage.
• Available even when you have a bad credit score
For a variety of reasons, the underlying reason, however, is always to make up for the cash shortfall towards another expense. Some of the common reasons for homeowners and businesses across the UK to take second mortgages and secured loans are:
• Raising capital for business ventures.
• Paying tax dues.
• Emergency personal or family requirements like home improvements, weddings, education, healthcare, buying a new car etc.
• Consolidating expensive debts.
• Raising funds to buy or lease another property.
• Transferring one’s equity in a property.
• Miscellaneous cash crises.
Many homeowners assume that taking a second charge mortgage is just the same as re-mortgaging a property. The reality, however, couldn’t be more different.
Taking a second mortgage is inherently different in purpose, scope and structure from re-mortgaging a property. When you take a second mortgage on your home or any other property you own, you essentially take a loan for which the property acts as a security. On the other hand, when you re-mortgage a property, you establish a new mortgage altogether to replace the original mortgage.
Example:Let’s consider an example to understand how taking a second charge mortgage differs from re-mortgaging. A homeowner wants to raise £35,000 to fund an extension, for which the planning permission has already been obtained. The property in question is already mortgaged for £250,000, with repayments scheduled for 10 more years. Having exhausted other credit options, the homeowner cannot access an affordable personal loan. So, he goes on to take a second charge mortgage on the property at a suitable interest rate. The repayments for this secured loan will be in tandem with the repayments for the interest-only original mortgage. If, on the other hand, the homeowner had decided to re-mortgage the property for, let’s say, £300,000, he would have gained access to an additional capital of £15,000. However, the early redemption penalty (typically 2-5%) for the original mortgage would have nullified this extra capital. So, re-mortgaging would, in effect, have been a significantly more expensive and unreasonable deal than the second mortgage.
When you are applying for a second charge loan, it’s important to understand the exact deal you are getting. Many property owners find themselves dealing with unreasonable interest rates for long periods of time, simply because they picked a wrong deal. With Cognis Capital Partners, you take guesswork out of the equation. Instead of accepting the first loan offer that comes your way from the local high street lender, you can now choose from dozens of competing, fair and affordable second charge mortgage offers from responsible lenders across the UK.
“With fair valuation, fast processing & thorough support, Cognis Capital Partners makes getting a second charge mortgage a truly hassle-free process.”
Along with this luxury of choice, Cognis Capital Partners brings to the mix vast experience in the UK financing industry. With us at the helm, you can stay assured that your interests will always be safeguarded, preserved and cared for.
Here’s why Cognis Capital Partner’s second charge mortgage services have come to be known as an industry standard:
• Each second charge mortgage we broker is customised to suit the borrower’s exact requirements.
• Our panel of lenders consists of specialist and responsible lenders across the UK. This allows us to find for you the most affordable second charge mortgage offer.
• Second charge mortgage quotes you’ll receive from us will be based exclusively on a fair and reasonable valuation of your property.
• We provide thorough, end-to-end support for every second mortgage application.
• Our customer service team is available to address any issues you may have along the way. All loan decisions are conveyed within 24 hours.