Second Charge Loans How Much Can I Borrow?
Homeowner secured loans and second charge loans are one and the same thing.
They are essentially a second loan taken out on your property. As it is secured on your property the charge is registered against your property at the land registry office. You need to be aware that your mortgage lender has the first charge on your property and the secured loan will be the second charge on your property
Homeowner Loans can be ideal to sort out your finances by consolidating various debts including credit card debt. Generally they offer higher loan amounts, longer repayment terms which could enhace your chances of having your application accepted.
Second charge loans are repayable on a monthly basis just like your mortgage. Some lenders offer some flexability with regard to payments and one off lump sum payments, both of which enables you to pay off the secured loan over a shorter duration than was first agreed.
A variety of secured loan lenders also offer repayment holidays or payment breaks, enabling you to halt your monthly payments for a short period which is usually offered at the beginning of the loan. This is often referred to as a ‘deferred repayment’.
Alternatively the break in payments can occur at an agreed time during the secured term. Obviously interest will continue to be applied on the outstanding balance and this may result in higher monthly repayments so your second charge loan still gets repaid over the agreed term as set out at the beginning of the lsecured loan.
What question everyone wants an answer to is, second charge loans how much can I borrow? To be honest the most you’ll be able to borrow is dependant on your credit rating and on an afffordability calculation. So even if you have a bad credit rating you might findthat because the usual income multiples used for mortgages does not apply you may be able to borrow a lot more than you think is possible.
However, due to the finanicial liquidity crisis and the ensueing ‘credit crunch’ things are currently very tight and lenders cirteria is changing on a daily basis.
Given the current financial climate the best thing to do is get up to date help. Just give The Bad Credit Mortgage Centre a call, it costs nothing to call us and find out if there is product to suit you needs and circumstances.
Remember we specialise in helping people with bad credit, or no previous credit history or are self employed with no proof of income. So call now to find out how much you can borrow with a second charge loan.
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