Specialist
Second Mortgage For Debt Consolidation
For raising finance from your home to consolidate debts
Speak to us today...
For raising finance from your home to consolidate debts
Speak to us today...
What is a second charge mortgage for debt consolidation?
How does a second charge mortgage work?
What else can I use a second charge mortgage for?
Second charge mortgage calculator
Will a second charge mortgage hurt my credit?
Can I get a second charge mortgage even if I have a bad credit rating?
How do I get a second charge mortgage for debt consolidation?
A second charge mortgage is a mortgage taken out against a property that already has an existing mortgage. So if you need to raise additional funding to manage any finance issues you might be experiencing, a second charge mortgage could be a suitable option.
Second charge mortgages can allow you to borrow money through your property without the need to remortgage completely. They can be a cheaper, more practical solution to raise finance against your existing property.
If you run into financial struggles at any point, additional financial burdens can lead to accumulating debt. In cases like these, a second charge mortgage can help you raise money to pay off your outstanding debt and manage your capital.
See similar: How to get a fast second charge mortgage
A second charge mortgage can also allow you to combine debt, making the repayments more manageable.
It’s called a "second charge" mortgage because it will be second in line for repayment. So, your original mortgage has priority in being repaid first, followed by your second charge mortgage.
It's particularly useful for borrowers who don't want to change their primary mortgage deal but still want to raise additional funds.
And because it's a second charge, there will be a focus on your property's equity. So if you have already paid off a large part of your mortgage, you may be able to borrow more for your second charge mortgage.
When used appropriately, taking out a second mortgage to consolidate your debt, reduce it or roll your payments into one could simplify any financial difficulties you might be facing.
Learn about the benefits of second charge mortgage in our short video below:
Second charge mortgages aren't just used to pay off debt. They are commonly used to finance home improvements or extensions and can also be used to fund weddings, medical expenses or even start a business.
Because you have already been accepted for a previous mortgage on your property and most likely have paid off a portion of that portion already, the lending criteria for second charge mortgages can be more relaxed.
This flexibility surrounding the purposes of your second charge mortgage is what can make it a good option for debt consolidation.
Some types of debt that a second charge mortgage can be used for are:
As well as this, lenders can have more relaxed criteria regarding your Loan to Income ratio (LTI) for second charge mortgages, and you may also be able to borrow more than 4.5 times your income.
Want to know how much you can borrow? Use our second charge mortgage calculator below:
While it's true that a second mortgage can have implications for your credit, the overall effect will depend on a few factors, as well as how you manage your finances. Applying for a second mortgage could cause a temporary dip in your credit score due to the hard inquiry performed by lenders.
However, if you make timely payments and demonstrate responsible debt management, your credit score will gradually recover and improve over time. Consistently meeting your financial obligations and keeping your debt-to-income ratio in check are key factors in minimising any negative effects on your credit.
Consulting an experienced mortgage broker can provide personalised insights into your individual circumstances and help you navigate any potential impact on your credit.
Having a bad credit rating can indeed pose challenges when seeking traditional loans or mortgages. However, when it comes to second charge mortgages, there is still potential for obtaining financing even if you have a less-than-ideal credit history.
While mainstream lenders could be hesitant to extend credit to individuals with bad credit ratings, there are specialist lenders who cater specifically to this market segment. These lenders can take a more holistic approach, considering factors beyond just credit scores, such as the equity in your property and your ability to make repayments. They understand that past financial difficulties shouldn't necessarily dictate your current borrowing capabilities.
By working with these specialist lenders and providing supporting documentation, such as proof of income and explanations for any past credit issues, it is possible to secure a second charge mortgage even with a bad credit rating. However, it's essential to note that the terms, interest rates, and loan amounts may differ compared to those offered to borrowers with good credit.
At Clifton Private Finance, we have relationships with a variety of private lenders who may be able to take a more flexible approach to your finance options. We have experience working with individuals with complex circumstances, and can help you explore suitable options and improve your chances of obtaining the finance you need.
If you're not sure where to start, it can be beneficial to seek advice from a specialist mortgage advisor. They can help you decide whether this is the most appropriate option for you and can use their market knowledge to find you the best rates.
If you would like to find out more information or discuss your situation specifically, get in touch with our experts at Clifton Private Finance, and we can help you find the best option available to you.
You can book a no-obligation, free telephone consultation to discuss your needs and situation.
Or call us on 0117 313 5719 to discuss your requirements.
Based on the figures entered, we think your second mortgage will cost:
Repayment: (Capital & Interest)
Interest Only:
This information is computer-generated. It has only been designed to give a useful general indication of costs. Make sure that you read the separate key facts lender illustration before you make a decision. To get a full mortgage quote contact us.
I approached Clifton Private Finance to help me get a mortgage as an Expat working in the Far East. I would normally 'cut out the middle man' on something like this and try to get myself a deal directly with the banks, but I am now sold on the broker concept and wouldn't hesitate to use Clifton Private Finance again. There were a number of complicating factors such as being an expat, the stamp duty holiday, the sheer amount I wanted to borrow and the fact I wanted it all wrapped up before the Stamp Duty holiday ended. It is clear to me now that the relationship that brokers have managed to foster with their banks means they can simply pull levers and make stuff happen that us ordinary folk cannot. Put simply, they are worth every penny, will take most of the stress out of the lending process, and seem to have access to deals that you just won't find on the internet. Thank you George and Jan for all your hard work!
James M
Luther was excellent. Very clear in his advice and explanations of products and was able to move things on very quickly when we ran into difficulties with the estate agents. Without a doubt I would recommend Luther to all friends, family and colleagues. Luther was a joy to deal with and took a lot of the stress out of a troublesome transaction, from my end. I would view Luther as real asset to Clifton Private Finance Ltd.
William W
The team at Clifton Private Finance has been outstanding, not only in helping me to obtain a mortgage on a slightly unusual home, but also in continuing to provide support and liaise with the lender and solicitors through to completion. Thank you for making the process of buying my first home much easier.
Chantelle S
Sam O'Neill, and the new lender he identified for me, worked tirelessly together using my time constraints, to make sure my mortgage application was completed on time. They are a brilliant company to work with, fast, efficient, open and transparent from the very beginning, and turned a seemingly impossible situation into a viable one. Sam was brilliant throughout the whole process and I would highly recommend him, and his colleague Helen, to anyone without hesitation, I cannot speak highly enough about them.
Myr B
I was incredibly lucky to find Clifton Private Finance after a search on line as their service has been more than exemplary. My point of contact was Sam 0’Neill and he was happy to help at every stage during the application of the bridging loan, making a stressful process much easier to deal with. He was always available by phone or email and gave prompt answers to queries I had as well as always getting back to me when he said he would. That to me is excellent customer service and I cannot thank him personally or the company enough for the support they have given me.
C Jefferey
Adam cannot thank you enough for all your support throughout this arrangement. You have gone more than the extra mile to support us. Without you we would not have got our dream retirement home. You have been most professional and personable. Liz and I would be more than happy if you wanted to use us a reference with respect to any future clients.
Nigel & Liz K - Bristol
You have certainly shown me that you do everything for your clients, including tolerating their excessive emails and questions for updates. I have been kept in the loop, from yourself, about why the delays were occurring (Nationwide, post etc) which I would like to highlight that I really appreciated. I certainly will be able to recommend you to others as and when the need arises.
Mr Morris
I recently contacted Clifton Private Finance after a Google search for bridging finance providers and was immediately struck by their efficiency and support. Forms were emailed over almost immediately and the necessary finance was arranged within a few days. None of the other companies I contacted came close to their professionalism, and the quote that I eventually received was impressive. Thank you Adam, your help has enabled us to reserve the house that we wanted and I certainly recommend you to others.
Mr M. R. - Oxford
Absolutely brilliant. The service was first class, got everything sorted efficiently and were always friendly. Any fees were negligible compared to the service offered. Robert was particularly outstanding.
Charles N
My advisor, Robert, was very helpful in finding the mortgage to suit me. He kept me up to date throughout the process and dealt with any issues when they arose.
Rowena C
